gistfile1.txt

/**
 * Implements hook_install().
 */
function tsjf_update_7118() {
  // Populates 'Vocabulary name' vocabulary with taxonomy terms.
  $vocabulary = taxonomy_vocabulary_machine_name_load('tsjf_filter');
  $terms = array();

  $terms[] = t('Term 1');
  $terms[] = t('Term 2');
  $terms[] = t('Term 3');

  foreach($terms as $name) {
    $term = new stdClass();
    $term->vid = $vocabulary->vid;
    $term->name = $name;
    taxonomy_term_save($term);
  }
}