Alabama

The Alabama module may be used to allocate premiums covering risks within Alabama to the correct municipality for taxation. Please note that Alabama uses multiple premium type codes to distinguish between Fire and Marine and Other than Fire and Marine.

Source ASCII File Layout

Premium Type Codes used in the Alabama ASCII file layout

The Alabama municipal return requires a breakout of fire and non-fire premiums.

The Alabama module groups allocated premiums as follows:

• If the policy has a Premium Type Code of "F" then the premium is grouped into the fire category.
• All other Premium Type Codes are grouped into the non-fire category.

Alfa Mutual Court Decision

In Alfa Mutual Ins. Co v. City of Mobile, (Ala S. Ct., Dkt. No. 1051747, 0912812007), the Alabama Supreme Court held that insurance companies issuing a variety of policy types (which included fire insurance policies) would not necessarily pay the 4% rate applicable to fire and marine companies. Instead, it is possible that such a company could have all of its premiums subject to the 1% rate instead.

The Premium Pro Municipal software calculates rates based on the input schedule. The rate is 1% for the premiums included in the Total Non-Fire Premiums column and a 4% rate for the premiums included in the Total Fire Premiums column.  Depending on your interpretation of the Alabama Supreme Court's decision, you need to assign the proper premium type code to your policies before processing in Allocator.  Otherwise, you may need to make adjustments in the Premium Pro Municipal input schedule after importing the *.imp file created by Allocator.

Export to Premium Pro Municipal

To export allocation data to Premium Pro Municipal, follow these steps:

1. Select Export from the Tools menu.
2. In the state selection drop-down box, select "Alabama".
3. Select the "Municipal Import File (*.imp)" export option.
4. Select the "Export By Municipal Code" or "Export By Municipal Name" option. NOTE: Remember which option you choose, so that you can select the same option when importing the data into Municipal.
5. Click the "Browse" button to select a file name for the exported data and the folder you want to export the file to.
6. Click the "Export" button.

Following the steps above will create a Municipal Import file (*.imp). The contents of this file can be imported into Premium Pro Municipal by following these steps:

1. Load the Municipal module in Premium Pro Enterprise and select the appropriate company.
2. Select the File Menu, select Import, and select ASCII.
3. Select the import option you would like to use. This corresponds to the export option you chose in Step 4 above.
4. Click the "Select File" button to select the file you wish to import. This should be the Municipal Import file (*.imp) that was created above.
5. Click the "Import" button to import the contents of the selected file.

Following the steps above will import the data and generate calculations.

Additional Information

For more information regarding Alabama municipal taxation, please see the Premium Pro Municipal help files and return instructions.