Section 1502-B. Computation of tax for captive insurance companies

(a) In
  lieu of the taxes and tax surcharge imposed by sections fifteen  hundred
  one,  fifteen hundred two-a, fifteen hundred five-a, and fifteen hundred
  ten of this article, every captive insurance  company  licensed  by  the
  superintendent  of  insurance  pursuant  to  the  provisions  of article
  seventy of the insurance law, other than the metropolitan transportation
  authority and a public benefit corporation or not-for-profit corporation
  formed by a city with a population of one million or  more  pursuant  to
  subsection (a) of section seven thousand five of the insurance law, each
  of  which  is  expressly  exempt  from  the  payment  of  fees, taxes or
  assessments whether state or local, and other  than  an  overcapitalized
  captive  insurance  company,  shall, for the privilege of exercising its
  corporate franchise, pay a tax on (1) all gross  direct  premiums,  less
  return  premiums  thereon,  written on risks located or resident in this
  state and (2) all assumed reinsurance  premiums,  less  return  premiums
  thereon, written on risks located or resident in this state. The rate of
  the  tax  imposed  on  gross direct premiums shall be four-tenths of one
  percent on all or any part  of  the  first  twenty  million  dollars  of
  premiums,  three-tenths  of one percent on all or any part of the second
  twenty million dollars of premiums, two-tenths of one percent on all  or
  any   part  of  the  third  twenty  million  dollars  of  premiums,  and
  seventy-five thousandths of one  percent  on  each  dollar  of  premiums
  thereafter. The rate of the tax on assumed reinsurance premiums shall be
  two hundred twenty-five thousandths of one percent on all or any part of
  the  first  twenty  million  dollars  of premiums, one hundred and fifty
  thousandths of one percent on all or  any  part  of  the  second  twenty
  million  dollars of premiums, fifty thousandths of one percent on all or
  any part of the third twenty million dollars of premiums and twenty-five
  thousandths of one percent on each dollar of  premiums  thereafter.  The
  tax imposed by this section shall be equal to the greater of (i) the sum
  of  the  tax  imposed  on  gross  direct premiums and the tax imposed on
  assumed reinsurance premiums or (ii) five thousand dollars.
    (b) In determining the amount of  gross  direct  premiums  or  assumed
  reinsurance  premiums  taxable  in  this  state,  all  premiums written,
  procured or received in this state shall be deemed written  on  property
  or  risks  located or resident in this state except such premiums as are
  properly allocated or apportioned and reported as  taxable  premiums  or
  which have been used as a measure of a tax of any other state or states.
    (c)  The definition of the term "premium" set forth in subdivision (c)
  of section fifteen hundred ten of  this  article  shall  apply  to  this
  section.    In  addition,  "gross direct premium" shall be determined as
  provided in such subdivision  (c).  Provided,  however,  that  the  term
  "premium"  shall also include any amount received by a captive insurance
  company as consideration for insurance provided, in the case of  a  pure
  captive insurance company, to its parents and affiliated companies, and,
  in  the  case  of  a  group captive insurance company, to the industrial
  insureds that comprise the industrial insured  group.  The  terms  "pure
  captive   insurance   company",   "group   captive  insurance  company",
  "industrial insureds" and "industrial insured group" shall have the same
  meanings as such terms  have  in  section  seven  thousand  two  of  the
  insurance  law.  The  reporting  of  premiums for the purpose of the tax
  imposed by this section shall be on a written basis  or  on  a  paid-for
  basis  consistent  with the basis required by the annual statement filed
  with the superintendent of insurance pursuant to section seven  thousand
  six of the insurance law.
    (d)  The  superintendent  of insurance shall have the same power, duty
  and responsibility to examine the returns of captive insurance companies

  as such superintendent has with respect to insurance corporations as set
  forth in subdivision (e) of section fifteen hundred ten of this article.
    (e)  The  credits  set forth in section fifteen hundred eleven of this
  article shall not be allowed against the tax imposed by this section.