2005 Texas Insurance Code CHAPTER 259. THIRD-PARTY ADMINISTRATORS

INSURANCE CODE

CHAPTER 259. THIRD-PARTY ADMINISTRATORS


	§ 259.001. DEFINITIONS.  In this chapter:                                   
		(1)  "Administrative or service fees" means all 
consideration, fees, assessments, payments, reimbursements, dues, 
and other compensation received for services as an administrator 
during a calendar year.  The term does not include sales 
commissions.
		(2)  "Administrator" has the meaning assigned by 
Section 4151.001.          

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 259.002. MAINTENANCE TAX IMPOSED.  A maintenance tax is 
imposed on each authorized administrator with administrative or 
service fees subject to taxation under Section 259.004.  The tax 
required by this chapter is in addition to other taxes imposed that 
are not in conflict with this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 259.003. MAXIMUM RATE;  ANNUAL ADJUSTMENT.  (a) The 
rate of assessment set by the commissioner may not exceed one 
percent of the administrative or service fees subject to taxation 
under Section 259.004.
	(b)  The commissioner shall annually adjust the rate of 
assessment of the maintenance tax so that the tax imposed that year, 
together with any unexpended funds produced by the tax, produces 
the amount the commissioner determines is necessary to pay the 
expenses of regulating administrators.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 259.004. ADMINISTRATIVE AND SERVICE FEES SUBJECT TO 
TAXATION.  An administrator shall pay maintenance taxes under this 
chapter on the administrator's correctly reported administrative 
or service fees.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 259.005. MAINTENANCE TAX DUE DATES.  The administrator 
shall pay the maintenance tax annually, semiannually, or on another 
periodic basis, as determined by the comptroller.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.