34 Tex. Admin. Code § 3.834 - Volunteer Fire Department Assistance Fund Assessment
(a) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Annual statement--A comprehensive statement, in the format promulgated by the
National Association of Insurance Commissioners (NAIC), of an insurer's
financial condition, business operations, and activities, required to be filed
with state insurance departments and the NAIC.
(2) Insurer--An insurance entity that is
authorized to engage in business in this state, including a stock company,
mutual, farm mutual, county mutual, Lloyd's plan, or reciprocal or
interinsurance exchange, as of the assessment date.
(3) Net direct premium--The total gross
direct premium written by an insurer, as reported to the Texas Department of
Insurance and reflected on the insurer's NAIC Annual Statement State Page
Exhibit for:
(A) policies of:
(i) homeowner's insurance;
(ii) fire insurance;
(iii) farm and ranch owner's
insurance;
(iv) private passenger
automobile physical damage insurance; and
(v) commercial automobile physical damage
insurance; and
(B) the
nonliability portion of a commercial multiple peril policy.
(4) State fiscal year--The time
period from September 1 through August 31.
(5) Twelve-month period--The time period from
January 1 through December 31, which is the same as the tax year and NAIC
Annual Statement period.
(b) Calculation of the assessment.
(1) For state fiscal years beginning
September 1, 2013 and September 1, 2014, the comptroller shall assess against
all insurers to which this section applies amounts necessary for each state
fiscal year, as determined by the Commissioner of Insurance, to collect a
combined total equal to the lesser of:
(A)
$30 million; or
(B) the total
amount that the General Appropriations Act appropriates from the volunteer fire
department assistance fund account in the general revenue fund for that state
fiscal year.
(2) For
state fiscal years beginning September 1, 2015 and September 1, 2016, the
comptroller shall assess against all insurers to which this section applies
amounts necessary for each state fiscal year, as determined by the Commissioner
of Insurance, to collect a combined total equal to the lesser of:
(A) $30 million; or
(B) the total amount that the General
Appropriations Act appropriates from the volunteer fire department assistance
fund account in the general revenue fund for that state fiscal year other than:
(i) appropriations for contributions to the
Texas Emergency Services Retirement System made under Government Code, §
614.104(d)
(Fund); and
(ii) appropriations to the Texas A&M
Forest Service for grants to volunteer fire departments in a total amount not
to exceed $11,500,000.
(3) For state fiscal years beginning on or
after September 1, 2017, the comptroller shall assess against all insurers to
which this section applies amounts necessary for each state fiscal year, as
determined by the Commissioner of Insurance, to collect a combined total equal
to the lesser of:
(A) $30 million;
or
(B) the total amount that the
General Appropriations Act appropriates from the volunteer fire department
assistance fund account in the general revenue fund for that state fiscal year
other than appropriations for contributions to the Texas Emergency Services
Retirement System made under Government Code, §
614.104(d).
(4) Based on premium data provided
by the Texas Department of Insurance compiled from the NAIC Annual Statements
filed by insurers, the comptroller will calculate the amount of each insurer's
assessment as follows:
(A) Divide each
insurer's Texas net direct premiums written for the twelve-month period by the
total of all insurers' Texas net direct premiums written for the twelve-month
period.
(B) Multiply the ratios
obtained in subparagraph (A) of this paragraph by the total assessment that the
Commissioner of Insurance provides to the comptroller. The result is the
assessment due from the insurer.
(c) Billing date and due date. The
comptroller will bill the assessment on or before May 31. Payment of the
assessment is due by August 1.
(d)
Enforcement provisions. Tax Code, Title 2, Subtitles A (General Provisions) and
B (Enforcement and Collection), apply to the comptroller's administration,
collection, and enforcement of the assessment under Insurance Code, Chapter
2007 (Assessment for Rural Fire Protection).
(e) Retaliatory taxes. The assessment may not
be included on the retaliatory tax worksheet since insurers may recoup the
assessment from policyholders.
(f)
Recoupment of assessment. An insurer may recover an assessment under this
section as provided under Insurance Code, §
2007.005 (Recovery of
Assessment). An insurer that recovers the assessment from its policyholders is
required by Insurance Code, §
2007.006 (Notice to
Policyholders) to provide notice to each policyholder regarding the amount of
the assessment being recovered on the declarations page, the renewal
certificate, or a billing statement.
(g) Assessment final date. The amount that is
assessed an insurer under Insurance Code, Chapter 2007, is final as of the date
the billings are generated by the comptroller. The comptroller will not
recalculate the amount due under this section to reflect any amendments to an
insurer's Annual Statement. The assessment under Insurance Code, Chapter 2007
is not a deficiency determination under Tax Code, §
111.008 (Deficiency
Determination).
Notes
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