| (iii) Each member must remit to the association payment
in full of its assessed amount within 30 days of receipt of notice
of assessment. If the association has not received payment in full
of a member's allocated amount of assessment within 40 days of notice
of the receipt by the member of the notice of assessment, then the
association must report to the Commissioner the fact that the assessment
has not been paid. The Commissioner may take such actions as are permitted
under the Insurance Code, including, but not limited to, actions authorized
by Insurance Code Chapter 82, to consider revocation of the certificate
of authority of the delinquent member. Any action by the Commissioner
will in no way affect the right of the association to proceed against
the member in any court of law or equity in the United States for
any remedy provided by law or contract to the association, including,
but not limited to, the right to collect the member's assessment.
A member, by mailing payment of its allocated amount of assessment
as provided by this section, does not waive any right it may have
to contest the computation of its allocated amount of assessment.
A contest does not, however, toll the time in which the assessment
must be paid, or the report is made to the Commissioner.
(5) Basis of computation of deficit, surplus, and assessments.
The computation of the deficit or surplus in operations of the association
and the computation of assessment of members and policyholders must
be computed on a calendar-year basis in accordance with the reporting
requirements of the annual statement filed with the department.
(e) Premium tax credit (offset) for member assessments.
To the extent that a member has been assessed and has paid one or
more assessments as contemplated by this subchapter and has not received
reimbursement from the association for the assessments, that member,
as provided for in Insurance Code §2203.251, must be allowed
a credit against its premium taxes under Insurance Code Chapter 221,
for all lines of insurance that the member is writing in Texas that
are subject to a premium tax under Insurance Code Chapter 221. The
tax credit, in the aggregate amount of the assessments, plus interest
at a rate to be approved by the Commissioner, must be allowed at a
rate of 20% per year for five successive years following the year
in which the deficit was sustained and, at the option of the member,
may be taken over an additional number of years. For purposes of this
premium tax offset, expense fees paid pursuant to §5.2002(b)(1)
and (2) of this title (relating to Operation of the Texas Medical
Liability Insurance Underwriting Association) are deemed to be assessments.
(f) Auditing of members. The association may audit
the policies, records, book of accounts, documents, and related material
of any member that are necessary to carry out its functions. Such
material must be provided by the members in the form and with the
frequency reasonably required by rules adopted by the Commissioner.
|
| Source Note: The provisions of this §5.2003 adopted to be effective October 31, 1984, 9 TexReg 5427; amended to be effective June 27, 1986, 11 TexReg 2744; amended to be effective January 19, 1988, 13 TexReg 124; amended to be effective June 17, 1988, 13 TexReg 2836; amended to be effective March 18, 1993, 18 TexReg 1411; amended to be effective January 23, 2005, 30 TexReg 76; amended to be effective September 16, 2020, 45 TexReg 6363 |
