Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2015
Tax on Insurers Law
Chapter 3. All Insurance Other Than Ocean Marine.
Article 2. Basis of Tax for Other Than Title Insurers
12222. Funds for annuity purchases. Funds accepted by a life insurer under an agreement which provides for an accumulation of funds to purchase annuities at future dates may be considered as "gross premiums received" either upon receipt or upon the actual application of such funds to the purchase of annuities. However, any interest credited to funds accumulated while under the latter alternative shall also be included in "gross premiums received," and any funds taxed upon receipt, including any interest later credited thereto, shall not be subject to taxation upon the purchase of annuities. Each life insurer shall signify on its premium tax return covering premiums for the calendar year 1957 its election between such two alternatives. Thereafter an insurer shall not change such election without the consent of the commissioner. Any such funds taxed as "gross premiums" shall, in the event of withdrawal of the funds before their actual application to the purchase of annuities, be eligible to be included as "return premiums" if eligible therefor under the provisions of Section 28 of Article XIII of the Constitution.
History.—Added by Stats. 1961, p. 1983, operative January 1, 1962. Derived from former Section 12252.5. Stats. 1974, p. 620, operative November 6, 1974, substituted "Section 28" for "Section 144/5".