With apologies to Benjamin Franklin, nothing is certain in the insurance business except premium taxes. While many companies view premium taxes as simply a given 2% state levy on gross revenues, others are taking a closer look them. In reality, that 2% is a rough average. Premium tax rates can differ from state to state by as much as 3% or more.
What makes this more than just a bit of trivia with which to bore your non-insurance friends is the fact that companies legally domiciled in states with relatively high premium tax rates (states with rates above the 2% national average) also pay higher rates in other states than do companies domiciled in Continue reading