CHAPTER 207

An Act to amend and reenact § 58-486 of the Code of Virginia, relating
to license tax on insurance companies. rH 806]

Approved March 11, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 58-486 of the Code of Virginia be amended and reenacted
so as to read as follows:

§ 58-486. License tax on insurance companies generally; direct
gross premium income defined.—Every insurance company as defined in
§ 38.1-1 which issues policies or contracts for any kind of insurance
classified and defined in §§ 38.1-3 to 38.1-24 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 com-
pensation insurance on which a premium tax is imposed under the pro-
visions of § 65-120, nor upon consideration for contracts for annuities as
defined in § 38.1-4.

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 busi-
ness in this State during each year ending the thirty-first day of Decem-
ber, excluding premiums received for reinsurance assumed from licensed
insurance companies, without any deduction for dividends paid or deduc-
tion 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,
ape or returns made to policyholders otherwise than for losses may

e deducted.