This workflow is intended for use with Agency Information Manager (AIM) versions 6.4.1 and later. The purpose of this workflow is to show you how to process multi-state taxes in keeping with the Non-Admitted and Reinsurers’ Reform Act (NRRA) requirements. Of utmost concern is the ability to set the payable ID for all taxes to the home state of the submission in accordance with NRRA requirements, as well user's ability to manage the applicable tax rates.
Support for five rating rules has been added. Those rules are defined as follows:
- Blended – All home state premiums are taxed at the normal home state rates and any out of state premium is taxed at a special blended rate.
- Compact State: Members Only – The risk state tax rate applies to all risk states within the same compact, but no tax calculation will apply to risk states that are not a member of the home state’s compact.
- Compact State – The risk state tax rate applies to all risk states within the same compact, but a blended rate will apply to those risk states that are not a member of the home state’s compact.
- Home State – All taxes are calculated at the home state rate.
- Interstate – If the policy is a multistate policy, a different rate applies to the entire premium.
- Risk State – All states are taxed at their own home state rates. The default tax entity applies unless a third-party payable is designated in the State table for the home state.
Before you can utilize the NRRA workflow in AIM, you must configure Data Maintenance Utility (DMU). In the Multi-State Taxes NRRA topic in Data Maintenance Utility Help, we show you how to configure the State and Tax tables so that users can begin processing submissions and policies in accordance with NRRA guidelines.
The Quote/Bind Process has been modified with the addition of the Multi-State Tax Allocation dialog box.
In the topics listed below, we show you the NRRA workflow.
- Enter a New Home or Interstate Submission
- Edit a Multi-State Tax Allocation
- Enter a New Blended or Risk State Rule Submission
- Renewal Processing
- Endorsements and Cancellations
Click here to download the NRRA workflow for AIM versions 6.4.0 and earlier.