May 14, 1968
Circular Letter No. 3 (1968)
TO ALL INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN NEW YORK
Re: Apportionment of Premiums
Both the New York State Insurance Law and the New York State Tax Law provide that for purposes of taxation all direct 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 of any other state or states. In the past, when reporting such premiums in the Annual Statement the provisions of this "deemer" clause have been applied by the companies in several different ways. In order to obtain uniformity the following procedure should be used to apportion premiums at Schedule T.
1. Direct premiums on risks resident or property located in New York State should be reported as New York premiums both at Schedule T and on the New York Business Page.
2. Direct premiums on risks resident or property located outside of NEW YORK STATE should be reported as premiums of the state in which the risk is actually located on Schedule T.
This procedure will affect only the apportionment of premiums on Schedule T of the Annual Statement and will not change previous practice in regard to computing the taxable base.
Very truly yours,
Superintendent of Insurance