Texas Register, Volume 38, Number 4, Pages 331-442, January 25, 2013 Page: 380
331-442 p. ; 28 cm.View a full description of this periodical.
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insurance company includes .00839 of 1.0 percent of the gross
premium receipts of the company for the year 2012, upon taking
into consideration the annual premium receipts that are not at-
tributable to 90 percent of pension plan contracts as defined in
Section 818(a) of the Internal Revenue Code of 1986 (26 U.S.C.
Section 818(a)).
Section 7.1001(c)(3) provides that, except as provided by para-
graph (4), if a company was a domestic insurance company for
less than a full year during calendar year 2012, the overhead as-
sessment for the company is the overhead assessment required
under paragraph (2)(A) and (B) of the subsection divided by 366
and multiplied by the number of days the company was a do-
mestic insurance company during calendar year 2012.
Section 7.1001(c)(4) provides that if the overhead assessment
required under 7.1001(c)(2)(A) and (B) or paragraph (3) pro-
duces an overhead assessment of less than a $25 total, a do-
mestic insurance company shall pay a minimum overhead as-
sessment of $25.
Section 7.1001(c)(5) provides that the department will base the
overhead assessments on the assets and premium receipts re-
ported in a domestic insurance company's annual statement.
Section 7.1001(c)(6) provides that for the purpose of applying
paragraph (2)(B) of the subsection, the term "gross premium re-
ceipts" does not include insurance premiums for insurance con-
tracted for by a state or federal government entity to provide wel-
fare benefits to designated welfare recipients or contracted for
in accordance with or in furtherance of the Human Resources
Code, Title 2, or the federal Social Security Act (42 U.S.C. Sec-
tion 301 et seq.)
Section 7.1001(d) establishes the examination expenses ap-
plicable to a workers' compensation self-insurance group. The
subsection requires a workers' compensation self-insurance
group to pay the actual salaries and expenses of the examiners
allocable to an examination of the company, it describes how
to calculate the part of an examiner's salary included in the
examination fee, and it provides that expenses the department
assesses are those actually incurred by the examiner to the
extent permitted by law.
Section 7.1001(e) requires a domestic insurance company to
pay the overhead assessment required under 7.1001(c) to the
Texas Department of Insurance not later than 30 days from the
invoice date.
The department did not receive any comments on the published
proposal.
The amendments are adopted under the Insurance Code
201.001(a)(1), (b), and (c); 401.151; 401.152; 401.155,
401.156; 843.156(h); and 36.001; and the Labor Code
407A.252(b).
The Insurance Code 201.001(a)(1) states that the Texas De-
partment of Insurance operating account is an account in the
general revenue fund, and that the account includes taxes and
fees received by the commissioner or comptroller that are re-
quired by the Insurance Code to be deposited to the credit of
the account. Section 201.001(b) states that the commissioner
shall administer money in the Texas Department of Insurance
operating account and may spend money from the account in
accordance with state law, rules adopted by the commissioner,
and the General Appropriations Act. Section 201.001(c) states
that money deposited to the credit of the Texas Department ofInsurance operating account may be used for any purpose for
which money in the account is authorized to be used by law.
The Insurance Code 401.151 provides that a domestic insurer
examined by the department or under the department's author-
ity must pay the expenses of the examination in an amount the
commissioner certifies as just and reasonable.
The Insurance Code 401.151 also provides that the department
must collect an assessment at the time of the examination to
cover all expenses attributable directly to that examination, in-
cluding the salaries and expenses of department employees and
expenses described by the Insurance Code 803.007. Section
401.151 also requires that the department impose an annual as-
sessment on domestic insurers in an amount sufficient to meet
all other expenses and disbursements necessary to comply with
the laws of Texas relating to the examination of insurers. Addi-
tionally, Section 401.151 states that in determining the amount
of assessment, the department will consider the insurer's annual
premium receipts or admitted assets, or both, that are not attrib-
utable to 90 percent of pension plan contracts as defined by Sec-
tion 818(a), Internal Revenue Code of 1986; or the total amount
of the insurer's insurance in force.
The Insurance Code 401.152 provides that an insurer not orga-
nized under the laws of Texas must reimburse the department for
the salary and expenses of each examiner participating in an ex-
amination of the insurer and for other department expenses that
are properly allocable to the department's participation in the ex-
amination. Section 401.152 also requires an insurer to pay the
expenses under the section directly to the department on presen-
tation of an itemized written statement from the commissioner.
Additionally, 401.152 provides that the commissioner must de-
termine the salary of an examiner participating in an examination
of an insurer's books or records located in another state based
on the salary rate recommended by the National Association of
Insurance Commissioners or the examiner's regular salary rate.
The Insurance Code 401.155 requires the department to im-
pose additional assessments against insurers on a pro rata basis
as necessary to cover all expenses and disbursements required
by law and to comply with the Insurance Code Chapter 401, Sub-
chapter D, and 401.103, 401.104, 401.105, and 401.106.
The Insurance Code 401.156 requires the department to de-
posit any assessments or fees collected under the Insurance
Code Chapter 401, Subchapter D, relating to the examination
of insurers and other regulated entities by the financial examina-
tions division or actuarial division, as those terms are defined by
the Insurance Code 401.251, to the credit of an account with
the Texas Treasury Safekeeping Trust Company to be used ex-
clusively to pay examination costs, as defined by the Insurance
Code 401.251. Additionally, 401.156 provides that revenue
not related to the examination of insurers or other regulated en-
tities by the financial examinations division or actuarial division
be deposited to the credit of the Texas Department of Insurance
operating account.
The Insurance Code 843.156(h) provides that the Insurance
Code Chapter 401, Subchapter D, applies to an HMO, except
to the extent that the commissioner determines that the nature
of the examination of an HMO renders the applicability of those
provisions clearly inappropriate.
The Labor Code 407A.252(b) provides that the commissioner
of insurance may recover the expenses of an examination of
a workers' compensation self-insurance group under the Insur-
ance Code Article 1.16, which was recodified as the Insurance38 TexReg 380 January 25, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 4, Pages 331-442, January 25, 2013, periodical, January 25, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth290819/m1/48/?rotate=270: accessed May 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.