Lumbermen's Indemnity Exchange v. State

Citations

• 113 Wash. 82
• 193 P. 217
• 1920 Wash. LEXIS 803

Syllabus

<p>Taxation (70-1) — Levy and Assessment — Insurance Companies • — Premium Tax — Reserve—“Bonds oe State”. United States Liberty Loan bonds are not “bonds of this state” within the meaning of Rem. Code, § 6059-26, requiring of insurance companies a cash reserve fund in a certain amount in certain specified securities.</p> <p>Same (70-1). Where an insurance company has available cash, or its equivalent, in a larger amount that the cash reserve which it claims was necessary for the proper conduct of its business, it cannot claim that Liberty bonds bought and held by the company are necessarily a part of its required cash reserve governing the rate of taxation of its premium under Rem. Code, § 6059-26.</p> <p>■Same (70-1) — Cash Reserve — “Investment”. While a purchase of Liberty bonds by an insurance company as an asset “available for investment” depends to a certain extent upon the intent of the company, under the accepted definitions of “investment” the purchase must have been made with the idea of obtaining a profit, and if the • contrary appears, the same may have been used as a necessary portion of its cash reserve, under Rem. Code, § 6059-26.</p>