N.J. Stat. tit. 54, ch. 16

in effect

N.J. Stat. § 54:16-1 Definition of marine insurances

As used in this chapter "marine insurances" means insurance contracts upon hulls, freights, or disbursements, or upon goods, wares, merchandise and all other personal property and interests therein, in course of exportation from, importation into any country, or transportation coastwise, including transportation by land or water from point of origin to final destination, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit or transportation and while being prepared for, and while awaiting shipment, and during any delays, storage, transshipment or reshipment incident thereto, including war risks and marine builder's risks.

N.J. Stat. § 54:16-2 Imposition of tax

With the exception of license fees, real estate and personal property taxes and taxes under the reciprocal provisions of section 17:32-12 of the title Corporations and Institutions for Finance and Insurance, every insurer organized, admitted or licensed to transact the business of marine insurance in this state shall, with respect to all marine insurances written within this state, be taxed only on that proportion of the total underwriting profit of such insurer from such marine insurances written within the United States, which the gross premiums of the insurer from such insurance written within this state bear to the gross premiums of such insurers from such insurance written within the United States.

N.J. Stat. § 54:16-3 Underwriting profit; how computed

The term "underwriting profit" as used herein shall be computed by deducting from the net earned premiums on the marine insurances written within the United States during the calendar year, a. The losses incurred, and b. Expenses incurred including all taxes, state and federal, in connection with such net earned premiums.

N.J. Stat. § 54:16-4 Net earned premiums; how computed

Net earned premiums on marine insurances written within the United States during the calendar year shall be computed as follows: a. Gross premiums on marine insurances written within the United States during the calendar year, less any and all return premiums, any and all premiums on policies not taken and any and all premiums paid for reinsurance; b. Add unearned premiums on such outstanding marine business at the end of the preceding calendar year; and, c. Deduct unearned premiums on such outstanding marine business at the end of the current calendar year.

N.J. Stat. § 54:16-5 Losses incurred; definition

As used in this chapter "losses incurred" means gross losses incurred during the calendar year under such marine insurances written within the United States, less reinsurance claims collected or collectible and salvages or recoveries collectible from any source applicable to such losses.

N.J. Stat. § 54:16-6 Expenses incurred; how computed

In computing the underwriting profit, expenses incurred shall include: a. Specific expenses incurred on such earned marine premiums, consisting of all commissions, agency expenses, taxes, licenses, fees, loss-adjustment expenses, and all other expenses incurred directly and specifically in connection with such premiums, less recoveries or reimbursements on account of or in connection with such commissions or other expenses collected or collectible because of reinsurance or from any other source; b. General expenses incurred on such earned premiums, consisting of that proportion of general or overhead expenses, such as salaries of officers and employees, printing and stationery, all taxes of this state and of the United States, except as otherwise provided herein, and all other expenses not chargeable specifically to a particular class of insurance, which the net premiums written bear to the total net premiums written by such insurer from all classes of insurance written by it during the current calendar year. In computing the underwriting profit for purposes of taxation pursuant to section 54:16-3 of this title no deduction in respect to expenses incurred shall be made which in aggregate exceeds forty per cent of the gross premiums on such marine insurances.

N.J. Stat. § 54:16-7 Reports by marine insurance companies

Every insurer transacting marine insurance in this state shall file, on or before the first day of April in each year, with the commissioner of banking and insurance, and in the form prescribed by him, a report of all the items pertaining to its insurance business as enumerated and prescribed in sections 54:16-1 to 54:16-6 of this title. To determine the basis of the tax on underwriting profit, every insurer which has been writing such marine insurance in this state for three years shall furnish the commissioner of banking and insurance a statement of all the aforementioned items, in the form prescribed by him, for each of the preceding three calendar years. An insurer which has not been writing such marine insurance for three years shall furnish to the commissioner of banking and insurance a statement of all the aforementioned items for each of the calendar years during which it has written such marine insurance.

N.J. Stat. § 54:16-8 Computation of tax

54:16-8. Computation of tax. If the Commissioner of Insurance finds the report of the insurer to be correct he shall ascertain the tax to be paid by the insurer, in the following manner: a. If the insurer has written marine insurances in this State for three years the Commissioner of Insurance shall: (1) Ascertain the average annual underwriting profit derived by the insurer from such marine insurances written within the United States during the last preceding three calendar years; (2) Ascertain the proportion which the average annual premiums of the insurer from such marine insurances written by it in this State during the last preceding three years bear to the average total of such marine premiums of the insurer during the same three years; (3) Compute an amount of five percent on this proportion of the aforementioned average annual underwriting profit of the insurer from such marine insurances , and compute an additional amount of twenty-five one-hundredths on that proportion which amount shall be dedicated to the Department of Insurance for payment of administrative costs related to its statutory duties; and (4) Charge the amount of tax thus computed to such insurer as a tax upon such marine insurances written by it in this State during the current calendar year. The Commissioner of Insurance shall each year compute the tax, according to the method described in this section, upon the average annual underwriting profit of such insurer from such marine insurances during the preceding three years, including the current calendar year, namely, at the expiration of each current calendar year, the profit or loss on such marine insurances of that year is to be added or deducted, and the profit or loss upon such marine insurances of the first calendar year of the preceding three-year period is to be dropped so that the computation of underwriting profit for purposes of taxation under this section will always be on a three-year average. b. If the insurer has not been writing such marine insurances in this State for three years the Commissioner of Insurance shall, until the insurer has transacted such business in this State for that number of years, compute the tax upon the basis of its annual underwriting profit on such marine insurances written within the United States for the current calendar year, subject, however, to an adjustment in the tax as soon as the Commissioner of Insurance, in accordance with the provisions of this section, is enabled to compute the tax on the aforementioned three-year basis. In the case of mutual companies, the Commissioner of Insurance shall not include in underwriting profit when computing the tax provided by this chapter, the amounts refunded by such companies on account of premiums previously paid by their policyholders. Amended 1990,c.8,s.80.

N.J. Stat. § 54:16-9 Report of commissioner of banking and insurance to tax commissioner

When the commissioner of banking and insurance has computed the tax on an insurer's underwriting profit he shall report to the state tax commissioner all facts necessary to enable the state tax commissioner to ascertain, fix and collect the amount of the tax to be paid by each and every insurer subject thereto under the provisions of this chapter.

N.J. Stat. § 54:16-10 Due date of tax

Each insurer subject to the tax provided by this chapter shall, within fifteen days after receipt of notice from the state tax commissioner of the amount thereof pay the same to the state tax commissioner.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026