Section 1510. Additional franchise tax on insurance corporations

(a)
  Domestic, foreign and alien insurance corporations except life insurance
  corporations.  Except  as  hereinafter  provided,  for   taxable   years
  beginning  before  January  first,  two  thousand  three  every domestic
  insurance corporation, every foreign  insurance  corporation  and  every
  alien  insurance  corporation,  other than such corporations transacting
  the business of life insurance, (1) authorized to transact  business  in
  this  state  under a certificate of authority from the superintendent of
  insurance or  (2)  which  is  a  risk  retention  group  as  defined  in
  subsection  (n)  of  section  five  thousand  nine  hundred  two  of the
  insurance  law,  shall,  for  the  privilege  of  exercising   corporate
  franchises  or  for  carrying  on  business  in a corporate or organized
  capacity within this state, and in addition to any other  taxes  imposed
  for  such privilege, pay a tax on all gross direct premiums, less return
  premiums thereon, written on risks located or resident  in  this  state.
  The  rate  of  tax  imposed  by this subdivision shall be two percent on
  premiums  written  on  or  after   January   first,   nineteen   hundred
  seventy-four  and  before  January first, nineteen hundred seventy-five,
  one and nine-tenths percent on premiums  written  on  or  after  January
  first,  nineteen hundred seventy-five and before January first, nineteen
  hundred seventy-six, one and eight-tenths percent on premiums written on
  or after January first, nineteen hundred seventy-six and before  January
  first,  nineteen  hundred  seventy-eight,  one and two-tenths percent on
  premiums  written  on  or  after   January   first,   nineteen   hundred
  seventy-eight  and before January first, nineteen hundred ninety-two and
  one and three-tenths percent on premiums written on and after such date.
  Provided, however, that the rate of tax imposed by this  subdivision  on
  all  gross  direct  premiums, less return premiums thereon, for accident
  and health insurance contracts shall be one and six-tenths  percent  for
  such  premiums  written  on  or  after  January  first, nineteen hundred
  seventy-four and before January first, nineteen  hundred  seventy-eight,
  and  one  percent  for  such premiums written on or after January first,
  nineteen hundred seventy-eight.
    (b) Domestic, foreign  and  alien  life  insurance  corporations.  (1)
  Except   as   hereinafter   provided,   every  domestic  life  insurance
  corporation, and every foreign  and  alien  life  insurance  corporation
  authorized  to  transact  business  in this state under a certificate of
  authority from the superintendent of insurance, shall, for the privilege
  of exercising corporate franchises or for  carrying  on  business  in  a
  corporate  or  organized  capacity within this state, and in addition to
  any other taxes imposed for such privilege,  pay  a  tax  on  all  gross
  direct  premiums,  less  return  premiums  thereon,  received in cash or
  otherwise on  risks  resident  in  this  state,  including  supplemental
  contracts  for  total  and  permanent disability benefits and accidental
  death benefits. The rate of such tax shall be  (i)  one  and  six-tenths
  percent  on  such  premiums received on or after January first, nineteen
  hundred  seventy-four  and  before  January  first,   nineteen   hundred
  seventy-eight,  (ii)  one  percent on such premiums received on or after
  January first, nineteen hundred seventy-eight and before January  first,
  nineteen  hundred  eighty-seven,  (iii)  eight-tenths  percent  on  such
  premiums  received  on  or  after  January   first,   nineteen   hundred
  eighty-seven  and  before  January first, nineteen hundred ninety-eight,
  and (iv) seven-tenths percent on such  premiums  received  on  or  after
  January first, nineteen hundred ninety-eight.
    (2)  Every  such  life  insurance  corporation  which  shall  obtain a
  certificate of authority to transact business in this state or a renewal
  of such certificate from the superintendent of insurance shall, upon the
  expiration of such certificate for any cause  or  upon  its  ceasing  to

  transact  new  business  in  this  state, continue to pay a tax upon its
  business remaining in force in this state at the rate and as computed in
  this subdivision.
    (c) Determination of direct premiums--general provisions. (1) The term
  "premium"  includes  all amounts received as consideration for insurance
  contracts, reinsurance contracts or contracts  with  health  maintenance
  organizations for health services, other than for annuity contracts, and
  shall  include  premium  deposits,  assessments, policy fees, membership
  fees, any separate costs by carriers assessed upon  their  policyholders
  and  every  other  compensation  for  such contract. In ascertaining the
  amount of direct premiums upon which a tax is payable under this section
  there shall be first determined the amount of total  gross  premiums  or
  deposit  premiums or assessments, less returns thereon, on all policies,
  certificates, renewals, policies subsequently cancelled,  insurance  and
  reinsurance  executed,  issued or delivered on property or risks located
  or resident in this state, including premiums for  reinsurance  assumed,
  and  also including premiums written, procured or received in this state
  on business which cannot specifically be allocated  or  apportioned  and
  reported  as  taxable premiums or which have been used as a measure of a
  tax on business of any other state or states. Provided however,  in  the
  case  of special risk premiums, direct premiums shall include only those
  premiums written, procured or received in  this  state  on  property  or
  risks  located  or resident in this state. 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 three hundred seven of the insurance law.
    (2)  The  term "gross direct premiums," as used in this section, shall
  not include premiums  for  policies  issued  pursuant  to  section  four
  thousand  two  hundred  thirty-six of the insurance law and premiums for
  insurance upon hulls, freights, or disbursements, or upon goods,  wares,
  merchandise  and  all  other personal property and interests therein, in
  the course  of  exportation  from,  importation  into  any  country,  or
  transportation coastwise, including transportation by land or water from
  point  of origin to final destination in respect to, appertaining to, or
  in connection with, any and all risks or perils of  navigation,  transit
  or  transportation,  and  while  being  prepared for, and while awaiting
  shipment, and during any delays, storage,  transshipment  or  reshipment
  incident  thereto,  including  war risks and marine builder's risks. The
  term "gross direct premiums," as used in this section,  also  shall  not
  include  any premiums that this state is prohibited from taxing pursuant
  to federal law, including (i) subsection (f) of section 8909 of title  5
  of  the  united  states code, (ii) subsection (g) of section 1395w-24 of
  title 42 of the united states code,  (iii)  subsection  (g)  of  section
  1395w-112  of  title 42 of the United States code, and (iv) subparagraph
  (B) of paragraph (4) of subsection (k) of section 1395mm of title 42  of
  the United States code.
    (3) After determining the amount of total gross premiums, less returns
  thereon, as hereinbefore provided, there shall be deducted the following
  items:
    (A)  Such  premiums,  less  return  premiums  thereon, which have been
  received by way of  reinsurance  from  corporations  or  other  insurers
  authorized to transact business in this state;
    (B)  Such  premiums,  less  return  premiums  thereon, which have been
  received by way of reinsurance from corporations or other  insurers  not
  authorized  to  transact  business in this state to the extent that such
  premiums relate to transactions (i) that are authorized by  section  two
  thousand  one  hundred  five of the insurance law with respect to excess

  line insurance, and (ii) with respect  to  which  sums  are  payable  by
  licensed excess line brokers to the superintendent of insurance pursuant
  to section two thousand one hundred eighteen of the insurance law; and
    (C)  Dividends on such direct business, including unused or unabsorbed
  portions of premium deposits paid or credited to policyholders, but  not
  including  deferred  dividends paid in cash to policyholders on maturing
  policies, nor cash surrender values.
    (4) In determining the amount  of  direct  premiums  taxable  in  this
  state,  all  such  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,  provided  however,  in  the  case  of
  special risk premiums, direct premiums shall include only those premiums
  written, procured or received in this state on property or risks located
  or resident in this state.
    (e) Powers and duties of the superintendent of insurance.
    (1)   The   superintendent  of  insurance  shall,  on  behalf  of  the
  commissioner, have the power, duty and responsibility to examine returns
  of an insurance corporation filed with him pursuant to  section  fifteen
  hundred  fifteen  and,  together  with  any other information within his
  possession or that may  come  into  his  possession,  to  ascertain  the
  correct  amount  of  tax  imposed  under  this  section of any insurance
  corporation. For the purpose of ascertaining the correctness of any such
  tax imposed under this section or for the purpose of making an  estimate
  of  the  tax  liability under this section of any insurance corporation,
  the superintendent shall have the power to  examine  or  cause  to  have
  examined  by  any  agent  or  representative  designated by him for that
  purpose, any books,  papers,  records  or  memoranda  bearing  upon  the
  matters required to be included in the return.
    (2)  If  the superintendent of insurance ascertains that the amount of
  tax imposed under this section as shown on the return of  any  insurance
  corporation  is  less  than  the  amount  of tax disclosed by his or her
  examination, he or she shall propose, in writing,  to  the  commissioner
  the  issuance  of  a  notice  of  deficiency  for  the amount due. If an
  insurance corporation fails to file a return with the superintendent  of
  insurance  within  the time required for the filing of such return (with
  regard  to  any  extension  of  time  for  the  filing   thereof),   the
  superintendent  of insurance shall make an estimate of the amount of tax
  due for the period in respect to which such insurance corporation failed
  to file the return. The  estimate  shall  be  made  from  any  available
  information  which  is in the possession or may come into the possession
  of the superintendent of insurance and he shall propose, in writing,  to
  the  commissioner  the issuance of a notice of deficiency for the amount
  of such estimated tax. Any proposal pursuant to this paragraph shall set
  forth the basis thereof and the details of its computation.
    (3) The  commissioner  shall,  on  receipt  of  a  proposal  from  the
  superintendent   of   insurance   pursuant  to  paragraph  two  of  this
  subdivision, review such proposal and if satisfied as to the correctness
  thereof shall  take  appropriate  action  under  this  chapter  for  the
  assessment  and  collection of the amount of tax, together with interest
  and penalties, either shown by such proposal to  be  due  or  which  the
  commissioner  ascertains  to  be due. The provisions of this subdivision
  shall not in any way be deemed to limit the power of the commissioner to
  conduct such examination, or investigation  as  it  deems  necessary  in
  order  to  carry  out its duties with respect to the taxes imposed under
  this section.

    (4) Subject to the consent of  the  superintendent  of  insurance  and
  notwithstanding  any  other  provisions  of  law  to  the  contrary, the
  commissioner may delegate such other of his or  her  powers  and  duties
  with  respect  to the administration and collection of the taxes imposed
  under   this   section  to  the  superintendent  of  insurance,  as  the
  commissioner finds necessary in order to facilitate such  administration
  and collection.