### Question
How does the law define net premiums?


### Answer
Under *26 U.S.C. § 834*, **net premiums** is defined as:

> gross premiums (including deposits and assessments) written or received on insurance contracts during the taxable year less return premiums and premiums paid or incurred for reinsurance

#### Citation:
  - *26 U.S.C. § 834*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART II-OTHER INSURANCE COMPANIES**

