(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Annual statement--A comprehensive statement, in
the format promulgated by the National Association of Insurance Commissioners
(NAIC), of an insurer's financial condition, business operations,
and activities, required to be filed with state insurance departments
and the NAIC.
(2) Insurer--An insurance entity that is authorized
to engage in business in this state, including a stock company, mutual,
farm mutual, county mutual, Lloyd's plan, or reciprocal or interinsurance
exchange, as of the assessment date.
(3) Net direct premium--The total gross direct premium
written by an insurer, as reported to the Texas Department of Insurance
and reflected on the insurer's NAIC Annual Statement State Page Exhibit
for:
(A) policies of:
(i) homeowner's insurance;
(ii) fire insurance;
(iii) farm and ranch owner's insurance;
(iv) private passenger automobile physical damage insurance;
and
(v) commercial automobile physical damage insurance;
and
(B) the nonliability portion of a commercial multiple
peril policy.
(4) State fiscal year--The time period from September
1 through August 31.
(5) Twelve-month period--The time period from January
1 through December 31, which is the same as the tax year and NAIC
Annual Statement period.
(b) Calculation of the assessment.
(1) For state fiscal years beginning September 1, 2013,
and September 1, 2014, the comptroller shall assess against all insurers
to which this section applies amounts necessary for each state fiscal
year, as determined by the Commissioner of Insurance, to collect a
combined total equal to the lesser of:
(A) $30 million; or
(B) the total amount that the General Appropriations
Act appropriates from the volunteer fire department assistance fund
account in the general revenue fund for that state fiscal year.
(2) For state fiscal years beginning September 1, 2015,
and September 1, 2016, the comptroller shall assess against all insurers
to which this section applies amounts necessary for each state fiscal
year, as determined by the Commissioner of Insurance, to collect a
combined total equal to the lesser of:
(A) $30 million; or
(B) the total amount that the General Appropriations
Act appropriates from the volunteer fire department assistance fund
account in the general revenue fund for that state fiscal year other
than:
(i) appropriations for contributions to the Texas Emergency
Services Retirement System made under Government Code, §614.104(d)
(Fund); and
(ii) appropriations to the Texas A&M Forest Service
for grants to volunteer fire departments in a total amount not to
exceed $11,500,000.
(3) For state fiscal years beginning on or after September
1, 2017, the comptroller shall assess against all insurers to which
this section applies amounts necessary for each state fiscal year,
as determined by the Commissioner of Insurance, to collect a combined
total equal to the lesser of:
(A) $30 million; or
(B) the total amount that the General Appropriations
Act appropriates from the volunteer fire department assistance fund
account in the general revenue fund for that state fiscal year other
than appropriations for contributions to the Texas Emergency Services
Retirement System made under Government Code, §614.104(d).
(4) Based on premium data provided by the Texas Department
of Insurance compiled from the NAIC Annual Statements filed by insurers,
the comptroller will calculate the amount of each insurer's assessment
as follows:
(A) Divide each insurer's Texas net direct premiums
written for the twelve-month period by the total of all insurers'
Texas net direct premiums written for the twelve-month period.
(B) Multiply the ratios obtained in subparagraph (A)
of this paragraph by the total assessment that the Commissioner of
Insurance provides to the comptroller. The result is the assessment
due from the insurer.
(c) Billing date and due date. The comptroller will
bill the assessment on or before May 31. Payment of the assessment
is due by August 1.
(d) Enforcement provisions. Tax Code, Title 2, Subtitles
A (General Provisions) and B (Enforcement and Collection), apply to
the comptroller's administration, collection, and enforcement of the
assessment under Insurance Code, Chapter 2007 (Assessment for Rural
Fire Protection).
(e) Retaliatory taxes. The assessment may not be included
on the retaliatory tax worksheet since insurers may recoup the assessment
from policyholders.
(f) Recoupment of assessment. An insurer may recover
an assessment under this section as provided under Insurance Code,
§2007.005 (Recovery of Assessment). An insurer that recovers
the assessment from its policyholders is required by Insurance Code,
§2007.006 (Notice to Policyholders) to provide notice to each
policyholder regarding the amount of the assessment being recovered
on the declarations page, the renewal certificate, or a billing statement.
(g) Assessment final date. The amount that is assessed
an insurer under Insurance Code, Chapter 2007, is final as of the
date the billings are generated by the comptroller. The comptroller
will not recalculate the amount due under this section to reflect
any amendments to an insurer's Annual Statement. The assessment under
Insurance Code, Chapter 2007 is not a deficiency determination under
Tax Code, §111.008 (Deficiency Determination).
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Source Note: The provisions of this §3.834 adopted to be effective September 25, 2002, 27 TexReg 8956; amended to be effective March 30, 2008, 33 TexReg 2552; amended to be effective July 1, 2013, 38 TexReg 4186; amended to be effective July 9, 2017, 42 TexReg 3407 |