Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011
 

Tax on Insurers Law

Chapter 1. General Provisions

Article 1. Definitions

Section 12003

12003. "Insurer." "Insurer" as used in this part includes each of the following:

(a) Insurance companies or associations.

(b) Reciprocal or interinsurance exchanges, together with their corporate or other attorneys in fact considered as a single unit.

(c) The State Compensation Insurance Fund.

As used in this section, "companies" includes persons, partnerships, joint stock associations, companies and corporations.

History.—Stats. 1943, p. 2832, in effect December 31, 1943, completely reworded the definition which formerly referred to business organizations organized to assume risks of loss. Stats. 1951, p. 2447, in effect September 22, 1951, added State Compensation Insurance Fund to the definition. Stats. 1963, p. 3904, operative January 1, 1964, divided the section into subdivisions (a), (b) and (c) and added "together with their corporate attorneys in fact considered as a single unit" to subdivision (b). Stats. 1967, p. 2599, in effect November 8, 1967, added "or other" to (b) and moved the language defining "companies" from (c) to the last sentence of the section.

Note.—Stats. 1951, p. 2447, amending Sections 202, 12003 and former Section 12264 of the Revenue and Taxation Code, provides that if any one of its provisions is held invalid the remainder of the act shall also be deemed invalid.

Construction.—The gross premiums tax applies to all insurance companies and associations, whether fire or life, and whether doing business as stock concerns or mutual concerns. Northwestern Mutual Life Insurance Co. v. Roberts (1918) 177 Cal. 540.

Operative date of 1963 amendments.—The 1963 amendment to this section and to Section 1530 of the Insurance Code, which added corporate attorneys in fact for reciprocal or interinsurance exchanges to the definition of "insurer," were effective as of the income year beginning January 1, 1964, and did not operate to relieve the taxpayer, a corporate attorney in fact for an interinsurance exchange, from franchise tax for the taxable year 1964, as measured by its net income in 1963. Farmers Underwriters Ass'n v. Franchise Tax Board (1966) 242 Cal.App.2d 589.