Every life insurance company, as defined by section one hundred and eighteen of chapter one hundred and seventy-five, authorized to transact business in the commonwealth shall annually pay an excise
of two per cent upon all new and renewal premiums received during the preceding calendar
year for all policies allocable to this commonwealth, as hereinafter provided. In the case of a foreign life insurance company, the policy shall be deemed to be
allocable to this commonwealth if the insured is a resident of the commonwealth at
the time of payment of the premium therefor. In the case of a domestic life insurance company, the policy shall be deemed to
be allocable to this commonwealth unless the insured at the time of payment of the
premium therefor is a resident of a state or country to which such company actually
pays an insurance excise.
The word “premiums” as used in this section shall include all amounts received as consideration for
life insurance policies without deduction for amounts paid to other companies for
reinsurance and shall include dividends applied to purchase additional insurance or
to shorten the premium paying period. In determining the amount of the excise payable hereunder there shall be deducted,
to the extent that they are properly allocable to premiums taxable hereunder, (a)
all premiums returned to policyholders during said preceding calendar year but not
including cash surrender values, and (b) dividends which during said year have been
paid or credited to policyholders or applied to purchase additional insurance or to
shorten the premium paying period.
All premiums received by any life insurance company for contingencies of any character
insured against by such company under authority of clause sixth of section forty-seven of chapter one hundred and seventy-five shall be excluded, except as hereinafter provided, from taxation under this section
and shall be taxable under sections twenty-two and twenty-three of this chapter. All premiums received by any such company for provisions for total and permanent
disability or accidental death benefit incorporated in policies or contracts under
section twenty-four of said chapter one hundred and seventy-five or any supplemental
policies issued under said section twenty-four shall be taxable under this section.
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