California Revenue & Taxation Code
Cal. Rev. & Tax. Code § 12074
Official textleginfo.legislature.ca.gov
“Net earned premiums” means the amount arrived at by:
# (a)
Deducting all return premiums, premiums on policies not taken, and premiums paid for reinsurance, from
# (b)
Gross premiums on ocean marine insurance contracts written during the current calendar year, to which remainder is added
# (c)
Unearned premiums on outstanding ocean marine business at the end of the preceding calendar year, and from which sum is deducted
# (d)
Unearned premiums on outstanding ocean marine business at the end of the current calendar year.
Source: view the official text