New York Laws
Article 33 - Franchise Taxes on Insurance Corporations
1502-B - Computation of Tax for Captive Insurance Companies.

(b) In determining the amount of gross direct premiums or assumed
reinsurance premiums taxable in this state, all premiums written,
procured or received in this state shall be deemed written on property
or risks located or resident in this state except such premiums as are
properly allocated or apportioned and reported as taxable premiums or
which have been used as a measure of a tax of any other state or states.
(c) The definition of the term "premium" set forth in subdivision (c)
of section fifteen hundred ten of this article shall apply to this
section. In addition, "gross direct premium" shall be determined as
provided in such subdivision (c). Provided, however, that the term
"premium" shall also include any amount received by a captive insurance
company as consideration for insurance provided, in the case of a pure
captive insurance company, to its parents and affiliated companies, and,
in the case of a group captive insurance company, to the industrial
insureds that comprise the industrial insured group. The terms "pure
captive insurance company", "group captive insurance company",
"industrial insureds" and "industrial insured group" shall have the same
meanings as such terms have in section seven thousand two of the
insurance law. The reporting of premiums for the purpose of the tax
imposed by this section shall be on a written basis or on a paid-for
basis consistent with the basis required by the annual statement filed
with the superintendent of financial services pursuant to section seven
thousand six of the insurance law.
(d) The superintendent of financial services shall have the same
power, duty and responsibility to examine the returns of captive
insurance companies as such superintendent has with respect to insurance
corporations as set forth in subdivision (e) of section fifteen hundred
ten of this article.
(e) The credits set forth in section fifteen hundred eleven of this
article shall not be allowed against the tax imposed by this section.