CODE OF VIRGINIA

LEVY OF LICENSE TAX (§ 58.1-2501)

A. For the privilege of doing business in the Commonwealth, there is hereby
levied on every insurance company defined in § 38.2-100 which issues policies
or contracts for any kind of insurance classified and defined in §§ 38.2-102
through 38.2-134 and on every corporation which issues subscription contracts
for any kind of plan classified and defined in §§ 38.2-4201 and 38.2-4501, an
annual license tax as follows:

   1.  For any kind of insurance classified and defined in §§ 38.2-109 through
   38.2-134 or Chapters 44 (§ 38.2-4400 et seq.) and 61 (§ 38.2-6100 et seq.)
   of Title 38.2, except workers’ compensation insurance on which a premium
   tax is imposed under the provisions of § 65.2-1000, such company shall pay a
   tax of two and three-fourths percent of its subscriber fee income or direct
   gross premium income on such insurance for each taxable year through 1988. For
   taxable year 1989 and each taxable year thereafter, such company shall pay a
   tax of two and one-fourth percent of its subscriber fee income or direct gross
   premium income on such insurance;

   2.  For policies or contracts for life insurance as defined in § 38.2-102,
   such company shall pay a tax of two and one-fourth percent of its direct gross
   premium income on such insurance. However, with respect to premiums paid for
   additional benefits in the event of death, dismemberment or loss of sight by
   accident or accidental means, or to provide a special surrender value, special
   benefit or an annuity in the event of total and permanent disability, the rate
   of tax shall be two and three-fourths percent for each taxable year beginning
   January 1, 1987, through December 31, 1988, and two and one-fourth percent for
   taxable year beginning January 1, 1989, and each taxable year thereafter;

   3.  For policies or contracts providing industrial sick benefit insurance as
   defined in § 38.2-3544, such company shall pay a tax of one percent of its
   direct gross premium income on such insurance. No company, however, doing
   business on the legal reserve plan, shall be required to pay any licenses,
   fees or other taxes in excess of those required by this section on such part
   of its business as is industrial sick benefit insurance as defined in §
   38.2-3544; but any such company doing business on the legal reserve plan shall
   pay on all industrial sick benefit policies or contracts on which the sick
   benefit portion has been cancelled as provided in § 38.2-3546, or which
   provide a greater death benefit than $ 250 or a greater weekly indemnity than
   $ 10, and on all other life, accident and sickness insurance, the same license
   or other taxes as are required by this section; and

   4.  For subscription contracts for any kind of plan classified and defined in
   § 38.2-4201 or § 38.2-4501, such corporation shall pay a tax of two and
   one-fourth percent of its direct gross subscriber fee income derived from
   subscription contracts issued to primary small groups as defined in §
   38.2-3431 and three-fourths of one percent of its direct gross subscriber fee
   income derived from other subscription contracts for taxable year 1997. For
   each of taxable years 1998 through 2013, such corporation shall pay a tax of
   three-fourths of one percent of its direct gross subscriber fee income derived
   from subscription contracts issued to individuals and from open enrollment
   contracts as defined in § 38.2-4216.1, and two and one-fourth percent of its
   direct gross subscriber fee income derived from other subscription contracts.
   For each taxable year thereafter, such corporation shall pay a tax of two and
   one-fourth percent of its direct gross subscriber fee income derived from all
   subscription contracts. The declaration of estimated tax pursuant to this
   subsection shall commence on or before April 15, 1988.

B. Notwithstanding any other provisions of this section, any domestic insurance
company doing business solely in the Commonwealth which is purely mutual, has no
capital stock and is not designed to accumulate profits for the benefit of or
pay dividends to its members, and any domestic insurance company doing business
solely in the Commonwealth, with a capital stock not exceeding $ 25,000 and
which pays losses with assessments against its policyholders or members, shall
pay an annual license tax of one percent of its direct gross premium income.

HISTORY: Code 1950, §§ 58-490, 58-491, 58-492, 58-501; 1952, c. 190; 1968, c.
13; 1978, c. 658; 1984, c. 675; 1987, cc. 565, 655; 1997, cc. 807, 913; 2004, c.
668; 2013, cc. 136, 210.