ORS 731.828 Computation of Wet Marine and Transportation Insurance Tax

• Library: Oregon Statutes
• Edition: 2023
• Currency: Current through legislation effective January 1, 2024
• Year: 2023
• Citation: ORS 731.828

(1) Each authorized insurer transacting wet marine and transportation insurance in this state shall file annually on or before June 15 with the Director of the Department of Consumer and Business Services and in the form prescribed by the director, a report of all the items pertaining to the authorized insurer's insurance business as enumerated and prescribed in ORS 731.824.

(2) Each authorized insurer that has written wet marine and transportation insurance in this state for three years shall furnish to the director a statement of all of the items referred to in subsection (1) of this section, in the form prescribed by the director, for each of the preceding three calendar years. An authorized insurer that has not written wet marine and transportation insurance for three years shall furnish to the director a statement of all items for each of the calendar years during which the authorized insurer has written wet marine and transportation insurance.

(3) On or before June 15 of each year, if the authorized insurer has transacted wet marine and transportation insurance for three years, the authorized insurer shall:

(a) Ascertain the average annual underwriting profit, as provided in ORS 731.824, derived by the authorized insurer from wet marine and transportation insurance business written within the United States during the last preceding three calendar years.

(b) Ascertain the proportion that the average annual premiums of the authorized insurer from wet marine and transportation insurance written by the authorized insurer in this state during the last preceding three calendar years bears to the average total of wet marine and transportation insurance premiums of the authorized insurer during the same three years.

(c) Pay five percent on this proportion of the average annual underwriting profit of the authorized insurer from wet marine and transportation insurance to the director as a tax upon the insurance written by the authorized insurer in this state during the current calendar year.

(4) The authorized insurer each year shall compute the tax, according to the method described in this section, upon the authorized insurer's average annual underwriting profit from wet marine and transportation insurance during the preceding three years, including the current calendar year. At the expiration of each current calendar year, the profit or loss on wet marine and transportation insurance business of that year is to be added or deducted, and the profit or loss upon the insurance business of the first calendar year of the preceding three-year period is to be dropped so that the computation of underwriting profit for purposes of taxation under this section will always be on a three-year average.