2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 4 - FEES AND TAXES (§§ 56-4-101 — 56-4-406) › Part 2 - TAXES (§§ 56-4-201 — 56-4-221) › Section 56-4-205 - Tax on gross premiums - Due date for payment of tax - Minimum stipulated - Payment by travel insurer

(a)
(1)
(A)
All insurance companies writing the forms of insurance enumerated in §
56-4-201
, except life insurance companies and fraternal benefit associations, orders or societies, and except insurance companies and self-insurers covered by §§
56-4-206
and
56-4-207
, shall pay two and one half percent (2.5%) on gross premiums paid by or for policyholders residing in this state or on property located in this state. Domestic and foreign life insurance companies shall pay a tax equal to one and three fourths percent (1.75%) of gross premiums received from citizens of and residents of this state.
(B)
Any governmental agency operating as a self-insurer and contracts either for a percentage or a flat fee for the administration of its self-insurance plan with an insurance company shall not be obligated to pay the premium tax.
(2)
The taxes shall be reported and payable in an electronic format approved by the commissioner on a quarterly basis with payments being due on or before June 1, August 20, December 1, and March 1. The taxes shall be reported and payable on electronic return forms approved by the commissioner. Installments of the annual premium taxes due and payable for each quarter as described in this section shall be based on the estimated amount of gross premiums received during that prior calendar quarter. A final payment of tax due for the preceding calendar year shall be made at the time each insurance company files its March 1 return. The final payment shall be measured by the gross premium, as defined in §
56-4-204
, received by the respective companies during the calendar year immediately preceding. Any insurance company that fails to report and pay any installment of tax, promptly and correctly as provided by this section, or that estimates any installment of tax to be less than eighty percent (80%) of the amount finally shown to be due in any quarter, shall be subject to interest and penalty as provided in §
56-4-216
for any underpayment of taxes due and payable for that quarter. Any insurance company paying, for each installment required in this section, twenty-five percent (25%) of the amount of the annual premium taxes reported on its annual return for the preceding year shall not be subject to any penalty or interest for the underpayment.
(3)
The minimum amount of tax payable by any company under this chapter for the privilege of transacting business for any calendar year shall be one hundred fifty dollars ($150).
(b)
For the purposes of this section only, "domestic life insurance company" means:
(1)
A life insurance company that maintains in Tennessee:
(A)
The offices of its president and secretary;
(B)
Its principal administrative and operating offices; and
(C)
Its books and records with regard to insurance transactions; or
(2)
An insurance company authorized only to transact the business of reinsuring credit life and credit accident and health insurance, if the insurance company otherwise meets the requirements of subdivision (b)(1), if and to the extent that the tax imposed in this part on gross premium receipts on credit life and credit accident and health insurance is allocated pursuant to the reinsurance agreement from the ceding insurer to the reinsuring insurer, and the agreements shall be effective to enable the reinsuring company to use the premium tax liability so allocated as a credit under §
56-4-217
; provided, that the ceding company may not use as a credit under §
56-4-217
any tax liability allocated by the ceding company to the reinsuring company; and provided, further, that no allocation of premium tax liability as described in this part shall relieve the ceding company from responsibility for payment of the full premium tax and for the filing of sworn returns in accordance with this section.
(c)
From revenues generated by the premium tax on fire insurance levied by this section, a sum sufficient shall be earmarked for the payment of the pay supplement of six hundred dollars ($600) to eligible firefighters by the commission on firefighting personnel standards and education pursuant to title 4, chapter 24.
(d)
(1)
A travel insurer shall pay the premium tax pursuant to this section on travel insurance premiums paid by the following:
(A)
An individual primary policyholder who is a resident of this state;
(B)
A primary certificate holder who is a resident of this state and elects coverage under a group travel insurance policy; or
(C)
A blanket travel insurance policyholder that is a resident, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance, in this state for eligible blanket group members, subject to apportionment rules that:
(i)
Apply to the insurer across multiple taxing jurisdictions; or
(ii)
Permit the insurer to allocate premium on an apportioned basis in those jurisdictions.
(2)
A travel insurer shall:
(A)
Document the state of residence, or principal place of business, of the policyholder or certificate holder; and
(B)
Report as premium only the amount allocable to travel insurance, not including amounts received for travel assistance services or cancellation fee waivers.
Amended by 2022 Tenn. Acts, ch. 703, s 3, eff. 7/1/2022.
Amended by 2015 Tenn. Acts, ch. 155, s 4, eff. 1/1/2016.
Acts 1945, ch. 3, § 1; mod. C. Supp. 1950, § 1248.41 (Williams, § 1248.169); Acts 1957, ch. 185, § 2; 1967, ch. 174, § 1; impl. am. Acts 1971, ch. 137, § 2; Acts 1972, ch. 728, § 1; 1976, ch. 452, § 1; T.C.A. (orig. ed.), § 56-408; Acts 1984 (1st E.S.), ch. 4, § 1; 1986, ch. 587, § 1; 1988, ch. 667, § 1; 1988, ch. 1003, § 5; 1991, ch. 291, § 1; 1994, ch. 770, § 1; 1994, ch. 1008, § 1; 1995, ch. 304, § 1; 2007 , ch. 567, § 4.