§ 1500 — General definitions

New York § 1500

• Jurisdiction: New York
• Law TAX: Tax
• Art. 33: Franchise Taxes On Insurance Corporations

Text

Section 1500. General definitions. The following words, as used in\nthis article, shall have the meanings hereinafter set forth.\n (a) The term "insurance corporation" includes a corporation,\nassociation, joint stock company or association, person, society,\naggregation or partnership, by whatever name known, doing an insurance\nbusiness, and, notwithstanding the provisions of section fifteen hundred\ntwelve of this article, shall include (1) a risk retention group as\ndefined in subsection (n) of section five thousand nine hundred two of\nthe insurance law, (2) the state insurance fund and (3) a corporation,\nassociation, joint stock company or association, person, society,\naggregation or partnership doing an insurance business as a member of\nthe New York insurance exchange described in section six thousand two\nhundred one of the insurance law. The definition of the "state insurance\nfund" contained in this subdivision shall be limited in its effect to\nthe provisions of this article and the related provisions of this\nchapter and shall have no force and effect other than with respect to\nsuch provisions. The term "insurance corporation" shall also include a\ncaptive insurance company doing a captive insurance business, as defined\nin subsections (c) and (b), respectively, of section seven thousand two\nof the insurance law; provided, however, "insurance corporation" shall\nnot include the metropolitan transportation authority, the power\nauthority of New York or any statutory subsidiary thereof, the New York\nconvention center operating corporation or any statutory subsidiary\nthereof, or a public benefit corporation or not-for-profit corporation\nformed by a city with a population of one million or more pursuant to\nsubsection (a) of section seven thousand five of the insurance law, each\nof which is expressly exempt from the payment of fees, taxes or\nassessments, whether state or local; and provided further "insurance\ncorporation" does not include any combinable captive insurance company.\nThe term "insurance corporation" shall also include an unauthorized\ninsurer operating from an office within the state, pursuant to paragraph\nfive of subsection (b) of section one thousand one hundred one and\nsubsection (i) of section two thousand one hundred seventeen of the\ninsurance law. The term "insurance corporation" also includes a health\nmaintenance organization required to obtain a certificate of authority\nunder article forty-four of the public health law.\n (b) The term "domestic insurance corporation" means an insurance\ncorporation incorporated or organized under the laws of this state.\nProvided, however, the savings banks life insurance fund and savings and\ninsurance banks which are authorized to transact the business authorized\nby the provisions of article six-a of the banking law shall be subject\nto taxation as domestic insurance corporations on such insurance\nbusiness under this article.\n (c) The term "foreign insurance corporation" means an insurance\ncorporation incorporated or organized under the laws of any other state\nof the United States, the District of Columbia or the Commonwealth of\nPuerto Rico.\n (d) The term "alien insurance corporation" means an insurance\ncorporation incorporated or organized under the laws of any other\nforeign nation, or of any province or territory not included under the\ndefinition of "foreign insurance corporation."\n (e) The term "taxpayer" means any insurance corporation subject to the\ntax imposed under section fifteen hundred one, fifteen hundred two-a, or\nfifteen hundred ten or any captive insurance company subject to the tax\nimposed under section fifteen hundred two-b of this article.\n (f) The term "taxable year" means the taxpayer's taxable year for\nfederal income tax purposes, or the part thereof during which the\ntaxpayer is subject to the tax under this article.\n (g) The term "subsidiary" means a corporation of which over fifty\npercent of the number of shares of stock entitling the holders thereof\nto vote for the election of directors or trustees is owned by the\ntaxpayer.\n (h) The term "subsidiary capital" means investments in the stock of\nsubsidiaries and any indebtedness from subsidiaries, exclusive of\naccounts receivable acquired in the ordinary course of trade or business\nfor services rendered or for sales of property held primarily for sale\nto customers, whether or not evidenced by a written instrument, on which\ninterest is not claimed and deducted by the subsidiary for purposes of\ntaxation under any article of this chapter, provided, however, that in\nthe discretion of the tax commission, there shall be deducted from\nsubsidiary capital any liabilities payable by their terms on demand\nwithin one year from the date incurred, other than loans or advances\noutstanding for more than one year as of any date during the taxable\nyear covered by the return, which are attributable to subsidiary\ncapital.\n (i) The term "investment capital" means investments in stocks, bonds\nand other securities, corporate and governmental, not held for sale to\ncustomers in the regular course of business, exclusive of subsidiary\ncapital and stock issued by the taxpayer, provided, however, that in the\ndiscretion of the tax commission, there shall be deducted from\ninvestment capital any liabilities payable by their terms on demand or\nwithin one year from the date incurred, other than loans or advances\noutstanding for more than a year as of any date during the year covered\nby the return, which are attributable to investment capital, provided,\nalso, there shall be excluded from investment capital, such investments\nwhich are held to maintain reserves of the taxpayer required under\nsections one thousand three hundred three, one thousand three hundred\nfour and one thousand three hundred five of the insurance law.\n (j) The term "business capital" means all assets, other than\nsubsidiary capital, investment capital and stock issued by the taxpayer,\nless liabilities not deducted from subsidiary or investment capital\nwhich are payable by their terms on demand or within one year from the\ndate incurred, other than loans or advances outstanding for more than a\nyear as of any date during the year covered by the return, except that\ncash on hand and on deposit shall be treated as investment or as\nbusiness capital as the taxpayer may elect, provided, however, that\nthere shall be excluded from business capital such assets which are held\nto maintain reserves of the taxpayer required under sections one\nthousand three hundred three, one thousand three hundred four and one\nthousand three hundred five of the insurance law.\n (k) The term "special risk premium" means any premium received on\ninsurance provided the insurance is exempt from the filing requirements\nwith respect to rates and policy forms pursuant to article sixty-three\nof the insurance law.\n