State, county and municipal taxes, licenses and fees based upon premiums.
Fire Patrol assessments.
Payments to State Industrial (or other) Commissions for administration of Worker's Compensation or other State Benefit Acts (including assessments for administering Financial Responsibility Laws) regardless of basis of assessment.
Net payments to State Security Funds, Reopened Case Funds, Second Injury Funds and other State Funds, when construed by the company as operating expenses, regardless of basis of assessment.
Exclude:
Allowances for taxes under reinsurance contracts (see Commission and Brokerage-Reinsurance Assumed and Ceded).
Include:
Agents' Licenses.
Certificates of authority, compliance, deposit, etc.
Filing fees.
Fees and expenses of examination by insurance departments or other governmental agencies.
Exclude:
Items includable in Claim Adjustment Services.
Include:
Old age benefit taxes.
Unemployment insurance taxes.
Exclude:
Payroll taxes includable in Real Estate Taxes.
Include:
Qualifying bond premiums.
Statement publication fees.
Advertising required by law.
Personal property taxes.
State income taxes.
Capital stock taxes.
Business or corporation licenses or fees (not includable under a. or b. of this subparagraph).
Marine profits taxes.
Documentary stamps on reinsurance.
Any other taxes not assignable under a., b., and c. of this subparagraph and not otherwise excluded.
Exclude:
Cost of advertising required by law where more than minimum space required to comply with the law is taken. Such expense shall be included in Advertising.
Real estate taxes, licenses and fees (see Real Estate Taxes). Items includable in Claim Adjustment Services.
Fees for automobile license plates (see Travel and Travel Items)
Federal and foreign income tax.
Sales taxes, etc., included on invoices of vendors. Such taxes are to follow allocation of cost of items purchased.
Include:
Salaries, wages and other compensation of janitors, caretakers, maintenance persons and agents paid in connection with owned real estate.
Cost of operating and maintaining owned real estate.
Cost of insurance in connection with owned real estate.
Cost of advertising in connection with owned real estate.
Include:
Taxes, licenses and fees on owned real estate.
Include: Expenses not listed as includable in other operating expense classifications, and not analogous thereto. Specifically, the following shall be included:
Cost of tabulating service when such service is rendered by outside organizations.
Amounts received and handled in accordance with the instruction “Income from Special Services".
Donations to organized charities.
Differences between actual amounts paid, and amounts apportioned in accordance with the instruction “Joint Expenses".
Ins 6.30(1)(b)22.
22. General Instructions in Connection With Operating Expense Classifications
Whenever personnel or facilities are used in common by two or more companies, or whenever the personnel or facilities of one company are used in the activities of two or more companies, the expenses involved shall be apportioned in accordance with the regulations relating to Joint Expenses, and such apportioned expenses shall be allocated by each company to the same operating expense classifications as if the expenses had been borne wholly. Any difference between the actual amount paid, and the amount of such apportioned expenses shall be included in the operating expense classification “Miscellaneous".
This instruction does not apply to the allocation of the following, which are covered by separate instructions herein:
Reinsurance commission and allowances (see Commission and Brokerage-Reinsurance Assumed and Ceded).
Commission and brokerage paid to managers and agents (see Commission and Brokerage-Direct).
Allowances to managers and agents (see Allowances to Managers and Agents).
Expenses allocable in accordance with the instruction “Income from Special Services".
Whenever expenses are paid by one company for account of another, the payments shall not appear among the expenses reported by the former, and shall be included by the latter in the same expense classifications as if originally paid by it.
Whenever an insurance company receives compensation for sales or services, such as loss adjustment or inspection not related to policies written by the company, and such compensation is not calculated as a joint expense reimbursement, the amount thereof shall be included in the operating expense classification “Miscellaneous". Where an insurance company pays the compensation, allocation shall be made to the expense classification dictated by the nature of the expense.
This instruction is of limited applicability and does not apply to the allocation of the following, which are covered by separate instructions herein:
Reinsurance commission and allowances (see Commission and Brokerage-Reinsurance Assumed and Ceded).
Expenses incurred for the benefit of companies in the same group or fleet. Such expenses are covered by the instruction “Joint Expenses".
The lists of expenses includable in the operating expense classifications are representative and do not exclude analogous items which are omitted from the lists.
Ins 6.30 Note
The references are to subparagraphs in paragraph (b) of subsection (1).
Ins 6.30 Note
Accident and loss prevention billed specifically — 6
Ins 6.30 Note
Accident and loss prevention literature — 6
Ins 6.30 Note
Accident and loss prevention organizations — 5
Ins 6.30 Note
Accident insurance for employees — 9-a
Ins 6.30 Note
Accounting societies, dues and subscriptions to — 12
Ins 6.30 Note
Actuarial societies, dues and subscriptions to — 12
Ins 6.30 Note
Adding machine tape — 15
Ins 6.30 Note
Adjusters — 1-a
Ins 6.30 Note
Adjustment services — 1
Ins 6.30 Note
Advertising, operating expense classification — 4
Ins 6.30 Note
Advertising, help wanted — 9-b
Ins 6.30 Note
Advertising in connection with owned real estate — 19
Ins 6.30 Note
Advertising required by law when only the minimum space required by law is taken — 18-d
Ins 6.30 Note
Advertising required by law when more than the minimum space required by law is taken — 4
Ins 6.30 Note
Advisory organizations — 5
Ins 6.30 Note
Agents' allowances, reimbursements and payments computed as percentage of premiums — 2-a
Ins 6.30 Note
Agents' allowances, reimbursements and payments not computed as percentage of premiums — 3
