2009 Texas Code
INSURANCE CODE
TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES
CHAPTER 281. RETALIATORY PROVISIONS  

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE E. OTHER TAXES

CHAPTER 281. RETALIATORY PROVISIONS

SUBCHAPTER A. RETALIATORY TAXES AND OTHER CHARGES

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 281.006. TREATMENT OF CERTAIN TAX REDUCTIONS AND CREDITS.

(a) Repealed by Acts 2007, 80th Leg., R.S., Ch. 932, Sec. 22(b),

eff. June 15, 2007.

(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, Sec. 1, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

932, Sec. 22(b), eff. June 15, 2007.

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 281.008. RECIPROCITY AGREEMENTS. The comptroller by rule

may enter into a reciprocity agreement with another state under

which the parties agree to mutually set aside retaliatory

provisions in situations in which this state and the other state

determine that retaliation is not the preferred approach to

protect their domestic insurers from excessive taxation or other

financial obligations. In adopting rules under this section, the

comptroller may not adopt a rule that does not specifically

implement this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

932, Sec. 16, eff. June 15, 2007.

SUBCHAPTER B. RETALIATORY PENALTIES OR OTHER OBLIGATIONS

Sec. 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, Sec. 1, eff. April 1,

2005.

Sec. 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, Sec. 1, eff. April 1,

2005.