Cal. Code Regs. tit. 10, § 2324 – Reporting and Allocating Risks in Federal Areas.

(a) Every insurance company or association doing business in this State is hereby required to include in its premium tax return to this department for the years 1941, et seq., all premiums received by it during each of said years upon insurance business done in all federal areas located within the exterior boundaries of the State of California.
(b) Where premiums for insurance upon the lives or health of members of the armed forces or their families are collected directly from the fiscal officer of either branch of the service under salary allotment authorizations, such premiums are to be allocated to California:
1. (1) In cases where the insurance was in force prior to the entry into the armed service and the last premium previous to such entry was allocable to California under the normal and usual rules for allocation of premiums.
2. (2) In cases of all insurance originating in federal areas located within the exterior boundaries of the State of California when, because of the peculiar status of military personnel with respect to established residence, the normal rules for allocation of premiums are impossible or impractical of application, for so long as such conditions continue to exist.
(c) The fact that premiums are collected under salary allotment authorizations does not of itself render them exempt from such tax to which they are otherwise subject under the statutes quoted, as herein construed and interpreted. (Pol. Code Sections 34, 3666a, 54 U.S. Stats., p. 1059, 4 U. S. C. A. 13a)