Premium Tax on Life Premiums
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Face amount equal to or less than $5,000
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.5%
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Face amount greater than $5,000 up to and including $25,000
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1.0%
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Face amount greater than $25,000
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2.3%
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Premium Tax on Health Premiums
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Groups less than 50 participants
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.5%
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All other Health
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1.6%
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Medicare and Medicaid supplement policies and employer sponsored plans for governmental
employees are exempt from premium tax.
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Premium Tax on Property and Casualty Premiums
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Property and multi-peril insurance written in fire protection classes 9 and 10
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1.0%
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Mobile home and low value dwelling policies with a face value of $40,000 or less
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1.0%
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Medical malpractice policies
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1.6%
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All other property and casualty premiums
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*3.6%
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* May be reduced according to the number of employees and offices in Alabama, or
if the company owns at least $1,000,000 investment real estate in Alabama.
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Taxes and Fees Payable to the Department of Revenue
Section 40-14a-21 to 40-14a-29 Privilege Tax. The tax rate is determined by the
company’s total income allocated to Alabama. The amount of tax is determined by
multiplying the taxpayer’s net worth in Alabama by that rate.
Municipal License or Privilege Taxes *
Municipalities may charge a license or privilege tax on net premiums received on
business written in the community not to exceed the following amounts. Net premiums
are gross premiums less returned premiums. See sections 11-51-120 and 121, Code of
Alabama, 1975.
The Alabama Department of Insurance does not administer or collect municipal taxes.
The Alabama League of Municipalities at (334)262-2566 or an individual municipality
may be able to assist you if you have questions concerning your municipal taxes.
Section 11-51-121, Code of Alabama, 1975
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Population of Municipalities
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Life and Casualty
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Less than 5,000
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$10 and $1 per 100 or major fraction thereof on business written in the previous
year
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5,000 to 10,000
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$15 plus as above
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10,000 to 50,000
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$20 plus as above
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50,000 or over
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$50 plus as above
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Section 11-51-120, Code of Alabama, 1975
Fire and Marine business, all municipalities 4% of net premiums.
* Municipal license fees/privilege taxes not allowable deductions from premium taxes.
Taxes, Fees and Other Charges
Payable to Commissioner of Insurance State of Alabama. Electronic payment may be remitted at https://al.accessgov.com/adoimain/Forms/Page/adoimain/adoi-examinerfees/0.
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Fees for admission
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500.00
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Issuance of original Certificate of Authority
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500.00
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Seal
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5.00
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Non-refundable application examination fee
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2,000.00
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Total fees for admission
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$3,005.00
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HMO application fee
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50.00
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HMO non-refundable application examination fee
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2,000.00
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Other Fees and Charges
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Filing HMO annual statement
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20.00
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HMO annual renewal of license
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200.00
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Annual renewal of license for insurance company
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500.00
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Reinstatement fee
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500.00
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Filing of annual statement
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25.00
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Examination of annual statement
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1,200.00
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Examination of quarterly financial statement
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100.00
|
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Examination of Market Conduct Annual Statement (MCAS)
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200.00
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Examination of Corporate Governance Annual Disclosure (CGAD)
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100.00
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Examination of Own Risk and Solvency Assessment (ORSA)
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500.00
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Examination of Insurance Data Security Certification
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250.00
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Examination of report of examination
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300.00
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Examination of annual statement - Mutual Aids, Fraternals
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400.00
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Examination of annual statement - HMO
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500.00
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Filing of amendment to Articles of Incorporation
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25.00
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Filing other charter documents or by-laws
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25.00
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Stock solicitation permit
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250.00
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For copies of documents, records on file, per page
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1.00
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For certificates under seal other than agent’s license
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5.00
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Accepting service of legal process by Commissioner of Insurance
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50.00
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Filing Fraternal annual statement
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10.00
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