Part 1.
TEXAS DEPARTMENT OF INSURANCE
Chapter 1.
GENERAL ADMINISTRATION
Subchapter C. MAINTENANCE TAXES AND FEES
28 TAC §1.414
The Commissioner of Insurance adopts an amendment to §1.414
concerning assessment of maintenance taxes and fees for payment in the year
2002. The amended section is adopted without changes to the proposed text
as published in the November 16, 2001, issue of the
Texas Register
(26 TexReg 9360) and will not be republished.
The amendment is necessary to adjust the rates of assessment for maintenance
taxes and fees for 2002 which will provide the revenue necessary to fund appropriations
made by the Legislature to fund regulation of the insurance industry in Texas
by the department.
The department uses the rule making process to give notice to the public
and the opportunity to comment on the proposed rates of assessment for maintenance
taxes. Section 1.414 sets rates of assessment and applies those rates to the
gross premium receipts for the calendar year 2001, or some other basis designated
by statute, to life, accident, and health insurance; motor vehicle insurance;
casualty insurance, and fidelity, guaranty and surety bonds; fire insurance
and allied lines, including inland marine; workers' compensation insurance;
title insurance; health maintenance organizations; third party administrators;
and corporations issuing prepaid legal services contracts. The department
anticipates the adopted rates will produce revenue of $49,338,032 to the state's
general revenue fund.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code articles 4.17,
5.12, 5.24, 5.49, 5.68, 9.46, 21.07-6 §21, 23.08A, and 20A.33 and §36.001.
These articles provide authorization for the Texas Department of Insurance
to assess maintenance taxes and fees for the lines of insurance and related
activities specified in the adopted §1.414. Article 4.17 establishes
a maintenance tax based on insurance premiums for life, accident, and health
coverage and the gross considerations for annuity and endowment contracts.
Article 5.12 establishes a maintenance tax based on insurance premiums for
motor vehicle coverage. Article 5.24 establishes a maintenance tax based on
insurance premiums for casualty insurance and fidelity, guaranty and surety
bonds coverage. Article 5.49 establishes a maintenance tax based on insurance
premiums for fire and allied lines coverage, including inland marine. Article
5.68 establishes a maintenance tax based on insurance premiums for workers'
compensation coverage. Article 9.46 establishes a maintenance fee based on
insurance premiums for title coverage. Article 21.07-6 § 21 establishes
a maintenance tax based on the gross amount of administrative or service fees
for third party administrators. Article 23.08A establishes a maintenance tax
based on gross revenue of corporations issuing prepaid legal service contracts.
The Texas Health Maintenance Organization Act, Section 33 (Article 20A.33),
establishes an annual tax based on the gross amounts of revenues collected
for the issuance of health maintenance certificates or contracts. Section
36.001 authorizes the commissioner of insurance to adopt rules for the conduct
and execution of the duties and functions of the department only as authorized
by statute.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on December 18, 2001.
TRD-200108073
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: January 7, 2002
Proposal publication date: November 16, 2001
For further information, please call: (512)463-6327
Subchapter J. EXAMINATION EXPENSES AND ASSESSMENTS
28 TAC §7.1012
The Commissioner of Insurance adopts an amendment to §7.1012
concerning assessments to cover the expenses of examining insurance companies.
The amendment is adopted without changes to the text as proposed in the November
16, 2001, issue of the
Texas Register
(26
TexReg 9361) and will not be republished.
The amendment is necessary to provide a rate of assessment for domestic
and foreign insurance company examination expenses in 2002 which will provide
the revenue necessary to fund the appropriations made by the Legislature.
Section 7.1012 provides the method and rates of assessment for examination
expenses of foreign and domestic insurance companies. Rates of assessment
are levied against and collected from each domestic insurance company based
on admitted assets and gross premium receipts for the 2001 calendar year,
and from each foreign insurance company examined during the calendar year
2002 based on a percentage of the gross salary paid to an examiner for each
month or part of a month during which the examination is made. The department
anticipates that the adopted rate will produce revenue of $13,657,721 to the
state's general revenue fund. The expenses and charges to be assessed are
in addition to, and not in lieu of, any other charge which may be made under
the law, including the Insurance Code article 1.16.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code article 1.16
and §36.001. Article 1.16(a) and (b) authorize the commissioner of insurance
to make assessments necessary to cover the expenses of examining insurance
companies and to comply with the provisions of the Insurance Code articles
1.16, 1.17, and 1.18, in such amounts as the commissioner certifies to be
just and reasonable. In addition, Article 1.16(c) provides that expenses incurred
in the examination of foreign insurers by Texas examiners shall be collected
by the commissioner by assessment. Section 36.001 authorizes the commissioner
of insurance to adopt rules for the conduct and execution of the duties and
functions of the department only as authorized by statute.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on December 18, 2001.
TRD-200108074
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: January 7, 2002
Proposal publication date: November 16, 2001
For further information, please call: (512) 463-6327
Subchapter E. EXAMINATIONS AND ANNUAL REPORTS
Chapter 7.
CORPORATE AND FINANCIAL REGULATION
Chapter 25.
INSURANCE PREMIUM FINANCE