General Information For Rct-121b (Page 5 of 6) in pdf

RCT-121B – Line-by-Line Instruction

RCT-121B-I (11-13)

Page 5 of 6

RCT-121B should be completed in the following order:

Step 1 - Complete the taxpayer information and any applicable questions at the top of Page 1.

Step 2 - Indicate the type of insurance company on Page 1, Foreign Life or Foreign Title. This is based on the company’s original registra-

tion with the Pennsylvania Insurance Department. This information is required.

Step 3 - Enter the Revenue ID number and other taxpayer information in the designated fields at the top of each page.

Step 4 - Complete Page 2, Lines 1 through 15.

Step 5 - Complete Page 3, Retaliatory Worksheet.

Step 6 - Complete Page 2, Lines 16 through 18.

Step 7 - Complete Page 1, Tax Liability, Payment and Overpayment section.

Step 8 - Complete the corporate officer information section, sign and date at the bottom of Page 1.

Step 9 - Complete the preparer information section, sign and date at the bottom of Page 2, if applicable.

Step 10 - Mail the completed report and any supporting schedules to the PA Department of Revenue.

Page 2 - Calculation of Taxable Premiums:

Foreign title insurers will use Lines 1 through 5.

Foreign life insurers will use Lines 6 through 13.

Title Insurance

Line 1 - Direct Premiums

Enter the gross direct premiums received less cancellations and returned premiums from the Pennsylvania business page.

Line 2 - Approved Attorney Fees:

Calculation of Title Insurance Company Gross Premiums

Note: The approved attorney fee schedule will be provided by the Pennsylvania Insurance Department.

A. Use the following definitions when referring to this section:

Excess Fee – The difference between the all-inclusive fee for the total transaction and the all-inclusive fee for the maximum cover-

age specified in the approved attorney fee schedule.

B. Gross premiums for all title insurance companies subject to gross premiums tax must be calculated using the approved attorney fee

schedule provided by the Pennsylvania Insurance Department. If a title insurance policy is issued under the all-inclusive fee sched-

ule approved by the Pennsylvania Insurance Department, the taxable gross premium shall be that portion of the all-inclusive fee that

is equivalent to the fee that would be charged under the approved attorney fee schedule for the same policy coverage.

C. The taxable premium for policies that are written in excess of the maximum liability coverage amount specified in the approved attor-

ney fee schedule must be calculated as follows:

a. If the title insurance policy is written under the approved attorney system, the taxable premium is the entire fee.

b. If the title insurance policy is written under the all-inclusive system, the taxable premium is the sum of:

i. The approved attorney fee for the maximum liability coverage specified in the approved attorney fee schedule (must be

attached) and;

ii. The excess fee.

D. A title insurance company must calculate the amount of its taxable premiums on the basis of the number of policies and the total

liability covered by such policies within the liability ranges as prescribed in the approved attorney fee schedule then in effect. A title

insurance company must submit a schedule setting out the relevant data by policy coverage ranges and calculating the taxable gross

premiums as indicated. This schedule must be attached to the title insurance company’s gross premiums tax report.

Line 3 - Dividends to Policy Holders

Enter zero; title companies do not have dividends.

Line 4 - Other deductions (Not applicable)

Line 5 - Taxable Title Premiums

Enter the difference of Line 1 or Line 2 minus Lines 3 and 4.

Life Insurance

Line 6 - Gross Life Premiums (Direct Written Basis)

Enter the total life premiums from the Pennsylvania business page.

Line 7 - Enter the dividends to policy holders from the Pennsylvania business page.

Line 8 - Enter any other deductions. A schedule detailing all other deductions must be provided.

Line 9 - Taxable Life Premiums

Enter the difference of Line 6 minus Lines 7 and 8.

Accident and Health Insurance

Line 10 - Gross Direct Accident and Health Premiums

Enter the total accident and health premiums from the Pennsylvania business page.

Line 11 - Enter the dividends to policy holders from the Pennsylvania business page.

General Information For Rct-121b Page 5

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