Section 1505. Limitation on tax

(a)  (1)  Domestic,  foreign and alien
  insurance   corporations    except    life    insurance    corporations.
  Notwithstanding  the  provisions  of  sections  fifteen  hundred one and
  fifteen hundred ten of this article, and except as otherwise provided in
  paragraph two of this subdivision, the amount  of  taxes  imposed  under
  such  sections  for  taxable  years beginning on or after January first,
  nineteen hundred seventy-seven and before January  first,  two  thousand
  three, computed without regard to any credits allowable against such tax
  other  than  those  credits  provided  under subdivisions (g) and (h) of
  section fifteen hundred eleven of this  article,  shall  not  exceed  an
  amount  computed  as  if such taxes were determined solely under section
  fifteen hundred ten, except that for purposes of the limitation provided
  herein, the rate of tax under such section shall be deemed to be (i) two
  and six-tenths percent for taxable years beginning on or  after  January
  first,  nineteen  hundred  seventy-seven  and  before  July  first,  two
  thousand, (ii) two and four tenths percent for taxable  years  beginning
  after  June  thirtieth, two thousand and before July first, two thousand
  one, (iii) two and two tenths percent for taxable years beginning  after
  June  thirtieth,  two  thousand  one and before July first, two thousand
  two, and (iv)  two  percent  for  taxable  years  beginning  after  June
  thirtieth, two thousand two.
    (2)  Domestic,  foreign  and  alien  life  insurance corporations. The
  provisions of this paragraph shall apply to  taxpayers  subject  to  tax
  under paragraph one of subdivision (b) of section fifteen hundred ten of
  this article. Notwithstanding the provisions of sections fifteen hundred
  one and fifteen hundred ten of this article, the amount of taxes imposed
  under  such  sections  for  taxable  years beginning on or after January
  first, nineteen hundred seventy-seven, computed without  regard  to  any
  credits  allowable  against  such  tax other than those credits provided
  under subdivisions (g) and (h) of section fifteen hundred eleven of this
  article, shall not exceed an amount  computed  as  if  such  taxes  were
  determined  solely  under  section  fifteen hundred ten, except that for
  purposes of the limitation provided herein, the rate of tax  under  such
  section shall be deemed to be (i) two and six-tenths percent for taxable
  years   beginning   on   or   after   January  first,  nineteen  hundred
  seventy-seven and before January first, nineteen  hundred  ninety-eight,
  and  (ii)  two  percent  for taxable years beginning on or after January
  first, nineteen hundred ninety-eight.
    (b) Notwithstanding the provisions of sections fifteen hundred one and
  fifteen hundred ten of this article, in the case of taxpayers subject to
  tax under subdivision (b) of section  fifteen  hundred  ten,  the  total
  amount   of   tax  imposed  under  this  article,  computed  before  the
  application of any credits allowable against such tax, shall in no event
  be less than the amount computed as if such tax  was  determined  solely
  under  section  fifteen  hundred  ten, except that the rate of tax under
  section fifteen hundred ten shall be deemed to be  one  and  five-tenths
  percent.
    (c)  For  purposes  of  the limitation set forth in subdivision (a) of
  this section,  in  the  case  of  an  insurance  corporation  more  than
  ninety-five  percent of whose premiums are received as consideration for
  annuity contracts  or  are  for  policies  and  insurance  described  in
  paragraph  two of subdivision (c) of section fifteen hundred ten of this
  article, in determining the amount of tax computed solely under  section
  fifteen  hundred  ten  of this article, gross direct premiums subject to
  tax  under  such  section  shall  include  such  amounts   received   as
  consideration  for  annuity  contracts  and  premiums  for  policies and
  insurance, including any  separate  costs  assessed  by  such  insurance
  corporation  upon  its  policyholders,  described  in  paragraph  two of

  subdivision (c) of such section that exceed ninety-five percent  of  all
  premiums  received,  including  consideration  for annuity contracts and
  premiums for policies and insurance (and any separate costs assessed  by
  such   insurance  corporations  upon  its  policyholders)  described  in
  paragraph two of subdivision (c) of such section.