Cal. Revenue and Taxation Code - RTC § 12071. Section 12071.
The definitions contained in this article apply with respect to ocean marine insurance.
ARTICLE 1. Definitions [12071. - 12078.]
Cal. Revenue and Taxation Code - RTC 1.
in effectCal. Revenue and Taxation Code - RTC § 12072. Section 12072.
“Current calendar year” means the calendar year for which underwriting profit is computed pursuant to Section 12073.
Cal. Revenue and Taxation Code - RTC § 12073. Section 12073.
“Underwriting profit,” as respects any one calendar year, means the amount arrived at by deducting from the net earned premiums of that calendar year on ocean marine insurance contracts written within the United States:
(a)
Losses incurred.
(b)
Expenses incurred.
In arriving at “underwriting profit” there shall not be deducted as expenses incurred an amount exceeding 40 per cent of the gross premiums on ocean marine insurance contracts written during the current calendar year.
Cal. Revenue and Taxation Code - RTC § 12074. Section 12074.
“Net earned premiums” means the amount arrived at by:
(a)
Deducting all return premiums, premiums on policies not taken, and premiums paid for reinsurance, from
(b)
Gross premiums on ocean marine insurance contracts written during the current calendar year, to which remainder is added
(c)
Unearned premiums on outstanding ocean marine business at the end of the preceding calendar year, and from which sum is deducted
(d)
Unearned premiums on outstanding ocean marine business at the end of the current calendar year.
Cal. Revenue and Taxation Code - RTC § 12075. Section 12075.
“Losses incurred” means gross losses incurred during the current calendar year under ocean marine contracts written within the United States, less reinsurance claims collected or collectible and salvages or recoveries collectible from any source applicable to the losses.
Cal. Revenue and Taxation Code - RTC § 12076. Section 12076.
“Expenses incurred” includes specific and general expenses incurred in the current calendar year on ocean marine contracts written within the United States.
Cal. Revenue and Taxation Code - RTC § 12077. Section 12077.
“Specific expenses” means expenses incurred directly and specifically in connection with earned ocean marine premiums, including all commissions, agency expenses, taxes, licenses, fees, and loss-adjustment expenses, less recoveries or reimbursements on account of or in connection with the commissions or other expenses collected or collectible because of reinsurance or from any other source.
Cal. Revenue and Taxation Code - RTC § 12078. Section 12078.
“General expenses” means the portion of expenses not chargeable specifically to a particular class of insurance which is allocated to earned ocean marine premiums, consisting of that proportion of general or overhead expenses, including salaries of officers and employees, printing and stationery, and taxes of this State and of the United States, which the net premiums of ocean marine insurance written by the insurer bear to the total net premiums from all classes of insurance written by it during the current calendar year.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026