34 Tex. Admin. Code § 3.828 - Workers' Compensation Insurance Gross Premiums for the Purpose of Maintenance Taxes
(a) Definitions.
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise. Terms not
defined in this section shall have the meaning assigned to them in the Texas
Basic Manual of Rules, Classifications and Experience Rating Plan for Workers'
Compensation and Employers' Liability Insurance.
(1) Deductible credit--The amount by which
the Estimated Modified/Schedule Rating/Network Premium is reduced as a result
of the policyholder's election of a deductible option.
(2) Dividends paid to policyholders--The
return of part of the premium paid for a policy issued on a participating
basis.
(3) Return premium--The
portion of a premium that is returned to the insured as a result of
cancellation, endorsement, rate adjustment, or a calculation that the total
estimated policy cost was in excess of the actual premium.
(4) Texas Basic Manual of Rules,
Classifications and Experience Rating Plan for Workers' Compensation and
Employers' Liability Insurance--A manual published by the Texas Department of
Insurance. The manual provides insurers licensed in Texas to write workers'
compensation insurance with the rules, classifications, endorsements, forms,
and experience rating plan applicable to Texas workers' compensation
policies.
(b) Gross
written premiums subject to maintenance tax. For new or renewal policies
issued, and for additional written premium or return premium due to
endorsement, cancellation, audit, or other adjustment, with an effective or
adjustment date on or after September 1, 1993, gross written premiums subject
to maintenance tax shall be computed according to the Texas Basic Manual of
Rules, Classifications and Experience Rating Plan for Workers' Compensation and
Employers' Liability Insurance, Rule III. For maintenance tax reporting
purposes, the deductible credit, if any, must be added back to the total
estimated policy cost to determine gross written premium.
(c) For retrospectively rated policies, any
adjustments made are treated as gross written premium subject to maintenance
tax in the year of the adjustment for the purpose of computing gross workers'
compensation premiums.
(d) This
section applies to licensed insurers only. The tax base for certified
self-insurers is defined by Labor Code, §
407.104.
Notes
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