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.