2023 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,  the  power
authority of New York or any statutory subsidiary thereof, 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.