12221-12222

REVENUE AND TAXATION CODE
SECTION 12221-12222




12221.  In the case of an insurer not transacting title insurance in
this State, the basis of the tax is, in respect to each year, the
amount of gross premiums, less return premiums, received in such year
by such insurer upon its business done in this State. "Gross
premiums" do not include premiums received for reinsurance and for
ocean marine insurance. Gross premiums of reciprocal or
interinsurance exchanges shall be determined as provided in Section
1530 of the Insurance Code. For purposes of the tax imposed by this
chapter, "gross premiums" shall be deemed to include home protection
contract fees defined in Section 12740 of the Insurance Code.




12222.  Funds accepted by a life insurer under an agreement which
provides for an accumulation of funds to purchase annuities at future
dates may be considered as "gross premiums received" either upon
receipt or upon the actual application of such funds to the purchase
of annuities. However, any interest credited to funds accumulated
while under the latter alternative shall also be included in "gross
premiums received," and any funds taxed upon receipt, including any
interest later credited thereto, shall not be subject to taxation
upon the purchase of annuities. Each life insurer shall signify on
its premium tax return covering premiums for the calendar year 1957
its election between such two alternatives. Thereafter an insurer
shall not change such election without the consent of the
commissioner. Any such funds taxed as "gross premiums" shall, in the
event of withdrawal of the funds before their actual application to
the purchase of annuities, be eligible to be included as "return
premiums" if eligible therefor under the provisions of Section 28 of
Article XIII of the Constitution.