Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2011
Tax on Insurers Law
Chapter 2. Ocean Marine Insurance.
Article 1. Definitions
12073. "Underwriting profit." "Underwriting profit," as respects any one calendar year, means the amount arrived at by deducting from the net earned premiums of that calendar year on ocean marine insurance contracts written within the United States:
(a) Losses incurred.
(b) Expenses incurred.
In arriving at "underwriting profit" there shall not be deducted as expenses incurred an amount exceeding 40 percent of the gross premiums on ocean marine insurance contracts written during the current calendar year.