CHAPTER 264

AN ACT to amend and reenact § 58-486, as amended, Code of Virginia, relating to the license tax on insurance companies and defining gross
premium income. .
[H 374)

Approved March 31, 1966

Be it enacted by the General Assembly of Virginia:

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

§ 58-486. Every insurance company as defined in § 88.1-1 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 compensation insurance on which
@ premium tax is imposed under the provisions 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 col-
lected, 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 from licensed in-
surance companies, without any deduction 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,
and excluding premiums received or derived to provide insurance of the
kinds classified in §§ 88.1-8 and 88.1-5 issued on a group basis by an tn-
surance company insuring its employees, agents and representatives. In
computing direct gross premium income on insurance issued by mutual
insurance companies other than life insurance companies, refunds or re-
turns made to policyholders otherwise than for losses may be deducted.