California Code
DIVISION 2 - OTHER TAXES
PART 7 - INSURANCE TAXATION

CHAPTER 1 - General Provisions

ARTICLE 1 - Definitions

Section 12001. - 12001. Unless the context otherwise requires, the definitions set forth...

Section 12002. - 12002. “Ocean marine insurance” means insurance written within this state...

Section 12003. - 12003. “Insurer” as used in this part includes each of...

Section 12004. - 12004. “Marine insurer” means an insurer transacting ocean marine insurance....

Section 12005. - 12005. “Taxes” means the taxes assessed and levied, or which...

Section 12006. - 12006. “Board” means the State Board of Equalization. (Added by...

Section 12007. - 12007. “Commissioner” means the State Insurance Commissioner. (Added by Stats....

Section 12008. - 12008. “Controller” means the State Controller. (Added by Stats. 1961,...

Section 12009. - 12009. (a) “Medi-Cal managed care plan” or “plan” means any...

CHAPTER 2 - Ocean Marine Insurance

ARTICLE 1 - Definitions

Section 12071. - 12071. The definitions contained in this article apply with respect...

Section 12072. - 12072. “Current calendar year” means the calendar year for which...

Section 12073. - 12073. “Underwriting profit,” as respects any one calendar year, means...

Section 12074. - 12074. “Net earned premiums” means the amount arrived at by:...

Section 12075. - 12075. “Losses incurred” means gross losses incurred during the current...

Section 12076. - 12076. “Expenses incurred” includes specific and general expenses incurred in...

Section 12077. - 12077. “Specific expenses” means expenses incurred directly and specifically in...

Section 12078. - 12078. “General expenses” means the portion of expenses not chargeable...

ARTICLE 2 - Basis of Tax for Ocean Marine Insurance

Section 12101. - 12101. Every insurer transacting the business of ocean marine insurance...

Section 12102. - 12102. The tax is in lieu of all other state,...

Section 12103. - 12103. Except as otherwise provided in Section 12105, the tax...

Section 12104. - 12104. If the insurer has transacted ocean marine insurance in...

Section 12105. - 12105. If the insurer has not transacted ocean marine insurance...

Section 12106. - 12106. In computing the tax of a marine insurer issuing...

Section 12107. - 12107. Whenever in this part the date, April 1st, is...

CHAPTER 3 - All Insurance Other Than Ocean Marine

ARTICLE 1 - General

Section 12201. - 12201. (a) Every insurer doing business in this state shall...

Section 12202. - 12202. The rate of tax to be applied to the...

Section 12202.1. - 12202.1. Notwithstanding the rate specified by Section 12202, the gross...

Section 12203. - 12203. The State Compensation Insurance Fund shall annually pay a...

Section 12204. - 12204. (a) The tax imposed on insurers by this chapter...

Section 12205. - 12205. It is the intent of the Legislature that the...

Section 12206. - 12206. (a) (1) There shall be allowed as a credit...

Section 12207. - 12207. (a) For the taxable years beginning on or after...

Section 12208. - 12208. (a) There shall be allowed as a credit against...

Section 12209. - 12209. (a) Notwithstanding Sections 12207 and 12208 to the contrary,...

Section 12210. - 12210. (a) A life insurer or life insurance agent shall...

ARTICLE 2 - Basis of Tax for Other Than Title Insurers

Section 12221. - 12221. In the case of an insurer not transacting title...

Section 12222. - 12222. Funds accepted by a life insurer under an agreement...

ARTICLE 3 - Basis of Tax for Title Insurers

Section 12231. - 12231. In the case of an insurer transacting title insurance...

Section 12232. - 12232. “Investments,” as used in Section 12231, includes property acquired...

ARTICLE 4 - Basis of Tax for Medi-Cal Managed Care Plans

Section 12240. - 12240. In the case of a Medi-Cal managed care plan,...

Section 12241. - 12241. For purposes of this article, “total operating revenue” means...

Section 12242. - 12242. This article shall be operative on July 1, 2012....

ARTICLE 5 - Prepayments

Section 12251. - 12251. (a) Each calendar year, insurers transacting insurance in this...

Section 12253. - 12253. (a) Each insurer required to make prepayments shall remit...

Section 12254. - 12254. (a) The amount of each prepayment shall be 25...

Section 12255. - 12255. The commissioner, for good cause shown, may extend for...

Section 12256. - 12256. All amounts paid under this article, other than penalties...

Section 12257. - 12257. (a) If the total amount of prepayments for any...

Section 12258. - 12258. (a) Any insurer that fails to pay any prepayment...

Section 12259. - 12259. The provisions of this article apply to the State...

Section 12260. - 12260. (a) Notwithstanding any other provision of this article, the...

CHAPTER 3.5 - Retaliatory Taxes, Licenses and Fees

Section 12281. - 12281. Annually, on or before April 1, each insurer subject...

Section 12287. - 12287. Except for the retaliatory tax due on ocean marine...

Section 12288. - 12288. Deficiency assessments for retaliatory taxes may be made in...

Section 12289. - 12289. All provisions of this part not in conflict with...

CHAPTER 4 - Assessment and Effect of Tax

ARTICLE 1 - Tax Returns and Initial Payments

Section 12301. - 12301. (a) The taxes imposed upon insurers by Section 28...

Section 12302. - 12302. (a) On or before April 1 (or June 15...

Section 12303. - 12303. (a) Every return required by this article to be...

Section 12304. - 12304. (a) Blank forms of returns shall be furnished by...

Section 12305. - 12305. (a) The insurer required to file a return shall...

Section 12306. - 12306. The commissioner, for good cause shown, may extend for...

Section 12307. - 12307. (a) Any insurer that is granted an extension shall...

ARTICLE 2 - Initial Assessments

Section 12411. - 12411. A duplicate copy of each tax return received by...

Section 12412. - 12412. (a) Upon receipt of the duplicate copy of the...

Section 12413. - 12413. (a) The board shall promptly transmit notice of its...

Section 12414. - 12414. In making an initial assessment the board may offset...

ARTICLE 3 - Deficiency Assessments

Section 12421. - 12421. (a) As soon as practicable after an insurer’s or...

Section 12422. - 12422. (a) If the commissioner determines that the amount of...

Section 12423. - 12423. (a) If an insurer or surplus line broker fails...

Section 12424. - 12424. The board shall make a deficiency assessment on the...

Section 12425. - 12425. One or more deficiency assessments may be proposed or...

Section 12426. - 12426. In making a deficiency assessment the board may offset...

Section 12427. - 12427. (a) The board shall promptly notify the insurer or...

Section 12428. - 12428. (a) An insurer or surplus line broker against which...

Section 12429. - 12429. (a) If a petition for redetermination of a deficiency...

Section 12430. - 12430. The board may decrease or increase the amount of...

Section 12431. - 12431. (a) The order or decision of the board upon...

Section 12432. - 12432. Except for a notice given pursuant to Section 12430...

Section 12433. - 12433. (a) If before the expiration of the time prescribed...

Section 12434. - 12434. (a) Any notice required by this article shall be...

Section 12435. - 12435. A copy of each notice of a deficiency assessment...

ARTICLE 4 - Effect of Tax

Section 12491. - 12491. (a) Every tax levied upon an insurer under the...

Section 12492. - 12492. Every lien attaches as of 12:01 a.m. on the...

Section 12493. - 12493. (a) Every lien has the effect of an execution...

Section 12494. - 12494. (a) No judgment is satisfied nor lien removed until...

Section 12495. - 12495. No court shall make and enter a final discharge...

CHAPTER 5 - Payment and Collection

ARTICLE 1 - Generally

Section 12601. - 12601. (a) Amounts of taxes, interest, and penalties not remitted...

Section 12602. - 12602. (a) On and after January 1, 1994, and before...

ARTICLE 2 - Interest and Penalties

Section 12631. - 12631. (a) Any insurer that fails to pay any tax,...

Section 12631.5. - 12631.5. (a) If the department finds, taking into account all...

Section 12632. - 12632. (a) An insurer that fails to pay any deficiency...

Section 12633. - 12633. When a deficiency assessment is made on the basis...

Section 12634. - 12634. When a deficiency assessment is made on the basis...

Section 12635. - 12635. If any part of a deficiency for which a...

Section 12636. - 12636. (a) If the board finds that an insurer’s failure...

Section 12636.5. - 12636.5. (a) Every payment on an insurer’s or surplus line...

Section 12637. - 12637. If the board finds that a person’s failure to...

ARTICLE 3 - Suits for Taxes

Section 12676. - 12676. At any time within four years after any amount...

Section 12677. - 12677. The provisions of the Code of Civil Procedure relating...

Section 12678. - 12678. The Attorney General shall prosecute the action. (Added by...

Section 12679. - 12679. (a) If an insurer’s right to do business has...

Section 12680. - 12680. A writ of attachment may be issued in the...

Section 12681. - 12681. (a) In the action, a certificate of the Controller...

Section 12682. - 12682. Payment of the amount of the judgment recovered in...

ARTICLE 4 - Recovery of Erroneous Refunds

Section 12691. - 12691. The Controller may recover any refund or part thereof...

CHAPTER 6 - Suspension of Rights of Delinquent Insurers

ARTICLE 1 - Revocation of Certificate of Authority

Section 12801. - 12801. (a) Annually, between December 10th and 15th, the Controller...

Section 12802. - 12802. The commissioner shall give at least 10 days’ notice...

Section 12803. - 12803. An insurer whose certificate of authority has been revoked...

ARTICLE 2 - Suspended Corporate Insurers

Section 12832. - 12832. Every person who attempts or purports to exercise any...

Section 12833. - 12833. The county in which occurs any part of the...

Section 12834. - 12834. The certified copies of lists of corporations which have...

CHAPTER 7 - Cancellations and Refunds

ARTICLE 1 - Cancellations

Section 12951. - 12951. (a) If any amount has been illegally assessed, the...

Section 12952. - 12952. If the commissioner discovers an amount assessed by the...

ARTICLE 2 - Refund or Credit for Collected Taxes

Section 12977. - 12977. (a) If the board determines that any tax, interest,...

Section 12978. - 12978. No credit or refund shall be allowed or approved...

Section 12979. - 12979. Every claim for refund or credit shall be in...

Section 12980. - 12980. Failure to file a claim for refund or credit...

Section 12981. - 12981. Within 30 days after disallowing any claim for refund...

Section 12982. - 12982. If the claim for refund or credit is presented...

Section 12983. - 12983. (a) Interest shall be allowed upon the amount of...

Section 12983.1. - 12983.1. Interest shall be allowed upon the amount of any...

Section 12983.5. - 12983.5. If any overpayment of taxes imposed by this part...

Section 12984. - 12984. (a) If the board determines that any overpayment has...

CHAPTER 8 - Taxpayers Suits

Section 13101. - 13101. No injunction or writ of mandate or other legal...

Section 13102. - 13102. No suit or proceeding shall be maintained in any...

Section 13103. - 13103. Within 90 days after the mailing of the notice...

Section 13104. - 13104. If the board fails to mail notice of its...

Section 13105. - 13105. Failure to bring a suit or an action within...

Section 13106. - 13106. If judgment is rendered for the plaintiff, the amount...

Section 13107. - 13107. In any judgment, interest shall be allowed, subject to...

Section 13108. - 13108. (a) A judgment shall not be rendered in favor...

CHAPTER 9 - Disposition of Proceeds

Section 13151. - 13151. All taxes, interest, and penalties collected under this part...

Section 13152. - 13152. The money in the Insurance Tax Fund shall, upon...

Section 13153. - 13153. On or before April 1, the State Compensation Insurance...

CHAPTER 10 - Administration

Section 13170. - 13170. The board, the Insurance Commissioner, and the Controller may...