A cash refund of premium tax may be made to an insurance
company that has paid a premium tax payment or prepayment and demonstrates an
inability to recoup the funds paid via a credit, provided that the division
determines that a refund is appropriate. A claim for refund is a formal request
made by the insurance company or its successor in interest to the division for
repayment of premium tax prepayments that were paid with the insurance
company's previously filed tax return. The claim for refund shall not be filed
with a premium tax prepayment, annual tax payment, or with other documents or
forms submitted to the division.
(1)
Eligibility criteria. Upon the written
application of an
insurance company or its successor in interest, the division shall authorize
the department of revenue to make a cash refund to an insurer if:
a. The insurance company is subject to an
order of liquidation or equivalent order issued by a court of competent
jurisdiction; or
b. The insurance
company has not written any business in the state of Iowa for five years;
or
c. The insurance company's
certificate of authority is voluntarily or involuntarily surrendered or
terminated; upon application for a refund, the company shall be prohibited from
applying for readmission in Iowa for at least five years; and
d. The insurance company has no insurer
within its holding company which could utilize the credit.
(2)
Application procedure.
An insurance company may file a claim for a cash refund with the division by
stating in detail the reasons and facts and including supporting documents with
the claim for a cash refund. These documents shall include but not be limited
to:
a. A written request applying for a cash
refund and identifying the address where the cash refund should be
mailed;
b. A copy of the tax return
from which the premium tax credit originated;
c. A copy of the liquidation order or other
documentation demonstrating that the insurance company's certificate of
authority has been surrendered and that the company is prohibited from applying
for admission in Iowa for at least five years; and
d. A certification from the chief executive
officer stating that the company has no plans for writing business in the state
of Iowa and agrees to notify the division before writing any business in this
state if the claim for refund is made pursuant to
5.42(1)"b."
(3)
Appeals. If the claim
for refund is denied and the applicant wishes to appeal the denial, the
division will consider an appeal to be timely if filed not later than 30 days
following the date of denial.
(4)
Statute of limitations. Upon meeting the eligibility criteria
outlined in 5.42(1), an insurance company has up to five years to file an
application for a refund. A refund will not be authorized if an
application is
not made within this time frame.
This rule is intended to implement Iowa Code section
432.1(6).
