California Form 570 - Nonadmitted Insurance Tax Return - 2015 Page 3
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42015 Instructions for Form 570
Nonadmitted Insurance Tax Return
References in these instructions are to the California Revenue and Taxation Code (R&TC) and the California Insurance Code.
General Information
D When and Where to File
the state to which the greatest percentage
of the insured’s taxable premium for that
File Form 570 on or before the first day of the
California conforms to the Nonadmitted
insurance contract is allocated.
third month following the close of any calendar
and Reinsurance Reform Act (NRRA) which
• Home state insured or “home state insured
quarter during which a nonadmitted insurance
authorizes the collection of tax on 100% of
applicant” – A person whose home state is
contract took effect or was renewed:
the premiums of California home state insured
California and who has received a certificate
policies. Thus, if a person is determined to be a
Contract effective date
Return due date
or evidence of coverage as set forth in
California home state insured, then all premiums
January - March
June 1
Section 1764 of the Insurance Code or a
related to all insurance policies obtained from a
April - June
September 1
policy as issued by an eligible surplus line
nonadmitted insurer are subject to tax, as long
July - September
December 1
insurer, or a person who is an applicant.
as the premiums are for policies related to risks
October - December
March 1
• Multistate risk – A risk covered by a
within the United States. This is a change from
nonadmitted insurer with insured exposures in
Mail Form 570 and payment to:
when California only taxed premiums related
more than one state.
NONADMITTED INSURANCE TAX MS F182
to California risk. The NRRA only allows one
FRANCHISE TAX BOARD
state to tax a home state insured, so proration
A Purpose
PO BOX 942867
of premiums among the states for taxation no
SACRAMENTO CA 94267-0651
Use Form 570, Nonadmitted Insurance Tax
longer occurs.
Return, to determine the tax on premiums paid or
To submit payment electronically, see the Specific
For more information, go to ftb.ca.gov and
to be paid to nonadmitted insurers on contracts
Instructions for line 12.
search for nonadmitted insurance tax.
covering risks. Also, use Form 570 to file an
To receive nonadmitted insurance tax information
amended return. See General Information E,
E Amended Returns
by email, go to ftb.ca.gov and search for
Amended Returns, for more information.
subscription services.
File an amended Form 570 to claim a refund or
A policyholder may have to file up to four
correct an error on the original return.
The total gross premium paid, or to be paid,
Form 570 tax returns in one year if the
for all nonadmitted insurance placed in a single
Check the “Amended” box at the top of the form.
policyholder purchases nonadmitted insurance
transaction with one underwriter or group of
Attach a copy of the original return behind the
contracts in each calendar quarter.
underwriters, whether in one or more policies,
amended return and write “copy” in red across
in that calendar quarter during which the taxable
the face of the original return. When completing
B Who Must Pay Nonadmitted
insurance contract(s) took effect or were renewed,
line 1 through line 15 of the amended return, use
Insurance Tax
is now the entire gross premium charged on all
the amounts that should have been reported on
nonadmitted insurance for the California home
the original return.
The tax is imposed on a home state insured who
state insured. Enter only premiums for policies
independently purchases or renews an insurance
Amended returns must be filed within four years
related to risks within the U.S.
contract during the calendar quarter from an
of the original due date or within one year from
insurer, including wholly-owned subsidiaries,
Do Not Round Cents to Dollars – On this form,
the date of the overpayment, whichever period
not authorized to transact insurance business in
do not round cents to the nearest whole dollar.
expires later.
California.
Enter the amounts with dollars and cents.
Attach copies of all contracts for changes to
If you do not know if the insurer is authorized
correct an error on the original return or to claim
Definitions
to conduct business in California, call the FTB
a refund.
• Home state – The state where the insured
Nonadmitted Insurance Desk at 916.845.7448.
Do not file an amended return to claim returned
maintains its principal place of business, or if
The tax will not be imposed on any of the following:
premiums. See the Specific Instructions for line 5.
individual, the individual’s principal residence;
• Insurance coverage for which a tax on the
if 100% of the insured risk is located in a
F Third Party Designee
gross premium is due or has been paid by
state outside the insured’s principal place
surplus line brokers pursuant to Insurance
of business or principal residence, then it is
If the entity wants to allow the FTB to discuss its
Code Section 1775.5 (surplus lines tax).
where the greatest percent of the insured’s
2015 return with the paid preparer who signed
• Gross premiums on businesses governed by
taxable premium for that insurance contract is
it, check the “Yes” box in the signature area of
provisions of Insurance Code Section 1760.5
allocated.
the return. This authorization applies only to the
(reinsurance of the liability of an admitted
• Principal place of business – The state
individual whose signature appears in the “Paid
insurer and marine, aircraft, and interstate
where the insured maintains its headquarters
Preparer’s Use Only” section of the return. It does
railroad insurance).
and where the insured’s high-level officers
not apply to the business, if any, shown in that
• Insurance coverage for which a tax on the
direct, control, and coordinate the business
section.
gross premium is due or has been paid by risk
activities; or if the insured’s high-level officers
If the “Yes” box is checked, the entity is
retention groups pursuant to Insurance Code
direct, control, and coordinate the business
authorizing the FTB to call the paid preparer
Section 132.
activities in more than one state, the state in
to answer any questions that may arise during
Agents or brokers with a valid power of attorney
which the greatest percentage of the insured’s
the processing of its return. The entity is also
to file a return on behalf of the insured must enter
taxable premium for that insurance contract
authorizing the paid preparer to:
the requested information in the space below
is allocated; or if the insured maintains its
• Give the FTB any information that is missing
line 15 on Side 1 of Form 570.
headquarters or the insured’s high-level
from the return.
officers direct, control, and coordinate the
• Call the FTB for information about the
C Tax Rate
business activities outside the U.S., the
processing of the return or the status of any
state to which the greatest percentage of the
The tax rate is 3%. This rate is applied to the
related refund or payments.
insured’s taxable premium for that insurance
gross premium paid or to be paid, less premiums
• Respond to certain FTB notices about math
contract is allocated.
returned because of cancellation or reduction of
errors, offsets, and return preparation.
• Principal residence – The state where the
premium on which a tax has been paid. Do not
• The entity is not authorizing the paid preparer
insured resides for the greatest number of
include a stamping fee.
to receive any refund check, bind the entity to
days during a calendar year; or if the insured’s
anything (including any additional tax liability),
principal residence is located outside the U.S.,
or otherwise represent the entity before
the FTB.
Form 570 Instructions 2014 Page 1
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