(a) Property and casualty insurance. Each property and casualty insurer (including county mutual insurance companies) authorized to do business in this state must pay an annual assessment of $.057 on each property and casualty insurance policy or each certificate of insurance evidencing coverage under a group policy covering property and/or risks located in Texas that is in force on December 31.
(b) Life, health and accident insurance. Each life; health; accident; life and accident; accident and health; or life, accident and health insurer; and each health maintenance organization authorized to do business in this state must pay an annual assessment of $.057 on each individual policy or each certificate of insurance evidencing coverage under a group policy placed in force in this state with an initial premium paid during the year. For the purpose of determining this assessment, a certificate of insurance includes subscriber certificates issued under a group policy. A subscriber certificate may be for an individual or the individual and his/her family. Individual policy renewals or certificate of insurance renewals are not to be included in calculating the assessment. A term life policy that is converted to a whole life or universal life policy will be considered a new policy for purposes of the assessment unless the term life policy specifically contains a conversion option.
(c) Title insurance. Each title insurer authorized to do business in this state must pay an annual assessment of $.057 on each owner policy and each mortgage policy written during the year for property located in Texas for which the full premium is charged. In instances where two or more insurance companies co-insure a portion of the risk, each policy is subject to the assessment. For the purpose of determining this assessment, any policies on which the full basic premium is discounted or a credit is given will not be included.
(d) Purchase of a block of business. In instances where a block of business is purchased by another company, the following will apply:
  (1) Property and casualty insurance policies--The acquiring company is responsible for the assessment on each of the policies in force on December 31.
  (2) Life, accident, and health insurance policies--The original insurer is responsible for the assessment on the new policies which were ceded.
  (3) Title insurance policies--The original insurer is responsible for the assessment on the policies written on which full premium is charged.
(e) Due date of report and payment. The assessment must be reported and paid on or before March 1 following the end of the tax year for which the assessment is due.
(f) Penalty and interest. Failure to file and pay the assessment as provided under Insurance Code, Chapter 501, will subject the taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B.
(g) Interest on refunds. Under Tax Code, Title 2, a refund granted for a report period due on or after January 1, 2000, for an amount found to be erroneously paid, will include interest at the same variable interest rate charged on delinquent taxes. Interest accrues beginning the later of 60 days after the date of payment or the due date of the tax report and ending on either the date of allowance of the credit on account or a date not more than 10 days before the date of the refund warrant. A refund for a report period due before January 1, 2000, does not accrue interest. Interest does not accrue on a credit taken on a taxpayer's return.

Source Note: The provisions of this §3.832 adopted to be effective February 14, 1996, 21 TexReg 887; amended to be effective March 5, 2001, 26 TexReg 1874; amended to be effective November 21, 2004, 29 TexReg 10581; amended to be effective November 25, 2007, 32 TexReg 8318