CHAPTER 190

An Act to amend and reenact §§ 58-486 to 58-502, inclusive, of the Code
of Virginia, in relation to license taxes on insurance and insurance
companies; and to repeal § 58-496 of the Code of Virginia, relating
to the same matters.

(H 6]

Approved March 5, 1952

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-486 to 58-502, inclusive, of the Code of Virginia be
amended and reenacted as follows:

§ 58-486. License tax on insurance companies generally; direct
gross premium income defined.—Every * insurance company as defined in
§ 88-1 which issues policies or contracts for any kind of insurance classi-
fied and defined in §§ 38-8 to 88-24 shall pay an annual license tax, based
upon the direct gross premium income as hereinafter defined derived from
such business in this State during each year ending the thirty-first day of
December prior to the year for which such license tax is to be paid, for
the privilege of doing business in this State; provided that no license tax
shall be paid upon premiums derived from workmen’s compensation
insurance on which a premium tax is imposed under the provisions of
65-120, nor upon consideration for contracts for annuities as defined in

88-4.

As used in this chapter the words “direct gross premium income”
shall mean the gross amount of all premiums, assessments, dues and fees
collected, received or derived, or obligations taken therefor, from business
in this State during each year ending the thirty-first day of December,
excluding premiums received for reinsurance assumed, without any deduc-
tion for dividends paid or deduction on any other account except for
premiums returned on cancelled policies, or on account of reduction in
rates or reduction in the amount insured. In computing direct gross
premium income on insurance issued by mutual insurance companies
other than life insurance companies, refunds or returns made to policy-
holders otherwise than for losses may be deducted.

§ 58-487. License year; * initial licenses.—The license year shall ex-
pire on the thirtieth day of April of each year. No license shall be issued
for less than a year except to a * company * when it first commences
business in this State, in which case the initial license shall be issued for
that part of the year from the date of the issuance of the license to the
thirtieth day of April following.

§ 58-488. Amount of license tax for first year.—The tax for such
first license shall be two hundred dollars if the license period be one year,
* but if the period be for a partial year the tax shall be that proportion
of * two hundred dollars * that the partial year bears to a whole year.

§ 58-489. When tax payable.—The license tax * shall be paid *
'o the State Treasurer on or before the ‘first day of April of each year.

§ 58-490. Amount of license tax for * insurance other than life in-
surance and annuities.—For every year after the first year every such *
company which issues policies or contracts for * any kind of insurance
classified and defined in §§ 38-5 to 88-24, except workmen’s compensation
msurance on which a premium tax is imposed under the provisions of
: 65-120, shall pay * a license tax of two and * three-fourths per centum
of direct gross * premium income * derived * from such business in this
State during the preceding year ending the thirty-first day of December.*

§ 58-491. Amount of such tax for life insurance*.—For every year
ifter the first year every such * company * which issues policies or con-
tracts for life insurance as defined in § 38-8 shall pay * a license tax of
two and one-fourth per centum of direct * gross * premium income *
derived * from life insurance business in this State during * the preced-
ing year ending the thirty-first day of December ; provided, however, that
with respect to premiums paid for additional benefits in the event of
death, dismemberment or loss of sight by accident or accidental means,
or to provide a special surrender value, special benefit or an annuity in
the event of total and permanent disability, the rate of tax shall be two
and three-fourths per centum.

§ 58-492. Amount * of such tax for insurance transacted by certain
mutual * companies.—Notwithstanding other provisions of this chapter,
any domestic insurance company doing business solely in this State which
is purely mutual, has no capital stock and is not designed to accumulate
profits for the benefit of or pay dividends to its members *, and any
domestic insurance company * doing business solely in this State, with
a capital stock not exceeding twenty-five thousand dollars and which pays
losses from assessments against its policyholders or members, shall pay
a license tax for every year after the first year of one per centum * of
direct gross premium income derived * from business in this State during
the preceding year ending the thirty-first day of December.*

§ 58-493. * Chapter not applicable to fraternal benefit societtes.—
Nothing in this chapter shall be construed to * require any tax, other than
taxes imposed upon property and the license tax wmposed by § 38-588,
upon fraternal benefit societies as defined in § 38-569.

§ 58-494. Certain assessment mutual fire insurance companies
exempt * from license tax.—* No license tax for transacting insurance
shall be imposed upon any mutual assessment fire insurance company as
defined in § 88-659 which confines its business to not more than four con-
tiguous counties in this State, or * which confines its business to more
than four contiguous counties * in this State if such counties together
have a population not in excess of one hundred thousand. *

§ 58-495. Certain other provisions not affected by chapter.—
Nothing in this chapter shall be construed to affect or apply to the law
providing that the expenses of maintaining the * division or bureau of
the State Corporation Commission which administers the insurance laws
of the State shall be paid by the insurance companies doing business in
this State, and the law providing that the expense of keeping the bonds
deposited with the State Treasurer shall be paid by the insurance com-
pany depositing * such bonds.

§ 58-497. Reports to State Corporation Commission.—Every such
* company * shall, on or before the first day of March of each year, report
under oath to the State Corporation Commission, upon forms to be fur-
nished by * and in such detail as may be prescribed by the Commission,
the direct gross premium income derived * from its business in this State
during the preceding year ending the thirty-first day of December. * The
Commission shall examine such report and determine the amount of the
license tax to be paid by the company, and shall certify the amount of such
tax to the Comptroller.

§ 58-498. Penalties for failure to make report or pay tax; revoca-
tion of license; recovery by suit.—Every such * company * which fails to
make the report * required by § 58-497 shall be fined fifty dollars for
each day’s failure to make * the report, the fine to be imposed in the
discretion of the Circuit Court of the city of Richmond upon motion of
the Attorney General * made at the suggestion of the State Corporation
Commission after ten days’ notice to the company of the time of such
motion.

The State Corporation Commission shall, upon notification by the
Comptroller that the license tax * has not been paid, revoke the license *
of such company to transact insurance in this State.
The Comptroller shall, upon the failure of any such * company * to
* pay the license tax * within the time required by law, add a penalty of
ten per centum of the amount of * such tax * and proceed to recover the *
tax and penalty by suit in the Circuit Court of the city of Richmond, *
or by appropriate proceedings brought to subject any bonds or other
securities deposited by such company with the Treasurer.

§ 58-499. Real estate and tangible personal property of insurance
companies to be taxed as other such property.—The real estate and
tangible personal property, situated or located in this State, of every *
such company and every fraternal benefit society transacting insurance
in this State shall be listed and assessed on the land and property books
of the commissioner of the revenue in the same manner as other real
estate and tangible personal property are assessed, and shall be taxed at
the same rates as other like property is taxed.

§ 58-500. * Taxes herein imposed to be in leu of all other taxes
except agent’s * license tax.—The license tax on gross premium income as
provided in * this chapter and the tax on real estate and tangible personal
property * provided for in § 58-499 to be paid by * insurance companies
shall be in lieu of all * fees, licenses, taxes and levies whatsoever, * State,
county, or municipal, * which as to licenses shall be construed to include
their agents, except that the * license fee * required * of each such agent
shall be paid * to the State Corporation Commission.*

§ 58-501. License tax on companies transacting industrial sick
benefit insurance.—Every * such company which issues policies or con-
tracts of industrial sick benefit insurance as defined in § 38-488 shall pay
for the privilege of * transacting such insurance in this State a license
tax of one per centum * of direct gross premium income derived from
such business in this State during * the preceding year ending the thirty-
first day of December. * No * such company, however, doing business on
the legal reserve plan, shall be required to pay any licenses, fees or other
taxes in excess of those required by this section on such part of its business
as * 1s industrial sick benefit insurance as defined in * § 88-488; * but any
such company doing business on the legal reserve plan shall pay on all
industrial sick benefit policies or contracts on which the sick benefit por-
tion has been cancelled as provided in § 8-485, or which provide a greater
death benefit than two hundred fifty dollars or a greater weekly indemnity
than ten dollars, and on all other life, * accident and sickness insurance,
the same license or other taxes as are required * under §§ 58-490 and
58-491.

§ 58-502. * How gross premium income of reciprocal * insurers com-
puted.—* Notwithstanding any other provisions of this chapter to the
contrary, the direct gross premium income of any reciprocal insurer,
computed for license tax purposes, shall be the gross premium or deposit
income collected, received or derived from and credited to the accounts of
subscribers from business in this State during the preceding year ending
the thirty-first day of December *, decreased by all returns for cancella-
‘ion and all amounts returned to subscribers or credited to their accounts
IS Savings.

2. § 58-496 of the Code of Virginia is repealed.