CHAPTER 271. TITLE INSURANCE MAINTENANCE FEES

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE D. TITLE INSURANCE MAINTENANCE FEES

CHAPTER 271. TITLE INSURANCE MAINTENANCE FEES

Sec. 271.001. APPLICABILITY OF CERTAIN DEFINITIONS. In this

chapter, a term defined by Chapter 2501 has the meaning assigned

by that chapter.

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

2005.

Sec. 271.002. MAINTENANCE FEE IMPOSED. (a) A maintenance fee

is imposed on all premiums subject to assessment under Section

271.006.

(b) The maintenance fee is not a tax and shall be reported and

paid separately from premium and retaliatory taxes.

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. 15, eff. June 15, 2007.

Sec. 271.003. DUPLICATION OF ASSESSMENT PROHIBITED WITH RESPECT

TO TITLE INSURANCE AGENTS. The maintenance fee is included in

the division of premiums and may not be separately charged to a

title insurance agent.

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

2005.

Sec. 271.004. DETERMINING RATE OF ASSESSMENT. (a) The

commissioner shall annually determine the rate of assessment of

the maintenance fee.

(b) In determining the rate of assessment, the commissioner

shall consider the requirement to reimburse the appropriate

portion of the general revenue fund under Section 201.052.

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

2005.

Sec. 271.005. MAXIMUM RATE; ANNUAL ADJUSTMENT. (a) The rate of

assessment set by the commissioner may not exceed one percent of

the gross premiums subject to assessment under Section 271.006.

(b) The commissioner shall annually adjust the rate of

assessment of the maintenance fee so that the fee imposed that

year, together with any unexpended funds produced by the fee,

produces the amount the commissioner determines is necessary to

pay the expenses during the succeeding year of regulating title

insurance.

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

2005.

Sec. 271.006. PREMIUMS SUBJECT TO ASSESSMENT. An insurer shall

pay maintenance fees under this chapter on the correctly reported

gross premiums from writing title insurance in this state.

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

2005.

Sec. 271.007. COLLECTION OF MAINTENANCE FEE. The comptroller

shall collect the maintenance fee.

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

2005.

Sec. 271.008. DUTY TO ADVISE COMPTROLLER OF RATE. The

commissioner shall advise the comptroller of the applicable rate

of assessment of the maintenance fee not later than the 45th day

before the due date of the maintenance fee return for the period

for which that fee is due.

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

2005.

Sec. 271.009. EFFECT OF LATE ADVISEMENT OF RATE. (a) Except as

provided by Subsection (b), if the commissioner does not advise

the comptroller of the applicable rate of assessment of the

maintenance fee by the date required by Section 271.008, the rate

of assessment is the rate imposed in the preceding period.

(b) If the commissioner advises the comptroller of the

applicable rate of assessment after the fee has been assessed,

the comptroller shall:

(1) advise each insurer in writing of the amount of any

additional fees due; or

(2) refund any excess fees paid.

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

2005.

Sec. 271.010. DEPOSIT OF MAINTENANCE FEES. (a) The comptroller

shall deposit maintenance fees collected under this chapter in

the general revenue fund to be reallocated to the Texas

Department of Insurance operating account.

(b) Amounts in the Texas Department of Insurance operating

account may be transferred to the appropriate portion of the

general revenue fund in accordance with Section 201.052.

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

2005.

Sec. 271.011. MAINTENANCE FEE DUE DATES. (a) The insurer shall

pay the maintenance fee on an annual, semiannual, or other

periodic basis, as determined by the comptroller.

(b) The comptroller may require semiannual or other periodic

payment only from an insurer whose maintenance fee liability

under this chapter for the preceding year was at least $2,000.

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

2005.

Sec. 271.012. RULES. The commissioner may adopt reasonable

rules to implement payments under this chapter.

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

2005.