685. (a) When by or pursuant to the laws of any other state or
foreign country any taxes, licenses and other fees, in the aggregate,
and any fines, penalties, deposit requirements or other material
obligations, prohibitions or restrictions are or would be imposed
upon California insurers, or upon the agents or representatives of
those insurers, that are in excess of the taxes, licenses and other
fees, in the aggregate, or that are in excess of the fines,
penalties, deposit requirements or other obligations, prohibitions,
or restrictions directly imposed upon similar insurers, or upon the
agents or representatives of those insurers, of that other state or
country under the statutes of this state, so long as the laws of the
other state or country continue in force or are so applied, the same
taxes, licenses and other fees, in the aggregate, or fines,
penalties, deposit requirements or other material obligations,
prohibitions, or restrictions, of whatever kind, shall be imposed
upon the insurers, or upon the agents or representatives of those
insurers, of the other state or country doing business or seeking to
do business in California. Any tax, license or other fee or other
obligation imposed by any city, county, or other political
subdivision or agency of the other state or country on California
insurers or their agents or representatives shall be deemed to be
imposed by that state or country within the meaning of this article.
(b) On and after January 1, 1994, and before January 1, 1995,
every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(c) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(d) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (b) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
685.1. This article shall not apply as to personal income taxes,
nor as to ad valorem taxes on real or personal property nor as to
special purpose obligations or assessments heretofore imposed by
another state or foreign country in connection with particular kinds
of insurance, other than property insurance; except that deductions,
from premium taxes or other taxes otherwise payable, allowed on
account of real estate or personal property taxes paid shall be taken
into consideration in determining the propriety and extent of
retaliatory action under this article.
685.2. For the purposes of this article the domicile of an alien
insurer, other than insurers formed under the laws of Canada, shall
be that state in which is located its principal place of business in
the United States.
In the case of an insurer formed under the laws of Canada or a
province thereof, its domicile shall be deemed to be that province in
which its head office is situated.
685.3. To the extent permitted by the California Constitution there
is hereby imposed upon the commissioner the duty to enforce Section
685. It shall be the duty of the commissioner to initiate the
enforcement and execution of Section 685 in respect to all matters
which by the California Constitution or laws of this state require
further or final action by other officials of this state. In respect
to any matter initiated by the commissioner, it shall be the duty of
the Board of Equalization and the Controller to complete the
enforcement and execution of Section 685 in respect to that matter
within the scope of the duties and powers of each as set forth in the
California Constitution and laws of this state.
685.4. The provisions of this article shall also be applicable to
reciprocals or interinsurance exchanges and fraternal benefit
societies.
685. (a) When by or pursuant to the laws of any other state or
foreign country any taxes, licenses and other fees, in the aggregate,
and any fines, penalties, deposit requirements or other material
obligations, prohibitions or restrictions are or would be imposed
upon California insurers, or upon the agents or representatives of
those insurers, that are in excess of the taxes, licenses and other
fees, in the aggregate, or that are in excess of the fines,
penalties, deposit requirements or other obligations, prohibitions,
or restrictions directly imposed upon similar insurers, or upon the
agents or representatives of those insurers, of that other state or
country under the statutes of this state, so long as the laws of the
other state or country continue in force or are so applied, the same
taxes, licenses and other fees, in the aggregate, or fines,
penalties, deposit requirements or other material obligations,
prohibitions, or restrictions, of whatever kind, shall be imposed
upon the insurers, or upon the agents or representatives of those
insurers, of the other state or country doing business or seeking to
do business in California. Any tax, license or other fee or other
obligation imposed by any city, county, or other political
subdivision or agency of the other state or country on California
insurers or their agents or representatives shall be deemed to be
imposed by that state or country within the meaning of this article.
(b) On and after January 1, 1994, and before January 1, 1995,
every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(c) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(d) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (b) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
685.1. This article shall not apply as to personal income taxes,
nor as to ad valorem taxes on real or personal property nor as to
special purpose obligations or assessments heretofore imposed by
another state or foreign country in connection with particular kinds
of insurance, other than property insurance; except that deductions,
from premium taxes or other taxes otherwise payable, allowed on
account of real estate or personal property taxes paid shall be taken
into consideration in determining the propriety and extent of
retaliatory action under this article.
685.2. For the purposes of this article the domicile of an alien
insurer, other than insurers formed under the laws of Canada, shall
be that state in which is located its principal place of business in
the United States.
In the case of an insurer formed under the laws of Canada or a
province thereof, its domicile shall be deemed to be that province in
which its head office is situated.
685.3. To the extent permitted by the California Constitution there
is hereby imposed upon the commissioner the duty to enforce Section
685. It shall be the duty of the commissioner to initiate the
enforcement and execution of Section 685 in respect to all matters
which by the California Constitution or laws of this state require
further or final action by other officials of this state. In respect
to any matter initiated by the commissioner, it shall be the duty of
the Board of Equalization and the Controller to complete the
enforcement and execution of Section 685 in respect to that matter
within the scope of the duties and powers of each as set forth in the
California Constitution and laws of this state.
685.4. The provisions of this article shall also be applicable to
reciprocals or interinsurance exchanges and fraternal benefit
societies.
685. (a) When by or pursuant to the laws of any other state or
foreign country any taxes, licenses and other fees, in the aggregate,
and any fines, penalties, deposit requirements or other material
obligations, prohibitions or restrictions are or would be imposed
upon California insurers, or upon the agents or representatives of
those insurers, that are in excess of the taxes, licenses and other
fees, in the aggregate, or that are in excess of the fines,
penalties, deposit requirements or other obligations, prohibitions,
or restrictions directly imposed upon similar insurers, or upon the
agents or representatives of those insurers, of that other state or
country under the statutes of this state, so long as the laws of the
other state or country continue in force or are so applied, the same
taxes, licenses and other fees, in the aggregate, or fines,
penalties, deposit requirements or other material obligations,
prohibitions, or restrictions, of whatever kind, shall be imposed
upon the insurers, or upon the agents or representatives of those
insurers, of the other state or country doing business or seeking to
do business in California. Any tax, license or other fee or other
obligation imposed by any city, county, or other political
subdivision or agency of the other state or country on California
insurers or their agents or representatives shall be deemed to be
imposed by that state or country within the meaning of this article.
(b) On and after January 1, 1994, and before January 1, 1995,
every insurer whose annual taxes exceed fifty thousand dollars
($50,000) shall make payment by electronic funds transfer. On and
after January 1, 1995, every insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 for completing the electronic funds transfer.
(c) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated. If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.
(d) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
(2) If the department finds that an insurer's failure to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (b) is due to reasonable cause or circumstances
beyond the insurer's control, and occurred notwithstanding the
exercise of ordinary care and in the absence of willful neglect, that
insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in
paragraph (1) shall file with the department a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.
685.1. This article shall not apply as to personal income taxes,
nor as to ad valorem taxes on real or personal property nor as to
special purpose obligations or assessments heretofore imposed by
another state or foreign country in connection with particular kinds
of insurance, other than property insurance; except that deductions,
from premium taxes or other taxes otherwise payable, allowed on
account of real estate or personal property taxes paid shall be taken
into consideration in determining the propriety and extent of
retaliatory action under this article.
685.2. For the purposes of this article the domicile of an alien
insurer, other than insurers formed under the laws of Canada, shall
be that state in which is located its principal place of business in
the United States.
In the case of an insurer formed under the laws of Canada or a
province thereof, its domicile shall be deemed to be that province in
which its head office is situated.
685.3. To the extent permitted by the California Constitution there
is hereby imposed upon the commissioner the duty to enforce Section
685. It shall be the duty of the commissioner to initiate the
enforcement and execution of Section 685 in respect to all matters
which by the California Constitution or laws of this state require
further or final action by other officials of this state. In respect
to any matter initiated by the commissioner, it shall be the duty of
the Board of Equalization and the Controller to complete the
enforcement and execution of Section 685 in respect to that matter
within the scope of the duties and powers of each as set forth in the
California Constitution and laws of this state.
685.4. The provisions of this article shall also be applicable to
reciprocals or interinsurance exchanges and fraternal benefit
societies.
