INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE D. TITLE INSURANCE MAINTENANCE FEES

CHAPTER 271. TITLE INSURANCE MAINTENANCE FEES

Sec. 271.001.  APPLICABILITY OF CERTAIN DEFINITIONS.  In this chapter, a term defined by Chapter 2501 has the meaning assigned by that chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.002.  MAINTENANCE FEE IMPOSED.  (a)  A maintenance fee is imposed on all premiums subject to assessment under Section 271.006.
(b)  The maintenance fee is not a tax and shall be reported and paid separately from premium and retaliatory taxes.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 15, eff. June 15, 2007.

Sec. 271.003.  DUPLICATION OF ASSESSMENT PROHIBITED WITH RESPECT TO TITLE INSURANCE AGENTS.  The maintenance fee is included in the division of premiums and may not be separately charged to a title insurance agent.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.004.  DETERMINING RATE OF ASSESSMENT.  (a)  The commissioner shall annually determine the rate of assessment of the maintenance fee.
(b)  In determining the rate of assessment, the commissioner shall consider the requirement to reimburse the appropriate portion of the general revenue fund under Section 201.052.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.005.  MAXIMUM RATE;  ANNUAL ADJUSTMENT.  (a)  The rate of assessment set by the commissioner may not exceed one percent of the gross premiums subject to assessment under Section 271.006.
(b)  The commissioner shall annually adjust the rate of assessment of the maintenance fee so that the fee imposed that year, together with any unexpended funds produced by the fee, produces the amount the commissioner determines is necessary to pay the expenses during the succeeding year of regulating title insurance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.006.  PREMIUMS SUBJECT TO ASSESSMENT.  An insurer shall pay maintenance fees under this chapter on the correctly reported gross premiums from writing title insurance in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.007.  COLLECTION OF MAINTENANCE FEE.  The comptroller shall collect the maintenance fee.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.008.  DUTY TO ADVISE COMPTROLLER OF RATE.  The commissioner shall advise the comptroller of the applicable rate of assessment of the maintenance fee not later than the 45th day before the due date of the maintenance fee return for the period for which that fee is due.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.009.  EFFECT OF LATE ADVISEMENT OF RATE.  (a)  Except as provided by Subsection (b), if the commissioner does not advise the comptroller of the applicable rate of assessment of the maintenance fee by the date required by Section 271.008, the rate of assessment is the rate imposed in the preceding period.
(b)  If the commissioner advises the comptroller of the applicable rate of assessment after the fee has been assessed, the comptroller shall:
(1)  advise each insurer in writing of the amount of any additional fees due;  or
(2)  refund any excess fees paid.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.010.  DEPOSIT OF MAINTENANCE FEES.  (a)  The comptroller shall deposit maintenance fees collected under this chapter in the general revenue fund to be reallocated to the Texas Department of Insurance operating account.
(b)  Amounts in the Texas Department of Insurance operating account may be transferred to the appropriate portion of the general revenue fund in accordance with Section 201.052.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.011.  MAINTENANCE FEE DUE DATES.  (a)  The insurer shall pay the maintenance fee on an annual, semiannual, or other periodic basis, as determined by the comptroller.
(b)  The comptroller may require semiannual or other periodic payment only from an insurer whose maintenance fee liability under this chapter for the preceding year was at least $2,000.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 271.012.  RULES.  The commissioner may adopt reasonable rules to implement payments under this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.