In Illinois, what is the maximum amount an insurer can assess in premium tax?

In Illinois, the premium tax rate that insurers must pay is established by state regulations, and it is set at 1.75% of the premiums collected. This rate applies to various lines of insurance, ensuring that all insurers contribute to the state's revenues from the business they conduct within Illinois. The significance of the 1.75% rate is rooted in the state's approach to regulating insurance and ensuring that proper funding is available for public services and oversight functions associated with the insurance industry.

The other rates listed do not reflect the established statutory requirement. For instance, while some insurance-related fees and taxes may vary in different jurisdictions or be subject to change, the standard rate specified for Illinois has been consistently recognized as 1.75%. This is particularly relevant for professionals in the insurance field, as it affects financial planning and tax obligations for insurance entities operating within the state. Understanding this tax structure is crucial for compliance and financial reporting.