Texas Insurance Code - Section 222.002. Tax Imposed
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§ 222.002. TAX IMPOSED. (a) An annual tax is imposed on:
(1) each insurer that receives gross premiums subject
to taxation under this section; and
(2) each health maintenance organization that
receives gross revenues from the sale of health maintenance
certificates or contracts.
(b) Except as otherwise provided by this section, in
determining an insurer's taxable gross premiums or a health
maintenance organization's taxable gross revenues, the insurer or
health maintenance organization shall include the total gross
amounts of premiums, membership fees, assessments, dues, revenues,
and other considerations received by the insurer or health
maintenance organization in a calendar year from any kind of health
maintenance organization certificate or contract or insurance
policy or contract covering a person located in this state and
arising from the business of a health maintenance organization or
the business of life insurance, accident insurance, health
insurance, life and accident insurance, life and health insurance,
health and accident insurance, life, health, and accident
insurance, including variable life insurance, credit life
insurance, and credit accident and health insurance for profit or
otherwise or for mutual benefit or protection.
(c) The following are not included in determining an
insurer's taxable gross premiums or a health maintenance
organization's taxable gross revenues:
(1) returned premiums or revenues;
(2) dividends applied to purchase paid-up additions to
insurance or to shorten the endowment or premium payment period;
(3) premiums received from an insurer for reinsurance;
(4) premiums or revenues received from the treasury of
the United States for insurance or benefits contracted for by the
federal government in accordance with or in furtherance of Title
XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.)
and its subsequent amendments;
(5) premiums or revenues paid on group health,
accident, and life policies or contracts in which the group covered
by the policy or contract consists of a single nonprofit trust
established to provide coverage primarily for employees of:
(A) a municipality, county, or hospital district
in this state; or
(B) a county or municipal hospital, without
regard to whether the employees are employees of the county or
municipality or of an entity operating the hospital on behalf of the
county or municipality; or
(6) premiums or revenues excluded by another law of
this state.
(d) For purposes of Subsection (c)(3), a stop-loss or excess
loss insurance policy issued to a health maintenance organization
is considered reinsurance. In determining an insurer's taxable
gross premiums or a health maintenance organization's taxable gross
revenues, an insurer or health maintenance organization is not
entitled to a deduction for premiums paid for reinsurance.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
Amended by Acts 2005, 79th Leg., ch. 728, § 11.002(b), eff. Sept.
1, 2005.
Section: 221.002 221.003 221.004 221.005 221.006 221.007 222.001 222.002 222.003 222.004 222.005 222.006 222.007 222.008 223.001
Last modified: August 11, 2007
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