First American Spatial Solutions Cross Licenses Tax-Compliance Data from ETM
—Partnership Expands Existing Capabilities for Insurance Industry—
December 3, 2009, AUSTIN, Texas
First American Spatial Solutions, a leader in spatial and natural hazard risk solutions and a member of The First American Corporation (NYSE: FAF) family of companies, and ETM, a leading provider of financial reporting and tax compliance services to insurers, announced today a cross-licensing agreement that enhances their tax-compliance data and reporting solutions for the insurance industry.
Under the agreement, First American Spatial Solutions will provide its real-time parcel-based geocoding technology to enhance ETM’s PosiTax product, while ETM will license its rate table information to First American Spatial Solutions in order to further enhance its premium tax solution.
“By combining our industry-leading spatial accuracy and property-level tax assignment databases with ETM’s rate tables, we are able to provide one of the most complete solutions available in the marketplace,” said Scott Little, vice president and general manager of First American Spatial Solutions. “With this agreement, we’re able to give insurers the tools and the power they need to pinpoint risk jurisdictions precisely for municipal taxes as well as the address and tax-rate data they need to comply with each state’s filing requirements.”
Most applications that utilize a “ZIP code only” approach to identifying tax jurisdictions will return incorrect results for as many as 40 percent of properties searched. With jurisdiction definitions differing nationwide and frequently changing, insurers need a property-based solution that they can trust to identify the correct jurisdictional assignment. ETM’s PosiTax uses spatial technology from First American to assign correct taxing jurisdictions to policy data at the property level. This enables insurers to accurately calculate geographically assigned premium taxes, while providing insurers with the necessary documentation to support municipal premium tax payments and avoid state penalties.
“Forming this agreement before the State of Kentucky’s bill HB 524 becomes effective on Jan. 1, 2010, will help the insurance industry tremendously,” said Larry Kane, ETM’s president. “HB 524 mandates the use of risk-location technology, verified by the Kentucky Office of Insurance, for locating risks that are subject to taxes or fees. PosiTax is already verified as compliant with HB 524 and our agreement with First American Spatial Solutions ensures that our technological capabilities will keep pace with similar mandates from other states.”
About First American Spatial Solutions
First American Spatial Solutions, a member of The First American Corporation (NYSE: FAF) family of companies, is a leader in property location information, analytics and geospatial services. Recognized for their accuracy and currency, the company’s solutions include the industry-leading PxPoint geocoder, multiple natural hazard products for risk management, up-to-date tax and municipal databases, and ParcelPoint, the nation’s largest digital land parcel database. More information can be found at www.faspatial.com.
ETM is a software and procedures-development firm that specializes in providing financial reporting and tax-compliance applications for insurers. ETM is dedicated to insurance financial processing and reporting, making its clients more efficient, consistently accurate, and uniformly compliant. For more information, please visit www.byetm.com.