SUBCHAPTER J. Examination Expenses and Assessments 28 TAC §7.1012
SUBCHAPTER Q. Taxation of Administrative Services28 TAC §§7.1701 - 7.1711
1. INTRODUCTION. The Texas Department of Insurance proposes repeal of §§7.8, 7.15, 7.27, 7.71, 7.613, 7.1012, and 7.1701 - 7.1711, concerning corporate and financial regulation. Repeal of these sections is necessary because they are obsolete and the need for these rules no longer exists. Repeal of §7.8, concerning annual statement filing instructions for county mutual insurance companies, is necessary because it is superseded by 28 TAC §7.7(f), concerning insurer accounting requirements for subordinated indebtedness. Repeal of §7.15 , concerning premium taxes provided for under Insurance Code §982.114, is necessary because the Department no longer collects premium taxes, and the functions of administering, collecting, and enforcing these premium taxes are the responsibility of the Comptroller of Public Accounts pursuant to the Insurance Code §201.051. Repeal of §7.27, concerning the regulation of accounting for reinsurance agreements by life, accident and health, and annuity insurers, is necessary to eliminate a redundancy between §7.27 and §7.18, and the potential for conflicting interpretations. The substantive provisions of §7.27 are contained in Statement of Statutory Accounting Principle No. 61 and Appendix A-791, which are part of The Accounting Practices and Procedures Manual (Manual) published by the National Association of Insurance Commissioners and adopted by reference in §7.18. Repeal of §7.71, concerning requirements for filing quarterly and annual statements, is necessary because the 2001 quarterly and 2001 annual statements and other reports adopted under the section have been filed and the due dates for such filings have passed. Repeal of §7.613, concerning reinsurance ceded to nonlicensed reinsurers during the transitional period (from September 1, 1989 to the inception, anniversary, or renewal date not less than four months after September 1, 1989), is necessary because the transitional period has expired, and therefore, there no longer is a need for this rule. Repeal of §7.1012, concerning the 2006 foreign and domestic insurance company examination assessments, is necessary because the due dates for filing the overhead assessments assessed under the section have passed; therefore, the repealed section is no longer necessary. Repeal of §§7.1701 - 7.1711, concerning taxation of administrative services, is necessary because the enactment of HB 3315, 80th Legislature, Regular Session, effective June 15, 2007, repealed the administrative service tax under Insurance Code Article 4.11A, and thus, the Department no longer needs these rules to administer this tax function.
The Department identified these sections for repeal as part of the Department's ongoing review of existing rules pursuant to Government Code §2001.039.
2. FISCAL NOTE. Danny Saenz, Senior Associate Commissioner, Financial Program, has determined that during the first five years that the proposed repeals are in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the repeals. There will be no effect on local employment or the local economy as a result of the proposed repeals.
3. PUBLIC BENEFIT/COST NOTE. Mr. Saenz also has determined that for each year of the first five years that the repeals are in effect, the public benefit anticipated as a result of the repeals will be the elimination of obsolete regulations. There will be no economic cost to any individuals, insurers, or other Department regulated entities, regardless of size, as a result of the proposed repeals.
4. ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL AND MICRO BUSINESSES. In accordance with the Government Code §2006.002(c), the Department has determined that this proposal will not have an adverse economic effect on small or micro-businesses because the proposal simply repeals unnecessary rules. Therefore, in accordance with the Government Code §2006.002(c), the Department is not required to prepare a regulatory flexibility analysis.
5. TAKINGS IMPACT ASSESSMENT. The Department has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking or require a takings impact assessment under the Government Code §2007.043.
6. REQUEST FOR PUBLIC COMMENT. To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on May 19, 2008 to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Danny Saenz, Senior Associate Commissioner, Financial Program, Mail Code 305-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. Any request for a public hearing must be submitted separately to the Office of Chief Clerk before the close of the public comment period. If a hearing is held, written and oral comments presented at the hearing will be considered.
7. STATUTORY AUTHORITY. The repeal of §§7.8, 7.15, 7.27, 7.71, 7.613, 7.1012, and 7.1701 - 7.1711 is proposed pursuant to Insurance Code §36.001, which provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.
8. CROSS REFERENCE TO STATUTE. The following statutes are affected by this proposed repeal: Insurance Code Chapters 2201, 2210, and 2211 and §§32.041, 401.151 - 401.152, 401.155 - 401.156, 421.001, 802.001 - 802.003, 802.051 - 802.056, 841.255, 842.003, 842.201, 842.202, 843.151, 843.155, 844.001 - 844.005, 844.051 - 844.054, 844.101, 861.254, 861.255, 862.001, 862.003, 882.001, 882.003, 883.002, 883.204, 884.256, 885.401, 885.403-885.406, 886.107, 887.009, 887.060, 887.401 - 887.407, 911.001, 911.304, 912.002, 912.201 - 912.203, 912.301, 941.252, 942.201, 961.002, 961.003, 961.052, 961.202, 982.001, 982.002, 982.004, 982.052, 982.101, 982.102, 982.103, 982.104, 982.106, 982.108, 982.110 - 982.112, 982.114, 982.251 - 982.255, 982.302 - 982.306, 984.153, 984.201, 984.202, 1301.009, 1506.057, 2551.001, and 2551.152.
SUBCHAPTER A. Examination and Financial Analysis
7.8.Annual Statement Filing Instructions for County Mutual Insurance Companies.
§7.15. Premium Taxes Provided for under the Insurance Code, Art. 3.25.
§7.27. Regulation of Accounting for Reinsurance Agreements by Life, Accident and Health, and Annuity Insurers
§7.71. Requirement for Filing the 2001 Quarterly and 2001 Annual Statements, Other Reporting Forms, and Diskettes or Electronic Filings with the NAIC via the Internet.
SUBCHAPTER F. Reinsurance
7.613. Reinsurance Ceded to Nonlicensed Reinsurers during the Transitional Period.
SUBCHAPTER J. Examination Expenses and Assessments
§7.1012. Domestic and Foreign Insurance Company Examination Assessments, 2006.
SUBCHAPTER Q. Taxation of Administrative Services
§7.1702 Form Filings.
§7.1703 Tax Payment Requirements.
§7.1704 Collection and Payment of Tax.
§7.1705 Date for Filing Tax Return and Paying Tax.
§7.1706 Payment under Protest.
§7.1707 Quarterly Prepayment of Taxes.
§7.1708 Application of Other Laws./
§7.1709 Tax Additional.
§7.1710 1987 Annual Administrative Service Tax Return.
§7.1711 Quarterly Tax Return for Administrative Services--1988.