§431:7-202  Taxation.  (a)  Each
authorized insurer, except with respect to all life insurance contracts, ocean
marine insurance contracts, and real property title insurance contracts, shall
pay to the director of finance through the commissioner a tax of 4.265 per cent
on the gross premiums written from all risks or property resident, situated, or
located within this State, during the year ending on the preceding December 31,
less return premiums (but not including dividends paid or credited to policyholders),
and less any reinsurance accepted (the tax upon such business being payable by
the direct writing insurer).



All premiums written, procured, or received in
the State shall be presumed to have been from risks or property resident,
situated, or located within the State.  This presumption may be rebutted as to
any premium:



(1)  By showing that it has been properly allocated or
apportioned and reported as a taxable premium of another state or other
appropriate taxing authority; or



(2)  By facts as to the residence, situation, or
location of the risks or property, conclusively showing the nontaxability of
the premium.



(b)  Each authorized insurer, with respect to
life insurance contracts, shall pay to the director of finance through the
commissioner a tax of 2.75 per cent on the gross premiums received from all
risks resident within this State, during the year ending on the preceding
December 31, less return premiums, dividends paid or credited to policyholders,
and reinsurance accepted (the tax upon such business being payable by the
direct writing insurer).



The tax also shall apply to premiums for
insurance written on individuals residing outside the State unless the direct
writing insurer shall show the payment of a comparable tax to another
appropriate taxing authority.  Such showing may be required as to any premium
written, procured, or received in the State.



(c)  Each authorized insurer shall, with
respect to all ocean marine insurance contracts written within the State,
during the year ending on the preceding December 31, pay to the director of
finance through the commissioner a tax of .8775 per cent on its gross
underwriting profit.  The gross underwriting profit shall be ascertained by
deducting from the net premiums (i.e., gross premiums less all return premiums
and premiums for reinsurance ceded) on such ocean marine insurance contracts,
the net losses paid (i.e., gross losses paid less salvage and recoveries on
reinsurance ceded) during such year under such contracts.  In the case of an
insurer issuing participating contracts, the gross underwriting profit shall
not include, for computation of the tax prescribed by this subsection, the
amount refunded, or paid as participation dividends, by such insurer to the
holders of such contracts.



(d)  Each authorized insurer, with respect to
real property title insurance contracts written on real property situated
within this State during the year ending on the preceding December 31, shall
pay to the director of finance through the commissioner a tax of 4.265 per cent
of the amount of the risk premium actually received by the authorized insurer
for the provision of such insurance.  The amount of the risk premium received
by the authorized insurer for the provision of real property title insurance
shall be an amount equal to the amount actually received by the authorized
insurer solely for the provision of real property title insurance coverage in
accordance with the underwriting agreement or contract between the authorized
insurer and the underwritten title company.



(e)  No return premium shall be deductible
unless the original gross premium, or an adjustment thereof, in an amount equal
to or in excess of the return premium, has been concurrently or previously
reported as taxable under this section or a prior similar law of the State.



(f)  The taxes imposed by subsections (a), (b),
(c), and (d) shall be paid quarterly.  The quarterly tax shall be due and
payable on or before the last day of the calendar month following the quarter
in which it accrues, coinciding with the filing of the statement provided for
in section 431:7-201.



In addition to the quarterly tax and quarterly
tax statement, the annual tax shall be due and payable on or before March 1
coinciding with the filing of the statement provided for in section 431:7-201.



All amounts paid under this subsection, other
than fines, shall be allowed as a credit on the annual tax imposed by
subsections (a), (b), (c), and (d).



If the total amount of installment payments for
any calendar year exceeds the amount of annual tax for that year, the excess
shall be treated as an overpayment of the annual tax and be allowed as a refund
under section 431:7-203.



Any insurer failing or refusing to pay the
required taxes above stated when due and payable shall be liable for a fine of
$500 or ten per cent of the tax due, whichever is greater; plus interest at a
rate of twelve per cent per annum on the delinquent taxes.  The taxes may be
collected by distraint, or the taxes, fine, and interest may be recovered by an
action to be instituted by the commissioner in the name of this State, in any
court of competent jurisdiction.  The commissioner may suspend the certificate
of authority of the delinquent insurer until the taxes, fine, and interest,
should any be imposed, are fully paid.



(g)  In establishing the prepayment amount of
an insurer who has acquired the business of another insurer, the amount of tax
liability of the acquiring insurer for the preceding calendar year shall be
deemed to include the amount of tax liability of the acquired insurer for that
year. [L 1987, c 347, pt of §2; am L 1992, c 236, §6; am L 1994, c 160, §1; am
L 1995, c 232, §14; am L 1998, c 202, §2; am L 2003, c 212, §42]