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

1. (1) Gross premium definition for property and casualty companies--

   1. (A) Gross premiums are the total gross amount of premiums, membership fees, assessments, dues, and any other considerations for the taxable year on insurance written on each and every kind of property or risk located in the state:

      1. (i) excluding premiums received from other licensed companies for reinsurance premiums and premium finance charges clearly identified in a premium note or other evidence of premium payable that is separately stated to the policyholder (i.e., invoice, billing, contract); and
      2. (ii) deducting return premiums (i.e., unearned premiums returned to policyholders) and dividends paid to policyholders, with no deduction for premiums paid for reinsurance.

   2. (B) The gross premium definition described in subparagraph (A) of this paragraph applies to every insurance carrier, including Lloyds, reciprocal exchanges, and any other organization or concern writing gross premiums from the business of fire, marine, inland marine, accident, credit, livestock, fidelity, guaranty, surety, casualty, employers' liability, or any other kind or character of insurance. However, the definition does not apply to:

      1. (i) title insurance companies;
      2. (ii) life insurance, personal accident insurance, life and accident insurance, or health and accident insurance for profit, written by life insurance companies, life and accident insurance companies, or health and accident insurance companies;
      3. (iii) fraternal benefit associations or societies in this state, non-profit group hospital service plans, stipulated premium companies, mutual assessment associations, companies or corporations regulated by the Insurance Code, Chapter 14, as amended; and
      4. (iv) cooperative or mutual fire insurance companies administered by the members thereof solely for the protection of their own property and not for profit.

2. (2) Gross premium definition for title insurance companies--Gross premiums are the total gross amount of premiums, membership fees, dues, and any other considerations received by the title insurer or its agent for the taxable year on title insurance written on property located in this state:

   1. (A) excluding premiums received from other licensed title insurance companies for reinsurance; and
   2. (B) deducting return premiums paid to policyholders, with no deduction for premiums paid for reinsurance.

3. (3) Taxation on distribution of title insurance premiums--

   1. (A) Premium and maintenance taxes are levied on all amounts defined to be title premiums whether paid to the title insurance company or retained by the title insurance agent.
   2. (B) The collection of the title premium and maintenance taxes remitted to the comptroller on the premium retained by the title agent is incorporated in the division of the premium between insurer and agent so that the insurer receives the premium and maintenance taxes due on the agent's portion of the premium.
   3. (C) The insurer is required to remit to the comptroller the total title premium and maintenance taxes due.

Source Note:The provisions of this §3.831 adopted to be effective May 17, 1996, 21 TexReg 3948.