How are premium taxes imposed on insurers in relation to risks located in South Carolina?

Premium taxes are imposed on insurers based on the business they do in relation to risks located in South Carolina, and this applies to the insurer regardless of whether they are an admitted or non-admitted insurer. In South Carolina, all insurers that provide coverage for risks in the state are subject to premium taxes. This means that the tax is levied on the insurer’s premiums received from policyholders for insurance products that cover South Carolina risks, making it a consistent regulatory requirement for all insurers operating within the state's jurisdiction.

Insurers collect premiums from consumers, but they are responsible for remitting the premium taxes to the state. This regulatory approach ensures that the state receives funding for various programs, including those related to the insurance sector. By requiring all insurers to pay these taxes, the state maintains a level playing field, promoting fairness in the insurance market regardless of the insurer's admitted status.

While other options might suggest that the tax burden either falls on brokers or is limited to specific types of insurers, they do not capture the overarching principle that the premium taxes are collectively imposed on all insurers participating in the South Carolina market, thus emphasizing the accountability of insurers in this regulatory framework.