NY Tax L § 1500 (2021)
2021 New York Laws TAX - Tax Article 33 - Franchise Taxes on Insurance Corporations 1500 - General Definitions.

Section  1500.  General  definitions.  The following words, as used in this article, shall have the meanings hereinafter set forth.  (a)  The  term  "insurance  corporation"   includes   a   corporation, association,  joint  stock  company  or  association,  person,  society, aggregation or partnership, by whatever name known, doing  an  insurance business, and, notwithstanding the provisions of section fifteen hundred twelve  of  this  article,  shall  include (1) a risk retention group as defined in subsection (n) of section five thousand nine hundred  two  of the  insurance  law, (2) the state insurance fund and (3) a corporation, association,  joint  stock  company  or  association,  person,  society, aggregation  or  partnership  doing an insurance business as a member of the New York insurance exchange described in section  six  thousand  two hundred one of the insurance law. The definition of the "state insurance fund"  contained  in  this subdivision shall be limited in its effect to the provisions of this  article  and  the  related  provisions  of  this chapter  and  shall  have no force and effect other than with respect to such provisions. The term "insurance corporation" shall also  include  a captive insurance company doing a captive insurance business, as defined in  subsections (c) and (b), respectively, of section seven thousand two of the insurance law; provided, however, "insurance  corporation"  shall not  include  the  metropolitan  transportation  authority,  or a public benefit corporation or not-for-profit corporation formed by a city  with a  population  of  one  million  or  more  pursuant to subsection (a) of section seven thousand five of the  insurance  law,  each  of  which  is expressly exempt from the payment of fees, taxes or assessments, whether state  or  local;  and provided further "insurance corporation" does not include any combinable captive insurance company.  The  term  "insurance corporation"  shall  also include an unauthorized insurer operating from an office within the state, pursuant to paragraph five of subsection (b) of section one thousand one hundred one and subsection  (i)  of  section two  thousand  one  hundred  seventeen  of  the  insurance law. The term "insurance corporation" also includes a health maintenance  organization required  to  obtain a certificate of authority under article forty-four of the public health law.  (b) The term  "domestic  insurance  corporation"  means  an  insurance corporation  incorporated  or  organized  under  the laws of this state. Provided, however, the savings banks life insurance fund and savings and insurance banks which are authorized to transact the business authorized by the provisions of article six-a of the banking law shall  be  subject to  taxation  as  domestic  insurance  corporations  on  such  insurance business under this article.  (c) The  term  "foreign  insurance  corporation"  means  an  insurance corporation  incorporated or organized under the laws of any other state of the United States, the District of Columbia or  the  Commonwealth  of Puerto Rico.  (d)   The  term  "alien  insurance  corporation"  means  an  insurance corporation incorporated or  organized  under  the  laws  of  any  other foreign  nation,  or of any province or territory not included under the definition of "foreign insurance corporation."  (e) The term "taxpayer" means any insurance corporation subject to the tax imposed under section fifteen hundred one, fifteen hundred two-a, or fifteen hundred ten or any captive insurance company subject to the  tax imposed under section fifteen hundred two-b of this article.  (f)  The  term  "taxable  year"  means the taxpayer's taxable year for federal income tax purposes,  or  the  part  thereof  during  which  the taxpayer is subject to the tax under this article.  (g)  The  term  "subsidiary"  means  a corporation of which over fifty percent of the number of shares of stock entitling the  holders  thereof  to  vote  for  the  election  of  directors  or trustees is owned by the taxpayer.  (h)  The  term  "subsidiary capital" means investments in the stock of subsidiaries  and  any  indebtedness  from  subsidiaries,  exclusive  of accounts receivable acquired in the ordinary course of trade or business for  services  rendered or for sales of property held primarily for sale to customers, whether or not evidenced by a written instrument, on which interest is not claimed and deducted by the subsidiary for  purposes  of taxation  under  any article of this chapter, provided, however, that in the discretion of the tax  commission,  there  shall  be  deducted  from subsidiary  capital  any  liabilities  payable  by their terms on demand within one year from the date incurred, other  than  loans  or  advances outstanding  for  more  than  one year as of any date during the taxable year covered  by  the  return,  which  are  attributable  to  subsidiary capital.  (i)  The  term "investment capital" means investments in stocks, bonds and other securities, corporate and governmental, not held for  sale  to customers  in  the  regular  course of business, exclusive of subsidiary capital and stock issued by the taxpayer, provided, however, that in the discretion  of  the  tax  commission,  there  shall  be  deducted   from investment  capital  any liabilities payable by their terms on demand or within one year from the date incurred, other  than  loans  or  advances outstanding  for more than a year as of any date during the year covered by the return, which are attributable to investment  capital,  provided, also,  there shall be excluded from investment capital, such investments which are held to maintain  reserves  of  the  taxpayer  required  under sections  one  thousand  three hundred three, one thousand three hundred four and one thousand three hundred five of the insurance law.  (j)  The  term  "business  capital"  means  all  assets,  other   than subsidiary capital, investment capital and stock issued by the taxpayer, less  liabilities  not  deducted  from  subsidiary or investment capital which are payable by their terms on demand or within one year  from  the date  incurred, other than loans or advances outstanding for more than a year as of any date during the year covered by the return,  except  that cash  on  hand  and  on  deposit  shall  be  treated as investment or as business capital as the taxpayer  may  elect,  provided,  however,  that there shall be excluded from business capital such assets which are held to  maintain  reserves  of  the  taxpayer  required  under  sections one thousand three hundred three, one thousand three hundred  four  and  one thousand three hundred five of the insurance law.  (k)  The  term  "special  risk  premium" means any premium received on insurance provided the insurance is exempt from the filing  requirements with  respect  to rates and policy forms pursuant to article sixty-three of the insurance law.