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

   1. (1) Assessment date--The date on which the Texas Department of Insurance (TDI) provides the comptroller with the database of authorized insurers.
   2. (2) Insurer--An insurance entity that is authorized to engage in business in this state, including a stock company, mutual, farm mutual, county mutual, Lloyd's plan, or reciprocal or interinsurance exchange, as of the assessment date.

   3. (3) Net direct premium--The gross direct premium written by an insurer, as reported to TDI on the insurer's Annual Statement State Page for:

      1. (A) policies of:

         1. (i) homeowner's insurance;
         2. (ii) fire insurance;
         3. (iii) farm and ranch owner's insurance;
         4. (iv) private passenger automobile physical damage insurance; and
         5. (v) commercial automobile physical damage insurance; and
      2. (B) the nonliability portion of a commercial multiple peril policy.
   4. (4) Twelve-month period--The time period from January 1 through December 31, which is the same as the tax year and annual statement period.
2. (b) Calculation of the assessment. The comptroller will use the following formula to calculate the amount of each insurer's assessment:
   Attached Graphic
   

3. (c) Billing date and due date.

   1. (1) The comptroller will bill the assessment on or before May 31.
   2. (2) Payment of the assessment is due by August 1.
4. (d) Enforcement provisions. Tax Code, Title 2, Subtitles A and B, apply to the comptroller's administration, collection, and enforcement of the assessment under Insurance Code, Article 5.102.
5. (e) Disallowance of assessment as a credit. Insurance Code, Article 5.102, does not provide for use of the assessment as a credit against premium or maintenance tax.
6. (f) Disallowance of assessment for retaliatory purposes. The assessment may not be included on the retaliatory tax worksheet.
7. (g) Recoupment of assessment. An insurer may recover an assessment under this section as provided under the Insurance Code, Chapter 5, Article 5.102.
8. (h) Assessment Final. The amount that is assessed an insurer under Insurance Code, Article 5.102, is final as of the assessment date. The comptroller will not recalculate the amount due under this section to reflect any changes in an insurer's Texas net direct premium. The assessment under Insurance Code, Article 5.102, is not a deficiency determination under Tax Code, §111.008.

Source Note:The provisions of this §3.834 adopted to be effective September 25, 2002, 27 TexReg 8956.