Amended Insurance Premium Tax Act impacts unauthorized insurer placement filing and payments

Published November 20, 2023

Licensees who are involved with the placement of insurance with unauthorized insurers are advised of changes to the Insurance Premium Tax Act. Effective January 1, 2024, filing and payment of insurance premium tax for unauthorized insurer placements must be submitted online through eTaxBC.

An insured who takes out a contract of insurance with an unauthorized insurer is required under the Insurance Premium Tax Act to pay the insurance premium tax on that contract and make the required filings with the British Columbia Ministry of Finance Income Taxation Branch. The previously accepted Return of Unlicensed Insurance form will be removed from the Ministry of Finance website by December 31, 2023, and the previously accepted BC Financial Services Authority Placement of Insurance with Unauthorized Insurers Return form will also no longer be accepted after December 31, 2023.

More information about the updated filing and payment requirements, as well as enrollment for the eTaxBC online services, is available on the Government of BC’s website.

Licensees are reminded that before they proceed to conduct business with an unauthorized insurer, they must meet specific requirements under the Insurance Council Rules, Financial Institutions Act, and Insurer Exemption Regulation. Notice ICN-21-001 Use of Unauthorized Insurers outlines the current requirements for licensees when placing business with an unauthorized insurer.