Texas Insurance Code - Not Codified - Article 1.16. Expenses Of Examinations; Disposition Of Sums Collected
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Art. 1.16. EXPENSES OF EXAMINATIONS; DISPOSITION OF SUMS
COLLECTED.
Article repealed effective April 1, 2007
(a) The expenses of all examinations of domestic insurance
companies made on behalf of the State of Texas by the State Board of
Insurance or under its authority shall be paid by the corporations
examined in such amount as the Commissioner of Insurance shall
certify to be just and reasonable.
(b) Assessments for the expenses of such domestic
examination which shall be sufficient to meet all the expenses and
disbursements necessary to comply with the provisions of the laws
of Texas relating to the examination of insurance companies and to
comply with the provisions of this Article and Articles 1.17 and
1.18 of this Code, shall be made by the State Board of Insurance
upon the corporations or associations to be examined taking into
consideration annual premium receipts, and/or admitted assets that
are not attributable 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)), and/or insurance in force; provided such
assessments shall be made and collected as follows: (1) expenses
attributable directly to a specific examination including
employees' salaries and expenses and expenses provided by Article
1.28 of this Code shall be collected at the time of examination;
(2) assessments calculated annually for each corporation or
association which take into consideration annual premium receipts,
and/or admitted assets that are not attributable 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)), and/or insurance
in force shall be assessed annually for each such corporation or
association. In computing the assessments, the board may not
consider insurance premiums for insurance contracted for by a state
or federal governmental entity to provide welfare benefits to
designated welfare recipients or contracted for in accordance with
or in furtherance of Title 2, Human Resources Code, or the federal
Social Security Act (42 U.S.C. Section 301 et seq.). The amount of
all examination and evaluation fees paid in each taxable year to the
State of Texas by an insurance carrier shall be allowed as a credit
on the amount of premium taxes due under this article. The
limitations provided by Sections 803.007(1) and (2)(B) of this code
for domestic insurance companies apply to foreign insurance
companies.
(c) Examiners and other personnel employed by the State
Board of Insurance when traveling on official state business
related to the examination of insurance companies outside this
state shall be reimbursed for the actual cost of transportation,
lodging, meals, subsistence expenses, and parking fees or shall be
paid a per diem rate established by the State Board of Insurance
based on local economic conditions. The State Board of Insurance
shall establish guidelines and procedures for the efficient and
effective administration of these travel payment procedures and
shall periodically revise and update these guidelines and
procedures including the maximum actual or per diem allowance.
(d) All sums collected by the State Board of Insurance
provided in this Article shall be deposited in the State Treasury to
the credit of the State Board of Insurance operating fund; and the
salaries and expenses of the actuaries and examiners, and all other
expenses relating to such examinations, shall be paid upon the
certificate of the State Board of Insurance by warrant of the
Comptroller of Public Accounts drawn upon such fund.
(e) If at any time it shall appear that additional pro rata
assessments are necessary to cover all of the expenses and
disbursements required by law and necessary to comply with this
Article and Articles 1.17 and 1.18 of this Code, the same shall be
made, and any surplus arising from any and all such assessments,
over and above such expenses and disbursements, shall be applied in
reduction of subsequent assessments.
(f) In case of an examination of a company not organized
under the laws of Texas, whether such examination is made by the
Texas authorities alone, or jointly with the insurance supervisory
authorities of another state or states, the expenses of such
examination due to Texas' participation therein shall be borne by
the company under examination. Payment of such cost shall be made
by the company upon presentation of itemized written statement by
the Commissioner of Insurance and shall consist of the examiners'
remuneration and expenses, and the other expenses of the State
Board of Insurance properly allocable to the examination. Payment
shall be made directly to the State Board of Insurance, and all
money collected by assessment on foreign companies for the cost of
examination shall be deposited in the State Treasury by the State
Board of Insurance to the credit of the State Board of Insurance
operating fund and shall be spent as provided by the General
Appropriations Act only on warrants issued by the Comptroller of
Public Accounts pursuant to duly certified requisitions of the
State Board of Insurance. The remuneration of examiners
participating in examinations of insurance company books or records
located in states other than Texas shall be fixed by the
Commissioner of Insurance based on the salary rate recommended by
the National Association of Insurance Commissioners or the
examiners' regular salary rate.
Acts 1951, 52nd Leg., ch. 491. Amended by Acts 1955, 54th Leg., p.
826, ch. 307, Sec. 4; Acts 1979, 66th Leg., p. 568, ch. 262, Sec. 1,
eff. Aug. 27, 1979.
Amended by Acts 1983, 68th Leg., p. 3911, ch. 622, Sec. 16, eff.
Sept. 1, 1983; Acts 1985, 69th Leg., ch. 161, Sec. 2, eff. May 24,
1985; Acts 1987, 70th Leg. 2nd C.S., ch. 67, Sec. 7, eff. Aug. 4,
1987; Acts 1991, 72nd Leg., ch. 242, Sec. 11.50(a), eff. Sept. 1,
1991; Subsec. (b) amended by Acts 1993, 73rd Leg., ch. 685, Sec.
7.09, eff. Sept. 1, 1993; Subsec. (b) amended by Acts 2003, 78th
Leg., ch. 209, Sec. 2, eff. Jan. 1, 2004.
Article: 1.10 1.12 1.13 1.14-3 1.15 1.15A 1.15B 1.16 1.17 1.17A 1.18 1.19 1.32 1.33 1.39
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Last modified: August 10, 2007
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