Metropolitan Life Insurance v. State Board of Equalization

Opinion

MOSK, J.

The California Constitution imposes a franchise tax “on each insurer doing business in this state,” measured by the amount of “gross premiums” which the insurer receives in a particular year. (Cal. Const., art. XIII, § 28 (formerly § 14⅘); see also Rev. & Tax. Code, §§ 12201, 12221.) We must decide whether certain amounts, though never formally paid to Metropolitan Life Insurance Company (Metropolitan), nevertheless are to be included within the gross premiums measure of the tax imposed on its business done in California.

Metropolitan writes coverage for employee group medical…