CO Code § 10-3-209 (2021)
2021 Colorado Code|Title 10 - Insurance|Article 3 - Regulation of Insurance Companies|Part 2 - Financial Affairs|§ 10-3-209. Tax on Premiums Collected - Exemptions - Penalties

     All insurance companies writing business in this state, including, without limitation, those defined in section 10-1-102 (6), except a disqualified insurance company, shall pay to the division of insurance a tax on the gross amount of all premiums collected or contracted for on policies or contracts of insurance covering property or risks in this state during the previous calendar year, after deducting from such gross amount the amount received as reinsurance premiums on business in this state, and the amount refunded under credit life and credit accident and health insurance policies on account of termination of insurance prior to the maturity date of the indebtedness, and, in the case of companies other than life, the amounts paid to policyholders as return premiums, which shall include dividends or unabsorbed premiums or premium deposits returned or credited to policyholders.      The rate of tax shall be as follows: (b) (I) The rate of tax shall be as follows:   For companies not exempted or charged a different rate of tax by another provision of this section, the rate of tax on the gross amount shall be:    For companies maintaining a home office or a regional home office in this state, the rate of tax on the gross amount shall be one percent.       For purposes of this subsection (1)(b), except as otherwise provided in subsection (1)(b)(II.5), any company is deemed to maintain a home office or regional home office in this state if such company either:   Substantially performs in this state the following functions, or substantially equivalent functions, for the company for each state in which the company is licensed, or for three or more of such states: Actuarial, medical, legal, approval or rejection of applications, issuance of policies, information and service, advertising and publications, public relations, hiring, testing, and training of sales and service forces; or    Maintains significant direct insurance operations in this state that are supported by functional operations which are both necessary for and pertinent to a line or lines of business written by the company in this state. (II.5) To be deemed to maintain a home office or regional home office in this state, a company must meet one of the criteria set forth in subsection (1)(b)(II) of this section and also have a workforce in the state that is greater than or equal to:    Two and one-half percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2024 and each calendar year thereafter.  (II.7) For purposes of the calculation required in subsection (1)(b)(II.5) of this section, a workforce includes all employees of the company; the company's ultimate parent entity; subsidiaries; and affiliates, as defined in section 10-3-801 (1) , but excludes agents, brokers, and their staff.        Any company desiring to qualify an office in this state as a home or regional home office shall make application for qualification to the commissioner on forms prescribed by the commissioner and shall submit proof that it is operating a home or a regional home office in this state. Applications for companies that were not approved in the immediate preceding year shall be received by the commissioner by December 31 of the year immediately preceding the year for which the application for qualification is being made. Applications for companies that were approved in the immediate preceding year shall be received by the commissioner by March 1 of the year for which qualification is being made. Applications for companies that were approved in the immediate preceding year received through March 31 shall pay a late charge of one hundred dollars per day for each day after March 1 that any such application is received by the commissioner. Applications received after March 31 shall be denied. The provisions of subsection (2) of this section shall not apply to companies maintaining a home office or regional home office in this state.       The taxes prescribed in paragraph (b) of this subsection (1) shall constitute all taxes collectible under the laws of this state against any such insurance companies, and no other occupation tax or other taxes shall be levied or collected from any insurance company by any county, city, or town within this state; but this title (except article 15) and article 14 of title 24, C.R.S., shall not be construed to prohibit the levy and collection of state, county, school, and municipal taxes upon the real and personal property of such companies, nor shall it include or prohibit the levy and collection of a tax to be paid on net workers' compensation premiums, as provided under the “Colorado Medical Disaster Insurance Fund Act”, part 3 of article 46 of title 8, C.R.S.      All fraternal and benevolent associations organized under the laws of this state and doing business in this state shall be exempt from the provisions of this section. (d) (I) All fraternal and benevolent associations organized under the laws of this state and doing business in this state shall be exempt from the provisions of this section.    Mutual protective associations writing crop hail insurance only and operating on an advance premium basis shall be exempt from the taxes provided by this section on that portion of the premium designated to the loss fund.    There shall be no tax under this section in the case of any policy issued prior to 1959 by a domestic insurance company organized under the laws of this state, maintaining its principal place of business in this state, and having thirty percent or more of its assets invested in bonds or warrants of this state or of any county, city, town, or district of this state, and other property within this state in which such company is permitted by law to invest its funds, and the premium of which policy was fixed and is contractually binding upon the company.    Except to the extent provided in subsection (2) of this section, the tax imposed by this section shall not apply to premiums collected or contracted for after December 31, 1968, on policies or contracts issued in connection with a pension, profit sharing, or annuity plan established by an employer for employees if contributions by such employer thereunder are deductible by such employer in determining such employer's net income as defined in section 39-22-304, and shall not apply to premiums collected or contracted for after December 31, 1968, on policies or contracts purchased for an employee by an employer if such employer is exempt under section 39-22-112 from the tax imposed by article 22 of title 39, or is a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. The tax imposed by this section shall not apply to annuity considerations collected or contracted for after December 31, 1976, except to the extent provided in subsection (2) of this section and except for taxes that are due and payable for the calendar year 2021 and each calendar year thereafter, this exemption only applies to annuity considerations that are used as qualified funding assets under section 130 of the internal revenue code or annuity considerations that are purchased in connection with:   A plan under section 401 (a) of the federal “Internal Revenue Code of 1986”, as amended;    A Roth 401(k) under section 402A of the federal “Internal Revenue Code of 1986”, as amended;    A tax-sheltered annuity plan under section 403 (b) of the federal “Internal Revenue Code of 1986”, as amended;    An individual retirement account under section 408 (a) of the federal “Internal Revenue Code of 1986”, as amended;    An individual retirement annuity under section 408 (b) of the federal “Internal Revenue Code of 1986”, as amended;    A simplified employee pension under section 408 (k) of the federal “Internal Revenue Code of 1986”, as amended;    A simple retirement account under section 408 (p) of the federal “Internal Revenue Code of 1986”, as amended;    A deferred compensation plan under section 457 of the federal “Internal Revenue Code of 1986”, as amended;    (I) A Roth 457 under section 457 of the federal “Internal Revenue Code of 1986”, as amended; and       Repealed.       The taxes provided for in this section shall be due and payable on the first day of March in each year. Any company failing or refusing to render such statement and information, or to pay taxes as specified in this section, for more than thirty days after the time specified, shall be liable to a penalty of up to one hundred dollars for each additional day of delinquency, to be assessed by the commissioner. If the tax paid is less than the full amount prescribed by this section, interest at the rate of one percent per month or fraction thereof on the unpaid amount shall be charged from the date on which payment was due to the date on which full payment is made, and a penalty of up to twenty-five percent of the unpaid amount may be assessed by the commissioner. The commissioner may suspend the certificate of authority of a delinquent company until such taxes and penalty, should any penalty be imposed, are fully paid.    In computing assets for the purpose of this section, the investments of any such company in the bonds, notes, or other obligations of the United States of America, or any instrumentality of the United States, the obligations of which are guaranteed by the United States, and deferred or uncollected insurance premiums and annuity considerations shall first be deducted. Any company claiming entitlement to any reduced rate provided in this section shall present such evidence in justification of its claim as may be required by the commissioner.    For the purpose of obtaining the exemption provided in paragraph (d)(III) of this subsection (1), the term “other property within this state” means: Real estate and tangible personal property within this state; first mortgages upon real estate within this state; stocks or bonds of corporations organized under the laws of this state; deposits with banks, trust companies, savings and loan associations, building and loan associations, or financial institutions domiciled within this state; stocks or bonds of foreign or alien corporations which on the date of purchase of such stocks or bonds have fifty percent or more of their assets invested in this state; and accounts of agents who are residents of this state.       When, by the laws of any other state, any taxes and fees in the aggregate, fines, penalties, deposits of money or securities or other obligations, prohibitions, or requirements are imposed upon insurers organized under any law of this state and transacting business in such other state, or upon the agents of such insurer, greater in aggregate amount than those imposed upon similar insurers by the laws of this state, or when the laws of any other state require insurers of this state to deposit money or security for the benefit or protection of citizens of such other state, or when the laws or officers of any other state prohibit insurers of this state from transacting business therein without a special examination of the insurers or a computation of their liabilities by the officers of that state, the same taxes and fees in the aggregate, fines, penalties, deposits, examinations, obligations, and requirements may be imposed by the commissioner upon all insurers doing business in this state that are incorporated or organized under the laws of such other state and upon their agents. For the purpose of this section, an alien insurer may be deemed to be domiciled in a state designated by it wherein it has established its principal office or agency in the United States or maintains the largest amount of its assets. If no such office or agency is established, its domicile is the country under laws of which it is formed.      Anything in subsection (1) of this section to the contrary notwithstanding, any insurance company doing business in this state which was liable for payment of more than five thousand dollars in taxes, as provided in this section, during the preceding calendar year shall, on and after January 1, 1971, pay quarterly estimates of such taxes as provided in paragraphs (b) to (d) of this subsection (3).    Such estimated taxes shall become due and payable on the last day of the month following the close of any calendar quarter of the year, except for the fourth quarter which shall be due March 1 and shall include adjustments for the preceding calendar year. Any company failing or refusing to pay such estimated taxes for more than thirty days after the time specified shall be liable to a penalty of up to one hundred dollars for each additional day of delinquency, to be assessed by the commissioner. Failure of a company to make quarterly payments, if required, each payment to be of at least one-fourth of either the total tax paid during the preceding calendar year or eighty percent of the actual quarterly tax for the current calendar year, whichever is lesser, shall be considered and treated the same as a failure or refusal to pay the estimated taxes and shall subject the company to the penalties provided in this subsection (3)(b). The amount of estimated taxes and the penalties collected shall be paid to the division of insurance; and the commissioner may suspend the certificate of authority of such delinquent company until such estimated taxes and penalty, should any penalty be imposed, are fully paid.    Estimated taxes paid pursuant to this subsection (3) shall be based on the estimated amount of taxable premiums during the preceding calendar quarter. Calendar quarter estimates of taxes may include adjustments for any previous calendar quarter estimates of taxes and allowable tax credits claimed by the company in accordance with part 1 of article 3.5 of title 10, part 2 of article 36 of title 24, part 2 of article 46 of title 24, part 21 of article 22 of title 39, or any other law authorizing a credit against premium tax liability. Estimated taxes shall be paid on the basis of such adjusted estimates.      Adjustments in payments of estimated taxes for any calendar year shall be made at the time of the filing of the annual statement required under section 10-3-208 and the payment of taxes required by this section. If, upon the filing of the annual statement, a company has overpaid its taxes for any calendar year, the company may either apply the overpayment to its calendar quarter estimates of taxes in a subsequent calendar year or claim a refund for the amount of the overpayment. If a company claims a refund, it shall file for such refund at the time of filing such annual statement, and, if the commissioner claims a deficiency, the commissioner shall notify the deficient company thereof. (d) (I) Adjustments in payments of estimated taxes for any calendar year shall be made at the time of the filing of the annual statement required under section 10-3-208 and the payment of taxes required by this section. If, upon the filing of the annual statement, a company has overpaid its taxes for any calendar year, the company may either apply the overpayment to its calendar quarter estimates of taxes in a subsequent calendar year or claim a refund for the amount of the overpayment. If a company claims a refund, it shall file for such refund at the time of filing such annual statement, and, if the commissioner claims a deficiency, the commissioner shall notify the deficient company thereof.    In calculating the amount of a refund claimed pursuant to subsection (3)(d)(I) of this section, the value of a nonrefundable tax credit claimed by the company must be applied first to the company's total tax liability, prior to applying any other payment made by the company regardless of the order in which such payments or credits were received. The refund must not exceed the total amount of any additional payments made by the company.            The division of insurance shall transmit all taxes, penalties, and fines it collects under this section to the state treasurer for deposit in the general fund; except that the state treasurer shall deposit amounts in the specified cash funds as follows:   In the division of insurance cash fund created in section 10-1-103 (3), an amount that is equal to the general assembly's appropriation from the fund to the division for its direct and indirect expenditures less the total fee revenue that is deposited in the fund; except that the amount deposited in the fund under this subparagraph (I) shall not exceed five percent of all taxes collected under this section;    In the wildfire emergency response fund created in section 24-33.5-1226 and the wildfire preparedness fund created in section 24-33.5-1227, the amount of the taxes, penalties, and fines that the general assembly appropriates to each of the cash funds; and    (A) For the 2020-21 state fiscal year and each state fiscal year thereafter, in the health insurance affordability cash fund created in section 10-16-1206, an amount equal to the amount of premium taxes collected pursuant to this section in the 2020 calendar year or any subsequent calendar year that exceeds the amount of premium taxes collected pursuant to this section in the 2019 calendar year, subject to subsection (4)(a)(III)(B) of this section.       Repealed.       For the purpose of auditing a company's tax statement, the commissioner or the commissioner's designee, which may include an independent examiner under section 10-1-204 (6), has the power to examine any books, papers, records, agreements, or memoranda bearing upon the matters required to be included in the tax statement. Such books, papers, records, agreements, or memoranda shall be made available upon request to the commissioner's office or the commissioner's designee.     Premium collected or contracted for during: Rate of tax: 1996 2.20% 1997 2.15% 1198 2.10% 1999 2.05% 2000 and thereafter 2.00%   (A) Two percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2022;   (B) Two and one-quarter percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2023; and   (J) A qualified retirement plan not specified in this subsection (1)(d)(IV) or a Roth version of any qualified retirement plan.   History. Source: L. 13: P. 332, § 16. C.L. § 2486. L. 33: P. 636, § 1. CSA: C. 87, § 14. L. 41: P. 515, § 1. L. 53: P. 378, § 1. CRS 53: § 72-1-14. L. 55: P. 443, § 1. L. 59: P. 505, § 1. L. 60: P. 149, § 1. L. 61: P. 438, § 1. L. 63: P. 568, §§ 1, 2. C.R.S. 1963: § 72-1-14. L. 65: P. 755, § 1. L. 69: Pp. 504-506, §§ 1-4, 1. L. 70: P. 243, § 1. L. 71: P. 694, § 1. L. 73: Pp. 833, 834, §§ 1, 2. L. 75: (1)(c) amended, p. 310, § 55, effective September 1. L. 77: (1)(d)(IV) amended, p. 504, § 1, effective June 21. L. 81: (1)(d)(IV) and (3)(b) amended, p. 525, § 1, effective May 13. L. 86: (1)(d)(V) added, p. 549, § 2, effective July 1. L. 87: (1)(d)(IV) amended, p. 1451, § 27, effective June 22. L. 90: (1)(c) amended, p. 558, § 14, effective July 1. L. 92: (1)(b)(II), (1)(c), and (4) amended, p. 1548, § 38, effective May 20. L. 95: (1)(b)(I) amended, p. 490, § 4, effective May 16. L. 96: (1)(a) and (1)(b) amended, p. 551, § 1, effective April 24. L. 97: (5) added, p. 531, § 4, effective April 24. L. 2000: (1)(a) amended, p. 1616, § 2, effective August 2. L. 2003: (1)(a) amended, p. 616, § 9, effective July 1. L. 2004: (1)(c) amended, p. 900, § 15, effective May 21. L. 2012: (1)(c) amended,(HB 12-1266), ch. 280, p. 1505, § 28, effective July 1. L. 2013: (4) amended,(SB 13-270), ch. 250, p. 1316, § 5, effective May 23. L. 2014: (4)(a) amended,(HB 14-1195), ch. 117, p. 418, § 1, effective July 1. L. 2016: (1)(b) amended,(SB 16-165), ch. 278, p. 1145, § 1, effective January 1, 2017. L. 2019: (4)(a) amended,(HB 19-1168), ch. 204, p. 2187, § 2, effective May 17. L. 2020: (4)(a)(III) amended,(SB 20-215), ch. 201, p. 1001, § 10, effective June 30. L. 2020, 1st Ex. Sess.: (3)(b), (3)(c), and (3)(d) amended, (HB 20B-1006), ch. 5, p. 31, § 1, effective December 7. L. 2021: (1)(a) amended,(HB 21-1311), ch. 298, p. 1786, § 12, effective June 23; IP(1)(b)(II), (1)(d)(IV), and (5) amended and (1)(b)(II.5) and (1)(b)(II.7) added,(HB 21-1312), ch. 299, p. 1789, § 2, effective July 1. History. Source: L. 13: P. 332, § 16. C.L. § 2486. L. 33: P. 636, § 1. CSA: C. 87, § 14. L. 41: P. 515, § 1. L. 53: P. 378, § 1. CRS 53: § 72-1-14. L. 55: P. 443, § 1. L. 59: P. 505, § 1. L. 60: P. 149, § 1. L. 61: P. 438, § 1. L. 63: P. 568, §§ 1, 2. C.R.S. 1963: § 72-1-14. L. 65: P. 755, § 1. L. 69: Pp. 504-506, §§ 1-4, 1. L. 70: P. 243, § 1. L. 71: P. 694, § 1. L. 73: Pp. 833, 834, §§ 1, 2. L. 75: (1)(c) amended, p. 310, § 55, effective September 1. L. 77: (1)(d)(IV) amended, p. 504, § 1, effective June 21. L. 81: (1)(d)(IV) and (3)(b) amended, p. 525, § 1, effective May 13. L. 86: (1)(d)(V) added, p. 549, § 2, effective July 1. L. 87: (1)(d)(IV) amended, p. 1451, § 27, effective June 22. L. 90: (1)(c) amended, p. 558, § 14, effective July 1. L. 92: (1)(b)(II), (1)(c), and (4) amended, p. 1548, § 38, effective May 20. L. 95: (1)(b)(I) amended, p. 490, § 4, effective May 16. L. 96: (1)(a) and (1)(b) amended, p. 551, § 1, effective April 24. L. 97: (5) added, p. 531, § 4, effective April 24. L. 2000: (1)(a) amended, p. 1616, § 2, effective August 2. L. 2003: (1)(a) amended, p. 616, § 9, effective July 1. L. 2004: (1)(c) amended, p. 900, § 15, effective May 21. L. 2012: (1)(c) amended,(HB 12-1266), ch. 280, p. 1505, § 28, effective July 1. L. 2013: (4) amended,(SB 13-270), ch. 250, p. 1316, § 5, effective May 23. L. 2014: (4)(a) amended,(HB 14-1195), ch. 117, p. 418, § 1, effective July 1. L. 2016: (1)(b) amended,(SB 16-165), ch. 278, p. 1145, § 1, effective January 1, 2017. L. 2019: (4)(a) amended,(HB 19-1168), ch. 204, p. 2187, § 2, effective May 17. L. 2020: (4)(a)(III) amended,(SB 20-215), ch. 201, p. 1001, § 10, effective June 30. L. 2020, 1st Ex. Sess.: (3)(b), (3)(c), and (3)(d) amended, (HB 20B-1006), ch. 5, p. 31, § 1, effective December 7. L. 2021: (1)(a) amended,(HB 21-1311), ch. 298, p. 1786, § 12, effective June 23; IP(1)(b)(II), (1)(d)(IV), and (5) amended and (1)(b)(II.5) and (1)(b)(II.7) added,(HB 21-1312), ch. 299, p. 1789, § 2, effective July 1.    Editor's note:    Subsection (1)(d)(V)(B) provided for the repeal of subsection (1)(d)(V), effective July 1, 1989. (SeeL. 86, p. 549.)    Subsection (4)(b)(II) provided for the repeal of subsection (4)(b), effective July 1, 2014. (SeeL. 2013, p. 1316.)     Cross references:    For required equality as to liabilities under subsection (1)(b) imposed by statute on domestic and foreign corporations, see article 115 of title 7; for legal effect, when discrimination exists, see American Smelting & Refining v. Colorado, 204 U.S. 103, 27 S. Ct. 198, 51 L. Ed. 393; for annual financial statements, see § 10-3-208.    For the legislative declaration in HB 21-1311, see section 1 of chapter 298, Session Laws of Colorado 2021. For the legislative declaration in HB 21-1312, see section 1 of chapter 299, Session Laws of Colorado 2021.     ANNOTATION   The primary object and purpose of this section is to regulate insurance companies and the insurance business in the state. It is a regulation or supervision tax, and the method of arriving at the amount, or because of its operation the act produces an excess which is required to be turned in to the general fund, does not affect its validity or render it an act for revenue. French v. People, 6 Colo. App. 311, 40 P. 463 (1895); Colo. Nat'l Life Assurance Co. v. Clayton, 54 Colo. 256 , 130 P. 330 (1913).   The intent is to create a fund for this purpose and for the maintenance of the insurance department. Colo. Nat'l Life Assurance Co. v. Clayton, 54 Colo. 256 , 130 P. 330 (1913).   Company is liable for tax on premium fixed in policy. It appears quite clearly that the plain intent of this section is that the company should be liable to pay the tax on the premium fixed in the policy, for that is the premium contracted for in the policy for each and every year until it matures. Were it not so intended certainly an exemption from liability on account of dividends would have been provided for in the statute. Cochrane v. Nat'l Life Ins. Co., 77 Colo. 243 , 235 P. 569 (1925); Prudential Ins. Co. v. Kavanaugh, 125 Colo. 93 , 240 P.2d 508 (1952).   Dividends should be considered as premiums collected or contracted for during the year, and the company is liable for the tax thereon. Cochrane v. Nat'l Life Ins. Co., 77 Colo. 243 , 235 P. 569 (1925).   But not to any subsequent divisible surplus. The tax provided for by this section should be applied solely on the premium contracted for in the policy, and not to any subsequent divisible surplus made applicable to the policyholder in the form of a dividend when such dividend was used to purchase paid-up additional insurance. Prudential Ins. Co. v. Kavanaugh, 125 Colo. 93 , 240 P.2d 508 (1952).   The state is not bound by an erroneous interpretation of a taxing statute such as this section by one of its officers or agents. Beery v. Am. Liberty Ins. Co., 150 Colo. 499 , 375 P.2d 93 (1962).   The obvious reason for subparagraph (III) of subsection (1)(d) is to encourage insurance companies to invest their assets in Colorado. Beery v. Am. Liberty Ins. Co., 150 Colo. 499 , 375 P.2d 93 (1962).   The only bonds to be included under this paragraph are bonds of the state of Colorado or any of its counties, cities, towns, or districts. Beery v. Am. Liberty Ins. Co., 150 Colo. 499 , 375 P.2d 93 (1962).   Not bonds of the United States or of other states. All bonds except so called “Colorado” bonds in effect having been specifically excluded by this section, bonds of the United States, or of any of the other 49 states for that matter, are not “other property within this state”. Beery v. Am. Liberty Ins. Co., 150 Colo. 499 , 375 P.2d 93 (1962).   Subsection (1)(c) held unconstitutional as applied to Denver, therefore must be viewed as to be limited to counties and statutory cities and towns. State Farm Mut. Auto. Ins. Co. v. Temple, 176 Colo. 537 , 491 P.2d 1371 (1971).   Denver has enacted a sales and use tax. The exemption granted in subsection (1)(c) has been superseded within Denver by the enactment of local sales and use taxes. Sec. Life & Accident Co. v. Temple, 177 Colo. 14 , 492 P.2d 63 (1972).   Insurance companies do not fall within the classifications of the entities exempted under the sales and use tax. Sec. Life & Accident Co. v. Heckers, 177 Colo. 455 , 495 P.2d 225 (1972).   Taxation is the rule and exemption therefrom the exception. Sec. Life & Accident Co. v. Heckers, 177 Colo. 455 , 495 P.2d 225 (1972).   The burden is on the taxpayer who claims an exemption to clearly establish the right to such exemption. Sec. Life & Accident Co. v. Heckers, 177 Colo. 455 , 495 P.2d 225 (1972).   Premiums under medical disaster insurance fund act subject to taxation. The payment of the tax on premiums collected under this section is not to be interpreted as exempting the tax on premiums collected under the medical disaster insurance fund act by those insurance companies which write workmen's compensation insurance. Sec. Life & Accident Co. v. Heckers, 177 Colo. 455 , 495 P.2d 225 (1972).   This does not indicate exemption from sales and use tax. This section, by expressly subjecting insurance companies to the special premium tax under the medical disaster insurance fund act, does not show an intent on the part of the general assembly to exempt insurance companies from the sales and use tax. Sec. Life & Accident Co. v. Heckers, 177 Colo. 455 , 495 P.2d 225 (1972).   Subparagraph (I) of subsection (1)(d) exempts fraternal organization from taxation. The general assembly imposes a tax upon gross premium income of insurance companies. Fraternal and benevolent corporations defined as those which have a lodge system with a ritualistic form of work and representative form of government are exempted. It has clearly defined what is meant by “lodge system” and “representative government”. Since the reorganization, Homesteaders has not had a lodge system; it has not had a representative form of government; nor has it performed any ritualistic work. These are requirements essential to a status that would exempt it from the tax under discussion. Beery v. Homesteaders Life Co., 146 Colo. 218 , 361 P.2d 127 (1961).   Once it becomes mutual life insurance company, it loses exemption. Where a fraternal benefit society has reorganized and becomes a mutual life insurance company, has abandoned its lodge system and ritualistic work, and discontinued its representative form of government, it is obligated to pay taxes on the gross premiums received by it following reorganization on the old certificates issued as a fraternal benefit society. Beery v. Homesteaders Life Co., 146 Colo. 218 , 361 P.2d 127 (1961).