2005 California Revenue and Taxation Code Sections 12231-12232 Article 3. Basis of Tax for Title Insurers

12231.  In the case of an insurer transacting title insurance in
this State, the basis of the tax is, in respect to each year, all
income upon business done in this State, except:
   (a) Interest and dividends.
   (b) Rents from real property.
   (c) Profits from the sale or other disposition of investments.
   (d) Income from investments.
12232.  "Investments," as used in Section 12231, includes property
acquired by an insurer in the settlement or adjustment of claims
against it but excludes investments in title plants and title
records.  Income derived directly or indirectly from the use of title
plants and title records is included in the basis of the tax.