§431:7-202  Taxation.  (a)  Eachauthorized insurer, except with respect to all life insurance contracts, oceanmarine insurance contracts, and real property title insurance contracts, shallpay to the director of finance through the commissioner a tax of 4.265 per centon the gross premiums written from all risks or property resident, situated, orlocated 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 bythe direct writing insurer).

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

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

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

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

The tax also shall apply to premiums forinsurance written on individuals residing outside the State unless the directwriting insurer shall show the payment of a comparable tax to anotherappropriate taxing authority.  Such showing may be required as to any premiumwritten, procured, or received in the State.

(c)  Each authorized insurer shall, withrespect to all ocean marine insurance contracts written within the State,during the year ending on the preceding December 31, pay to the director offinance through the commissioner a tax of .8775 per cent on its grossunderwriting profit.  The gross underwriting profit shall be ascertained bydeducting from the net premiums (i.e., gross premiums less all return premiumsand premiums for reinsurance ceded) on such ocean marine insurance contracts,the net losses paid (i.e., gross losses paid less salvage and recoveries onreinsurance ceded) during such year under such contracts.  In the case of aninsurer issuing participating contracts, the gross underwriting profit shallnot include, for computation of the tax prescribed by this subsection, theamount refunded, or paid as participation dividends, by such insurer to theholders of such contracts.

(d)  Each authorized insurer, with respect toreal property title insurance contracts written on real property situatedwithin this State during the year ending on the preceding December 31, shallpay to the director of finance through the commissioner a tax of 4.265 per centof the amount of the risk premium actually received by the authorized insurerfor the provision of such insurance.  The amount of the risk premium receivedby the authorized insurer for the provision of real property title insuranceshall be an amount equal to the amount actually received by the authorizedinsurer solely for the provision of real property title insurance coverage inaccordance with the underwriting agreement or contract between the authorizedinsurer and the underwritten title company.

(e)  No return premium shall be deductibleunless the original gross premium, or an adjustment thereof, in an amount equalto or in excess of the return premium, has been concurrently or previouslyreported 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 andpayable on or before the last day of the calendar month following the quarterin which it accrues, coinciding with the filing of the statement provided forin section 431:7-201.

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

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

If the total amount of installment payments forany calendar year exceeds the amount of annual tax for that year, the excessshall be treated as an overpayment of the annual tax and be allowed as a refundunder section 431:7-203.

Any insurer failing or refusing to pay therequired 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 arate of twelve per cent per annum on the delinquent taxes.  The taxes may becollected by distraint, or the taxes, fine, and interest may be recovered by anaction to be instituted by the commissioner in the name of this State, in anycourt of competent jurisdiction.  The commissioner may suspend the certificateof authority of the delinquent insurer until the taxes, fine, and interest,should any be imposed, are fully paid.

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