State taxation of reinsurance premiums of catastrophic risk transfer companies

(a) Prevention of double taxation A taxing jurisdiction other than the State under the laws of which a catastrophic risk transfer company is created or organized shall not impose a premium tax on any premiums paid to, or received by, such company on a policy of reinsurance. (b) Coordination of rate of premium tax with tax on foreign reinsurers If a State allowed under subsection (a) imposes a premium tax on a catastrophic risk transfer company on premiums on a policy of reinsurance, the amount of such tax shall not exceed the tax which would have been imposed under section 4371 of the Internal Revenue Code of 1986 if such premiums were paid to a foreign insurer or reinsurer. (c) Definitions For purposes of this section— (1) Catastrophic risk transfer company The term catastrophic risk transfer company has the meaning given such term by section 860M of the Internal Revenue Code of 1986. (2) Policy of reinsurance The term policy of reinsurance has the meaning given such term by section 4372(f) of such Code. (3) Taxing jurisdiction The term taxing jurisdiction means any of the several States, the District of Columbia, or any territory or possession of the United States, any municipality, city, county, or any other political subdivision within the territorial limits of the United States with the authority to impose a premium tax on a policy of reinsurance.