2005 Texas Insurance Code CHAPTER 281. RETALIATORY PROVISIONS

INSURANCE CODE

SUBTITLE E. OTHER TAXES

CHAPTER 281. RETALIATORY PROVISIONS

SUBCHAPTER A. RETALIATORY TAXES AND OTHER CHARGES


	§ 281.001. DEFINITIONS.  In this subchapter:                                
		(1)  "Domestic insurer" means an insurer organized in 
this state.           
		(2)  "Foreign insurer" means an insurer organized in 
another state.         
		(3)  "Tax or other charge" includes:                                          
			(A)  a tax, including an income, corporate 
franchise, or maintenance tax;  
			(B)  a fee, including a regulatory fee similar to 
a maintenance tax;       
			(C)  a license;                                                              
			(D)  a fine;                                                                 
			(E)  a penalty;                                                              
			(F)  a deposit requirement;  and                                             
			(G)  any other obligation.                                                   

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


	§ 281.002. TREATMENT OF ALIEN INSURER AS FOREIGN 
INSURER.  For purposes of this subchapter, an alien insurer is 
considered to be organized in the state designated by the insurer in 
which the insurer:
		(1)  has established its principal office or agency in 
the United States;   
		(2)  maintains the greatest amount of its assets held 
in trust or on deposit for the security of its policyholders or 
policyholders and creditors in the United States;  or
		(3)  was admitted to engage in business in the United 
States.               

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


	§ 281.003. EXCEPTION.  This subchapter does not apply to 
a person, company, firm, association, group, corporation, or 
insurance organization of any kind from another state that engages 
in business in this state if:
		(1)  at least 15 percent of the voting stock of the 
person, company, firm, association, group, corporation, or 
insurance organization is owned by a corporation organized under 
the laws of and domiciled in this state;  and
		(2)  the person, company, firm, association, group, 
corporation, or insurance organization met the requirements of 
Subdivision (1) before January 30, 1957.

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


	§ 281.004. RETALIATORY TAXES OR OTHER CHARGES, 
PROHIBITIONS, AND RESTRICTIONS.  (a) The comptroller shall impose 
and collect a tax or other charge or a prohibition or restriction on 
a foreign insurer authorized to engage in business in this state if:
		(1)  the foreign insurer's state of organization by law 
imposes a tax or other charge or a prohibition or restriction on a 
similar domestic insurer that is or may be authorized to engage in 
business in that other state;  and
		(2)  the sum of the taxes or other charges, 
prohibitions, and restrictions imposed by that other state is more 
than the sum of the taxes or other charges, prohibitions, and 
restrictions that this state directly imposes on the foreign 
insurer.
	(b)  The comptroller shall impose and collect the tax or 
other charge, prohibition, or restriction under Subsection (a) in 
the same manner and for the same purpose as the foreign insurer's 
state of organization.
	(c)  The sum of the taxes or other charges that this state 
imposes on a foreign insurer under this subchapter may not exceed 
the sum of the taxes or other charges imposed by the foreign 
insurer's state of organization on a similar domestic insurer that 
is or may be authorized to engage in business in that other state.

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


	§ 281.005. EXCLUSION OF CERTAIN TAXES OR CHARGES.  In 
determining an insurer's taxes or other charges under this 
subchapter, the comptroller may not consider:
		(1)  an ad valorem tax on property;                                           
		(2)  a personal income tax;                                                   
		(3)  a sales tax;                                                             
		(4)  a surcharge that an insurer may recover directly 
from policyholders;  or
		(5)  an assessment for a special purpose, such as an 
assessment for a guaranty association, high risk health pool, joint 
underwriting association, or windstorm association, under the law 
of this or another state.

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


	§ 281.006. TREATMENT OF CERTAIN TAX REDUCTIONS AND 
CREDITS.  (a) If another state by law reduces a tax rate or grants a 
tax credit to a domestic insurer that makes an investment in or 
maintains offices in that state or that meets a similar 
requirement, the law that reduces the rate or grants the credit 
shall be applied in the same manner in this state for the purpose of 
determining the total taxes or other charges under this subchapter.
	(b)  For purposes of this subchapter, a tax offset or credit 
related to an assessment described by Section 281.005 is considered 
a tax paid in this or another state, as appropriate.

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


	§ 281.007. TAX REPORT;  ADMINISTRATION AND COLLECTION OF 
TAX.  The comptroller shall prescribe a due date for filing a 
report and paying a tax imposed under this subchapter.

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

SUBCHAPTER B. RETALIATORY PENALTIES OR OTHER OBLIGATIONS


	§ 281.051. DEFINITIONS.  In this subchapter:                                
		(1)  "Domestic insurer" and "foreign insurer" have the 
meanings assigned by Section 281.001.
		(2)  "Penalty or other obligation" includes a sanction, 
fine, financial, deposit, or regulatory requirement, and any other 
obligation, prohibition, or restriction.

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


	§ 281.052. IMPOSITION OF PENALTY OR OTHER 
OBLIGATION.  (a) The Texas Department of Insurance shall impose a 
penalty or other obligation on a foreign insurer authorized to 
engage in the business of insurance in this state if:
		(1)  the insurance department or an insurance 
regulatory official of the foreign insurer's state of organization 
imposes a penalty or other obligation on any domestic insurer 
authorized to engage in the business of insurance in that state;  
and
		(2)  the penalty or other obligation is imposed because 
the Texas Department of Insurance did not:
			(A)  obtain or maintain accreditation 
certification or a similar form of approval, compliance, or 
acceptance from or as a member of the National Association of 
Insurance Commissioners or a committee, task force, working group, 
or advisory committee of the association;  or
			(B)  comply with a model act, regulation, report, 
or requirement of the National Association of Insurance 
Commissioners or a committee, task force, working group, or 
advisory committee of the association, including a market conduct, 
financial examination, or annual financial statement.
	(b)  A penalty or other obligation imposed by the Texas 
Department of Insurance on a foreign insurer under this section 
must be the same as the penalty or other obligation imposed on the 
domestic insurer by the insurance department or regulatory official 
of the foreign insurer's state of organization.

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