North Dakota Century Code Title 26.1. Insurance § 26.1-38.1-10. Credits for assessments paid--Tax offsets

1. A member insurer may offset against its premium tax liability to this state an assessment described in section 26.1-38.1-06 to the extent of twenty percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. In the event a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.

2. A member insurer that is exempt from taxes referenced in subsection 1 may recoup that member insurer's assessments by a surcharge on that member insurer's premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. Amounts recouped may not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. If a member insurer collects excess surcharges, the insurer shall remit the excess amount to the association, and the excess amount must be applied to reduce future assessments in the appropriate account.

3. Any sums that are acquired by refund, pursuant to section 26.1-38.1-06, from the association by member insurers, and which have been offset against premium taxes as provided in subsection 1, must be paid by the member insurers to this state in such manner as the tax authorities may require. The association shall notify the commissioner that such refunds have been made.