About Retaliatory Fees
The Pennsylvania Insurance Department enforces retaliatory provisions for out-of-state insurance companies seeking to operate within our commonwealth. Retaliatory laws deter any state from treating out-of-state insurers unfairly.
If another state imposes stricter or higher fees, taxes, or requirements on Pennsylvania-based insurers, Pennsylvania will impose equivalent measures on insurers from that state.
Details are available in the Act of May 17, 1921, as revised.
General Requirements for Admission and Licensing
Minimum Required Fees
Minimum fees are chargeable upon granting a company license. All fees are minimum and subject to retaliatory increase or other charges (upon an aggregate basis, not fee for fee basis).
Minimum Licensing Fees:
- $300 charter filing fee
- $750 fee per financial statement filed
- $100 company license fee
- $100,000 statutory deposit due to surety business
- The statutory deposit is only applicable for property and casualty companies with surety business.
Annual Renewal Fees:
- $750 filing fee per financial statement
- $100 to renew a Certificate of Authority
Additional Requirements
For companies with surety business, a $100,000 statutory deposit is due to the surety business only.
Minimum financial requirements are based on the classes of insurance that the company, such as a stock insurance company or mutual company, is chartered to transact.
For life and health insurance companies, Pennsylvania requires a minimum capital of $1,000,000 and minimum surplus of $500,000.
Companies seeking to transact accident and health insurance require an additional capital of $100,000 and surplus of $50,000.
Every title insurance company shall have a minimum capital of $250,000, which shall be paid-in and maintained. Additionally, paid-in initial surplus must equal at least 50% of the company’s capital.
All other charges, including capital stock tax and fire marshal's tax, do not apply under Pennsylvania law. No provisions exist for state kinds, basis of computation or dates payable.
Premium Taxation
A tax of 2% is assessed upon gross premiums received from business transacted within Pennsylvania annually, whether received in money or in the form of notes, credits, or any other substitute for money. These premiums are subject to tax whether the payment was collected in the Commonwealth of Pennsylvania or elsewhere.
For companies seeking to transact title insurance or life and health insurance, a 2% tax is similarly assessed upon annuity considerations received from business transacted within Pennsylvania each year.
Companies may deduct premiums returned on policies cancelled or not taken or premiums actually received from reinsurance.
Additional Deductions
Life insurance companies may also deduct dividends declared and actually used by policyholders in payment of renewal premiums.
A stock company with participating features in addition to the aforesaid deductions may deduct that portion of the premiums returned to the policyholders.
Mutual companies, associations, and exchanges may deduct that portion of the advance premiums or deposits returned to members upon the expiration or termination of their contracts.
Note: Premium tax data is supplied by the Pennsylvania Department of Revenue, not the Pennsylvania Insurance Department.
Tax Filing Requirements
Tax statements must be submitted to the Pennsylvania Department of Revenue by April 15, with full payment due on that date.
Contact Us
Contact us for additional questions, or to request physical forms and instructions.
- Phone: (717) 783-2142
- Email: ra-in-company@pa.gov