California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 6.2 - Reporting and Filing Premium Taxes › Section 2327 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Unless the context otherwise requires, the definitions set
					 forth in this section govern the construction of this article.
(a)
Accrual basis
. Accrual
				  basis accounting is a method of calculating premium tax based upon premiums, as
				  identified on Schedule T of the insurer's Annual Statement, that are written by
				  the insurer during a given tax year.
(b)
Cash Basis
. Cash basis
				  accounting is a method of calculating premium tax based upon premiums that are
				  received and collected by the insurer during a given tax year, less any
				  premiums returned during the same tax year.
(c)
Collected Direct
				  Premiums
. For purposes of this Article, the term Collected Direct
				  Premiums or premiums received is defined as that portion of premiums directly
				  written by the Insurer, including any consideration that was due on or before
				  the end of the tax year for which the insurer is filing, and for which the
				  insurer has received payment.
(d)
Direct Premiums
. Direct Premiums means premiums written and/or
				  received in transactions conducted directly with the insured, but does not
				  include premiums written on reinsurance business.
(e)
Gross Premiums
. For
				  purposes of this Article, the term gross premiums as referenced in California
				  Revenue and Taxation Code section
				  12221,
				  does not include premiums received for reinsurance, ocean marine insurance,
				  title insurance, or surplus line transactions.
(f)
Insurer
. For purposes of
				  this Article, the term Insurer is defined by California Insurance Code Section
				  23, and
				  includes those listed in California Revenue and Taxation Code Section
				  12003,
				  however, it does not include those transacting ocean marine insurance or title
				  insurance.
(g)
NAIC
. The NAIC is the National Association of Insurance
				  Commissioners, which is an organization of insurance regulators from the 50
				  states, the District of Columbia and the five U.S. territories.
(h)
NAIC Annual Statement Schedule
				  T
. The NAIC Annual Statement Schedule T is an NAIC schedule found in
				  the NAIC Annual Statement Blanks that is intended to exhibit the amount of
				  premiums written, allocated by states and territories.
(i)
Open tax year
. An open
				  tax year is any taxable year that is not covered by the limitations found in
				  California Revenue and Taxation Code Section
				  12978.
(j)
Premium Collection
				  Activity
. For purposes of this Article, the term Premium Collection
				  Activity includes any or all of the following: insurance lines and types,
				  billing plans, payment plans, and bad debt percentage.
(k)
Uncollected Direct
				  Premiums
. For purposes of this Article, the term Uncollected Direct
				  Premiums is defined as that portion of premiums and consideration that was
				  directly written by the Insurer and was due on or before the end of the tax
				  year for which the insurer is filing, but for which the insurer has not
				  received payment.
1. New
					 article 6.2 (sections
					 2327-2327.2) and section filed
					 8-22-2012; operative 9-21-2012 (Register 2012, No.
					 34).
Note: Authority cited: Section
						13170,
						Revenue and Taxation Code. Reference: Article XIII, Section
						28, California Constitution;
						Sections
						12001,
						12003,
						12201,
						12221,
						12231,
						12232,
						12302,
						12303,
						12304,
						12421
						and
						12422,
						Revenue and Taxation Code; Sections
						19,
						20,
						21,
						24,
						28,
						47,
						736,
						1530 and
						12740,
						Insurance Code.