Sec. 842.205.  INCURRED EXPENSES.  (a)  In this section, "general expenses" means expenses incurred by a group hospital service corporation in the operation of its business other than:
(1)  a tax;
(2)  a license fee;
(3)  a commission;  or
(4)  an expense incurred in the performance of a contract:
(A)  made directly or indirectly with this state or the United States;  and
(B)  under which the corporation does not assume an insurance risk.
(b)  Subject to Subsection (c), a group hospital service corporation may not incur during a calendar year general expenses that exceed 20 percent of the premiums earned in that calendar year.
(c)  For a group hospital service corporation earning $500 million or more in premiums in a calendar year, the maximum percentage of general expenses that may be incurred during a calendar year is reduced by one-half percent for each $50 million of premiums earned to a maximum percentage of 15 percent.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.