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Texas Insurance Code - Not Codified - Article 1.16. Expenses Of Examinations; Disposition Of Sums Collected

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 1.16. Expenses Of Examinations; Disposition Of Sums Collected

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Article repealed effective April 1, 2007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.

Last modified: August 11, 2007