Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Tax on Insurers Law

Chapter 6. Suspension of Rights of Delinquent Insurers.


Article 1 Revocation of Certificate of Authority

Article 2 Suspended Corporate Insurers


Chapter 6. Suspension of Rights of Delinquent Insurers.

Article 1. Revocation of Certificate of Authority

Text of section operative through June 30, 2012

12801. Controller's annual report of delinquent insurers. (a) Annually, between December 10th and 15th, the Controller shall transmit to the commissioner a statement showing the names of all insurers and Medi-Cal managed care plans that failed to pay on or before December 10th the whole or any portion of the tax that became delinquent in the preceding June or which has been unpaid for more than 30 days from the date it became due and payable as a deficiency assessment under this part or the whole or any part of the interest or penalties due with respect to the tax. The statement shall show the amount of the tax, interest, and penalties due from each insurer or Medi-Cal managed care plan.

(b) This section shall become inoperative on July 1, 2012, and, as of January 1, 2013, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.

History.—Stats. 1943, p. 2837, in effect December 31, 1943, substituted "December" in place of "November" and changed the month when the tax became delinquent from October to November. Stats. 1959, p. 1893, in effect April 1, 1959, substituted "June" for "November" and inserted "interest or" before "penalties due," and "interest" in last sentence. Stats. 1961, p. 1989, operative January 1, 1962, deleted "Insurance" before "commissioner" and added the language beginning after "June" and ending with "this part" in the first sentence. Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, designated the first paragraph as subdivision (a) and added "and Medi-Cal managed care plans" and "or Medi-Cal managed care plan" after "of all insurers" in the first sentence and "from each insurer" in the second sentence in subdivision (a); and added subdivision (b). Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, deleted former subdivision (b) which provided that "This section shall remain in effect only until January 1, 2011, and as of that date is repealed." and added the new subdivision (b). Stats. 2011, Ch. 11x1 (ABx1 21), in effect September 16, 2011, substituted "2012" for "2011" after "inoperative on July 1,", substituted "2013" for "2012" after "as of January 1,", substituted "July" for "January" after "operative on or before" in subdivision (b).

Text of section operative July 1, 2012

12801. Controller's annual report of delinquent insurers. (a) Annually, between December 10th and 15th, the Controller shall transmit to the commissioner a statement showing the names of all insurers that failed to pay on or before December 10th the whole or any portion of the tax that became delinquent in the preceding June or which has been unpaid for more than 30 days from the date it became due and payable as a deficiency assessment under this part or the whole or any part of the interest or penalties due with respect to the tax. The statement shall show the amount of the tax, interest, and penalties due from each insurer.

(b) This section shall become operative on July 1, 2012.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011. Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, substituted "July 1, 2011" for "January 1, 2011" after "operative on" in subdivision (b). Stats. 2011, Ch. 11x1 (ABx1 21), in effect September 16, 2011, substituted "2012" for "2011" after "operative on July 1," in subdivision (b).

12802. Revocation of certificate of authority; hearing. The commissioner shall give at least 10 days' notice in writing to each insurer of the time and place of a hearing to show cause why its certificate of authority shall not be revoked. Upon hearing, the commissioner shall revoke the certificate of authority of each insurer which does not establish to his satisfaction at or before the hearing that the tax, interest, and penalties due from it have been paid.

History.—Stats. 1959, p. 1893, in effect April 1, 1959, inserted "interest," before "and penalties due." Stats. 1961, p. 1989, operative January 1, 1962, deleted "Insurance" before "commissioner" in the first sentence.

12803. Restoration of certificate. An insurer whose certificate of authority has been revoked pursuant to this article may have the certificate restored by the commissioner during the period for which it was issued upon the payment by the insurer of all taxes, interest, and penalties due from it and the payment to the commissioner of a fee of five hundred dollars ($500).

History.—Stats. 1959, p. 1893, in effect April 1, 1959, inserted "interest," before "and penalties due." Stats. 1961, p. 1990, operative January 1, 1962, deleted "Insurance" before "commissioner." Stats. 1965, p. 1831, in effect September 17, 1965, substituted "five hundred dollars ($500)" for "ten dollars ($10)".

Note.—For provisions relating to revivor of corporate powers suspended or forfeited prior to June 12, 1939, see Corporations Code Sections 5702–5705.

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Article 2. Suspended Corporate Insurers

12832. Exercise of rights after suspension unlawful. Every person who attempts or purports to exercise any of the rights, privileges or powers of a suspended domestic insurer or attempts to transact any intrastate business in this state in behalf of a forfeited foreign insurer is guilty of a misdemeanor. Upon conviction he shall be punished by a fine not exceeding two thousand dollars ($2,000), or by imprisonment in a county jail not exceeding one year, or by both such fine and imprisonment.

History.—Stats. 1957, p. 746, in effect September 11, 1957, eliminated provision for minimum fine and period of confinement, and decreased maximum confinement in county jail to a period not exceeding one year. Stats. 1983, Ch. 1092, in effect September 27, 1983, operative January 1, 1984, substituted "two thousand dollars ($2,000)" for "one thousand dollars" after "exceeding" in the second sentence.

12833. Jurisdiction of offense. The county in which occurs any part of the attempted exercise of the powers or any part of the transaction of business has jurisdiction of the offense.

12834. Evidence; certified copies of lists of delinquent corporations. The certified copies of lists of corporations which have failed to pay the taxes, interest, and penalties imposed upon insurers transmitted by the Controller to county clerks and county recorders for filing or recording in their respective offices, or a copy of these lists certified by the Controller, are receivable in evidence in any court in lieu of the original record of suspension or forfeiture on file with the Controller, and are prima facie evidence of the truth of all statements contained.

History.—Stats. 1959, p. 1893, in effect April 1, 1959, inserted "interest, and penalties" after "taxes." Stats. 1973, Ch. 665, effective January 1, 1974, added "or recording".

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