Oklahoma Insurance Department corrects captive premium tax report forms
The Oklahoma Insurance Department (OID) is making corrections to the 2024 captive insurance premium tax report forms available on the National Association of Insurance Commissioners OPTins portal.
The final report forms should be available around the middle of the week of February 17-23, Steve Kinion, captive insurance director at the OID, said in a statement to the market, adding that if you have already created a draft filing in OPTins, please delete the draft and start again once the corrected forms are available. The corrected version of the report will be included in the new filing.
The OID said that over the past week, some captive insurance managers attempting to file and pay the 2024 premium tax found that the form was generating an incorrect minimum premium tax due. They advised the OID of a hard code $3,500 minimum premium tax in the Excel spreadsheet which comprises the form. The $3,500 is the minimum premium tax for series captive insurance companies. The minimum premium tax for all other captive insurance companies is $5,000. The $3,500 minimum continued to appear for those to whom the $5,000 minimum applied.
Since receiving this information, the OID captive staff has not only made corrections to remove the $3,500 incorrect hard code, but to also take the opportunity to improve the form in other ways. For example, one improvement is to add a provision for pure captive insurers who file taxes on a fiscal year basis. You will notice this change at the top of the form. Furthermore, clarification was also made to the prorated minimum premium tax due for captive insurers first licensed in 2024.
In the process of making the changes and improvements, the OID was assisted by Jeremy Chance with the NAIC’s OPTins staff and some captive managers, many of whom are members of the Oklahoma Captive Insurance Association. They agreed to test the various drafts of the improved tax report form and provide feedback.
“Insurance Commissioner Mulready strives to make mandatory reporting requirements, such as paying premium taxes, as friendly as possible for the end user,” said Kinion in the statement. “The assistance of the NAIC, captive managers, and OCIA was invaluable to achieving this goal and the OID thanks them.
“Please note, nothing within this message changes or extends the March 1 premium tax filing due date. The March 1 date is a statutory date the OID can neither change nor extend.”
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