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You are here: www.tdi.texas.gov . company . taxes2

Examination Expenses - 2013

The Texas Department of Insurance will bill companies for examination/overhead assessment amounts due. Domestic insurance companies shall pay examination expenses as follows:

  1. The actual salaries and expense of the examiners allocable to an examination. The expenses assessed shall be those actually incurred by the examiner to the extent permitted by law.
  2. An overhead assessment to cover administrative departmental expenses attributable to examination of companies, which shall be paid and computed as follows:

    1. 0.00215 of 1.0% of the admitted assets of the company as of December 31, 2013 upon the corporations or associations to be examined taking into consideration the annual admitted assets that are not attributable to 90% of pension plan contracts as defined section 818(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 818(a). [ Texas Overhead Assessment Exemption Form].
    2. 0.00903 of 1.0% of the gross premium receipts of the company as of December 31, 2013 upon the corporations or associations to be examined taking into consideration the annual premium receipts that are not attributable to 90% of pension plan contracts as defined section 818(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 818(a). [ Texas Overhead Assessment Exemption Form] Gross premium receipts does not include insurance premiums for insurance contracted for by a state or federal government entity to provide welfare benefits to designated welfare recipients or contracted for in accordance with or in furtherance of the Texas Human Resources Code, Title 2, or the federal Social Security Act (42 U.S.C. §301 et seq.).
    3. Except as provided in section IV following, if a company was a domestic insurance company for less than a full year during calendar year 2013, the overhead assessment for the company is the overhead assessment required under sections I and II above divided by 365 and multiplied by the number of days the company was a domestic insurance company during calendar year 2013.
    4. If the overhead assessment, as computed under I and II above produces an assessment of less than $25 total, a minimum assessment of $25 will be levied and collected.
    5. The overhead assessment is based on the assets and premium receipts in the annual statements, except where there as been an understating of assets and/or premiums.

Foreign insurance companies examined during the 2014 calendar year shall pay for examination expenses according to the overhead rate of assessment specified in this paragraph in addition to all other payments required by law including, but not limited to, TEX. INS. ANN. §§401.151-401.152 and 401.155-401.156. Each foreign insurance company examined shall pay 34% of the gross salary paid to each examiner for each month or partial month of the examination in order to cover the examiner's longevity pay; state contributions to retirement, social security, and the state paid portion of insurance premiums; and vacation and sick leave accruals. The overhead assessment will be levied with each month's billing.

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Last updated: 09/06/2014

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