The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Administrative or service fees--The total gross amount of all consideration, fees, assessments, payments, reimbursements, dues, and any other compensation, monetary or otherwise, received by a third party administrator during the taxable year. Administrative or service fees shall not include sales commissions received by an administrator that has a valid agent's license or lawfully distributed by the administrator to licensed agents or other sales representatives. Administrative or service fees shall not include those amounts received for the administration of employee benefit plans governed exclusively by ERISA.
2. (2) Administrator, third party administrator, or TPA--A person who collects premiums or contributions from, or who adjusts or settles claims in connection with life, health and accident benefits or annuities for residents of this state, but the term does not include those persons to the extent their operations are specifically excluded in the Insurance Code, Article 21.07-6, §(1)(A)-(R), or are exempted from regulation pursuant to §7.1606(a) of this title (relating to Exemption from Department Licensing and Regulation for Certain Administrators).
3. (3) ERISA--The Employee Retirement Income Security Act of 1974, codified at 29 United States Code §1001, et seq., which includes the series of federal statutes regulating employee benefit plans and pension plans.
4. (4) Functions of a group policyholder--All services, functions, duties, or activities which may lawfully be delegated to a policyholder pursuant to a contract between an insurer and a group policyholder.

5. (5) Plan--A plan, fund, or program established, adopted, or maintained by a plan sponsor, insurer, or person to the extent that the plan, fund, or program is established, adopted, or maintained to provide:

   1. (A) indemnification or expense reimbursement for a life, health, or accident benefit; or
   2. (B) an individual or group annuity business.
6. (6) Trade name--An assumed name or DBA (doing business as) which is used by an administrator in its operations or activities with residents of this state.

Source Note:The provisions of this §7.1601 adopted to be effective September 14, 1994, 19 TexReg 6855.