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.
