Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter GG - INSURANCE TAX
Section 3.828 - Workers' Compensation Insurance Gross Premiums for the Purpose of Maintenance Taxes

Universal Citation: 34 TX Admin Code § 3.828

Current through Reg. 50, No. 13; March 28, 2025

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. Terms not defined in this section shall have the meaning assigned to them in the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance.

(1) Deductible credit--The amount by which the Estimated Modified/Schedule Rating/Network Premium is reduced as a result of the policyholder's election of a deductible option.

(2) Dividends paid to policyholders--The return of part of the premium paid for a policy issued on a participating basis.

(3) Return premium--The portion of a premium that is returned to the insured as a result of cancellation, endorsement, rate adjustment, or a calculation that the total estimated policy cost was in excess of the actual premium.

(4) Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance--A manual published by the Texas Department of Insurance. The manual provides insurers licensed in Texas to write workers' compensation insurance with the rules, classifications, endorsements, forms, and experience rating plan applicable to Texas workers' compensation policies.

(b) Gross written premiums subject to maintenance tax. For new or renewal policies issued, and for additional written premium or return premium due to endorsement, cancellation, audit, or other adjustment, with an effective or adjustment date on or after September 1, 1993, gross written premiums subject to maintenance tax shall be computed according to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, Rule III. For maintenance tax reporting purposes, the deductible credit, if any, must be added back to the total estimated policy cost to determine gross written premium.

(c) For retrospectively rated policies, any adjustments made are treated as gross written premium subject to maintenance tax in the year of the adjustment for the purpose of computing gross workers' compensation premiums.

(d) This section applies to licensed insurers only. The tax base for certified self-insurers is defined by Labor Code, § 407.104.

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