American Fire and Casualty Company, Plaintiff-Respondent v. New Jersey Division of Taxation, Defendant-Appellant…

Summary

The Supreme Court of New Jersey affirmed the Appellate Division’s judgment, holding that the retaliatory tax must be calculated by subtracting the statutory New Jersey rate from the foreign insurer’s home‑state rate, thereby preserving the benefit of the premium‑tax cap. The Court rejected the Director’s method that effectively nullified the cap and noted that the dissent argued for deference to the agency’s interpretation.