Below is the guidance from the annual statement instructions from both the life and health instructions.
Premium allocation ?
Life and Annuity Insurance
Allocation methodology allowed is determined as follows:
- For individual policies, allocate and report premium and other considerations to the jurisdiction based on the residence of the policyholder, insured or payer
- For group policies not provided by an employer, allocate and report premium and other considerations to the jurisdiction based on the residence of each group member or the Rule of 500
- For group policies provided by an employer, allocate and report premium and other considerations to the jurisdiction based on the residence or employment location of each covered group member, or the Rule of 500
Rule of 500 - A group policy covering less than 500 members may allocate all group premium to the state or territory where the greatest number of members reside or are employed (for employer groups) or to the situs of the contract
Premium allocation ?
Health Insurance
Allocation methodology allowed is determined as follows:
- For individual policies, allocate and report premium and other considerations to the jurisdiction based on the residence of the policyholder, insured or payer or on the situs of the contract
- For group policies not provided by an employer, allocate and report premium and other considerations to the jurisdiction based on the Rule of 500, or on the situs of the contract
- For group policies provided by an employer, allocate and report premium and other considerations to the jurisdiction based on the Rule of 500, location of employer or on the situs of the contract
Rule of 500 - A group policy covering less than 500 members may allocate all group premium to the state or territory where the greatest number of members reside or are employed (for employer groups) or to the situs of the contract
Thanks,
Lisa Mullen