N.Y. Tax Law § 1500: General definitions

Section 1500. General definitions. The following words, as used in

this article, shall have the meanings hereinafter set forth.

(a) The term "insurance corporation" includes a corporation,

association, joint stock company or association, person, society,

aggregation or partnership, by whatever name known, doing an insurance

business, and, notwithstanding the provisions of section fifteen hundred

twelve of this article, shall include (1) a risk retention group as

defined in subsection (n) of section five thousand nine hundred two of

the insurance law, (2) the state insurance fund and (3) a corporation,

association, joint stock company or association, person, society,

aggregation or partnership doing an insurance business as a member of

the New York insurance exchange described in section six thousand two

hundred one of the insurance law. The definition of the "state insurance

fund" contained in this subdivision shall be limited in its effect to

the provisions of this article and the related provisions of this

chapter and shall have no force and effect other than with respect to

such provisions. The term "insurance corporation" shall also include a

captive insurance company doing a captive insurance business, as defined

in subsections (c) and (b), respectively, of section seven thousand two

of the insurance law; provided, however, "insurance corporation" shall

not include the metropolitan transportation authority, the power

authority of New York or any statutory subsidiary thereof, the New York

convention center operating corporation or any statutory subsidiary

thereof, or a public benefit corporation or not-for-profit corporation

formed by a city with a population of one million or more pursuant to

subsection (a) of section seven thousand five of the insurance law, each

of which is expressly exempt from the payment of fees, taxes or

assessments, whether state or local; and provided further "insurance

corporation" does not include any combinable captive insurance company.

The term "insurance corporation" shall also include an unauthorized

insurer operating from an office within the state, pursuant to paragraph

five of subsection (b) of section one thousand one hundred one and

subsection (i) of section two thousand one hundred seventeen of the

insurance law. The term "insurance corporation" also includes a health

maintenance organization required to obtain a certificate of authority

under article forty-four of the public health law.

(b) The term "domestic insurance corporation" means an insurance

corporation incorporated or organized under the laws of this state.

Provided, however, the savings banks life insurance fund and savings and

insurance banks which are authorized to transact the business authorized

by the provisions of article six-a of the banking law shall be subject

to taxation as domestic insurance corporations on such insurance

business under this article.

(c) The term "foreign insurance corporation" means an insurance

corporation incorporated or organized under the laws of any other state

of the United States, the District of Columbia or the Commonwealth of

Puerto Rico.

(d) The term "alien insurance corporation" means an insurance

corporation incorporated or organized under the laws of any other

foreign nation, or of any province or territory not included under the

definition of "foreign insurance corporation."

(e) The term "taxpayer" means any insurance corporation subject to the

tax imposed under section fifteen hundred one, fifteen hundred two-a, or

fifteen hundred ten or any captive insurance company subject to the tax

imposed under section fifteen hundred two-b of this article.

(f) The term "taxable year" means the taxpayer's taxable year for

federal income tax purposes, or the part thereof during which the

taxpayer is subject to the tax under this article.

(g) The term "subsidiary" means a corporation of which over fifty

percent of the number of shares of stock entitling the holders thereof

to vote for the election of directors or trustees is owned by the

taxpayer.

(h) The term "subsidiary capital" means investments in the stock of

subsidiaries and any indebtedness from subsidiaries, exclusive of

accounts receivable acquired in the ordinary course of trade or business

for services rendered or for sales of property held primarily for sale

to customers, whether or not evidenced by a written instrument, on which

interest is not claimed and deducted by the subsidiary for purposes of

taxation under any article of this chapter, provided, however, that in

the discretion of the tax commission, there shall be deducted from

subsidiary capital any liabilities payable by their terms on demand

within one year from the date incurred, other than loans or advances

outstanding for more than one year as of any date during the taxable

year covered by the return, which are attributable to subsidiary

capital.

(i) The term "investment capital" means investments in stocks, bonds

and other securities, corporate and governmental, not held for sale to

customers in the regular course of business, exclusive of subsidiary

capital and stock issued by the taxpayer, provided, however, that in the

discretion of the tax commission, there shall be deducted from

investment capital any liabilities payable by their terms on demand or

within one year from the date incurred, other than loans or advances

outstanding for more than a year as of any date during the year covered

by the return, which are attributable to investment capital, provided,

also, there shall be excluded from investment capital, such investments

which are held to maintain reserves of the taxpayer required under

sections one thousand three hundred three, one thousand three hundred

four and one thousand three hundred five of the insurance law.

(j) The term "business capital" means all assets, other than

subsidiary capital, investment capital and stock issued by the taxpayer,

less liabilities not deducted from subsidiary or investment capital

which are payable by their terms on demand or within one year from the

date incurred, other than loans or advances outstanding for more than a

year as of any date during the year covered by the return, except that

cash on hand and on deposit shall be treated as investment or as

business capital as the taxpayer may elect, provided, however, that

there shall be excluded from business capital such assets which are held

to maintain reserves of the taxpayer required under sections one

thousand three hundred three, one thousand three hundred four and one

thousand three hundred five of the insurance law.

(k) The term "special risk premium" means any premium received on

insurance provided the insurance is exempt from the filing requirements

with respect to rates and policy forms pursuant to article sixty-three

of the insurance law.