(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Annual statement--A comprehensive statement, in the format promulgated by the National Association of Insurance Commissioners (NAIC), of an insurer's financial condition, business operations, and activities, required to be filed with state insurance departments and the NAIC.
  (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) Net direct premium--The total gross direct premium written by an insurer, as reported to the Texas Department of Insurance and reflected on the insurer's NAIC Annual Statement State Page Exhibit for:
    (A) policies of:
      (i) homeowner's insurance;
      (ii) fire insurance;
      (iii) farm and ranch owner's insurance;
      (iv) private passenger automobile physical damage insurance; and
      (v) commercial automobile physical damage insurance; and
    (B) the nonliability portion of a commercial multiple peril policy.
  (4) State fiscal year--The time period from September 1 through August 31.
  (5) Twelve-month period--The time period from January 1 through December 31, which is the same as the tax year and NAIC Annual Statement period.
(b) Calculation of the assessment.
  (1) For state fiscal years beginning September 1, 2013, and September 1, 2014, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:
    (A) $30 million; or
    (B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for that state fiscal year.
  (2) For state fiscal years beginning September 1, 2015, and September 1, 2016, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:
    (A) $30 million; or
    (B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for that state fiscal year other than:
      (i) appropriations for contributions to the Texas Emergency Services Retirement System made under Government Code, §614.104(d) (Fund); and
      (ii) appropriations to the Texas A&M Forest Service for grants to volunteer fire departments in a total amount not to exceed $11,500,000.
  (3) For state fiscal years beginning on or after September 1, 2017, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:
    (A) $30 million; or
    (B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for that state fiscal year other than appropriations for contributions to the Texas Emergency Services Retirement System made under Government Code, §614.104(d).
  (4) Based on premium data provided by the Texas Department of Insurance compiled from the NAIC Annual Statements filed by insurers, the comptroller will calculate the amount of each insurer's assessment as follows:
    (A) Divide each insurer's Texas net direct premiums written for the twelve-month period by the total of all insurers' Texas net direct premiums written for the twelve-month period.
    (B) Multiply the ratios obtained in subparagraph (A) of this paragraph by the total assessment that the Commissioner of Insurance provides to the comptroller. The result is the assessment due from the insurer.
(c) Billing date and due date. The comptroller will bill the assessment on or before May 31. Payment of the assessment is due by August 1.
(d) Enforcement provisions. Tax Code, Title 2, Subtitles A (General Provisions) and B (Enforcement and Collection), apply to the comptroller's administration, collection, and enforcement of the assessment under Insurance Code, Chapter 2007 (Assessment for Rural Fire Protection).
(e) Retaliatory taxes. The assessment may not be included on the retaliatory tax worksheet since insurers may recoup the assessment from policyholders.
(f) Recoupment of assessment. An insurer may recover an assessment under this section as provided under Insurance Code, §2007.005 (Recovery of Assessment). An insurer that recovers the assessment from its policyholders is required by Insurance Code, §2007.006 (Notice to Policyholders) to provide notice to each policyholder regarding the amount of the assessment being recovered on the declarations page, the renewal certificate, or a billing statement.
(g) Assessment final date. The amount that is assessed an insurer under Insurance Code, Chapter 2007, is final as of the date the billings are generated by the comptroller. The comptroller will not recalculate the amount due under this section to reflect any amendments to an insurer's Annual Statement. The assessment under Insurance Code, Chapter 2007 is not a deficiency determination under Tax Code, §111.008 (Deficiency Determination).

Source Note: The provisions of this §3.834 adopted to be effective September 25, 2002, 27 TexReg 8956; amended to be effective March 30, 2008, 33 TexReg 2552; amended to be effective July 1, 2013, 38 TexReg 4186; amended to be effective July 9, 2017, 42 TexReg 3407