Section 316-24-347 - SPECIAL APPORTIONMENT RULES; ALL TAX YEARS; INSURANCE COMPANIES347.01Unitary Group. An insurance company cannot be included in a unitary group when the other members of the unitary group are not insurance companies. A unitary group of insurance companies cannot include a corporation that is not an insurance company.347.02In General.347.04 governs the apportionment of income of an insurance company that has income from insuring property or risks both within and outside Nebraska.347.03Definitions. The following definitions apply to the terms used in the apportionment factor descriptions in this regulation. 347.03A Direct premiums are all premiums received for insurance other than reinsurance premiums.347.03B Insurance company is a company engaged in the business of insurance as defined in Neb. Rev. Stat. § 44-102 which has a certificate of authority to do business in Nebraska under Neb. Rev. Stat. § 44-105. A company that insures risks but is not required to have a certificate of authority to sell insurance in Nebraska is not an insurance company under this regulation and must be included in a unitary group with other companies that are not insurance companies.347.03C Premiums are the consideration paid to insurance companies for insurance and includes policy fees, assessments, dues, or other similar payments, except premiums on all annuity contracts and pension, profit-sharing, individually sponsored retirement plans, and other pension plan contracts which are described in IRC § 818(a).347.03D Quota-share reinsurance is reinsurance of a certain percentage of all or certain parts of the business being reinsured.347.03E Reinsurance premiums means premiums which are paid by an insurer to a third party to insure it against toss or liability by reason of the original insurance.347.03F Schedule T is part of the annual statement prescribed by the National Association of Insurance Commissioners, which is required to be filed annually with the various state insurance departments.347.04Sales Factor. The numerator of the sales factor of an insurance company or a unitary group of insurance companies is direct premiums received on property or risks in Nebraska. The denominator is direct premiums received on property or risks everywhere.347.04A Reinsurance premiums are included in the numerator and denominator only when more than one-third of the premiums received by an insurance company or a unitary group of insurance companies consist of premiums received for reinsurance accepted. If more than one-third of the premiums received by an insurance company or a unitary group of insurance companies consist of premiums received for reinsurance accepted, all premiums for reinsurance are included in the denominator. 347.04A(1) Premiums received for reinsurance accepted will be included in the numerator if it can be established or reasonably assumed that the underlying risks are in Nebraska.347.04A(2) In the case of reinsurance accepted for which the location of the underlying risk can neither be established nor reasonably assumed, premiums received will be included in the numerator if Nebraska is the state of commercial domicile of the ceding company, except: 347.04A(2)(a) If more than half of the ceding company's premiums written are direct premiums, reinsurance premiums received with respect to quota-share will be sourced in proportion to the ceding company's Annual Statement -- Schedule T allocation of its direct premiums written.347.04B All transactions between corporate members of the same unitary group are eliminated prior to making the determinations outlined in this regulation.316 Neb. Admin. Code, ch. 24, § 347
Neb. Rev. Stat. § 77-2734.15 December 27, 2015.Amended effective 7/5/2020