Help us improve in just 2 minutes—share your thoughts in our reader survey.
501(c)(15)
501(c)(15) is an Internal Revenue Service (IRS) tax exemption status that applies to "small insurance companies or associations." These entities are generally organized on a mutual basis and participation is often restricted to individuals of a particular county. However, small stock-owned insurance companies may also qualify. The majority of these organizations offer property damage coverage, but the 501(c)(15) designation may also include certain burial and funeral benefit associations and marine insurance organizations.[1][2]
In order to qualify as a stock-owned insurance company, 50 percent of the organization's annual total revenue must consist of member premiums and total annual revenue must not exceed $600,000. In order to qualify as a mutual insurance company, 35 percent of the organization's annual total revenue must consist of member premiums and total annual revenue must not exceed $150,000.[2]
Examples
- Kenosha County Mutual Insurance Company (Kenosha, Wis.)
- Anthracite Mutual Fire Insurance Company (Millville, Pa.)
- Southeast Mutual Insurance Company (Burlington, Wis.)
- Rice County Mutual Insurance Company (Fairbault, Minn.)
- Claremont Farmers Mutual Fire Insurance Company (Kasson, Minn.) [3]
See also
External links
Footnotes
- ↑ IRS.gov, "L. IRC 501(c)(15) - small insurance companies or associations," accessed September 22, 2015
- ↑ 2.0 2.1 Internal Revenue Manual, "Chapter 76. exempt organizations examination guidelines, Section 23. small insurance companies or associations IRC section 501(c)(15)," accessed September 22, 2015
- ↑ National Center for Charitable Statistics, "Organizations by IRS subsection 501(c)(15)," accessed September 21, 2015
| |||||||
