SECTION 7.22. Certification of Assessments/Claims Paid, and Credit against Premium Taxes for Members of the Texas Catastrophe Property Insurance Association under the Insurance Code, Article 21.49

(a) On or before the 15th day of February of each year, the Texas Catastrophe Property Insurance Association shall certify to the State Board of Insurance the total amount of assessments paid by members and the total amount of claims paid by the association during the preceding calendar year, which certification shall include a summary of the total amount of claims paid during the preceding calendar year showing the year or years in which the losses were incurred. In the event the aggregate amount of either assessments paid or claims paid on losses that were incurred in a single calendar year exceeds $100 million, the association shall list the dollar amount of such excess of $100 million that is attributable to each individual insurer. For the purpose of determining the amount attributable to each individual member insurer of a member group composed of two or more individual member insurers, the association shall obtain from each member group a certification of the following: the percentage participation of each individual member insurer in the member group's assessment or assessments during the previous calendar year; and the total amount of money paid by each individual insurer of the member group for each assessment during the previous calendar year. On or before the first day of February of each year, each individual insurer of a member group shall cause the foregoing information to be certified to the association. The books and records of each individual insurer must reflect the amounts as certified to the association.

(b) An insurer is eligible for a tax credit under the Insurance Code, Article 21.49, §19, only to the extent its share or a portion of its share of the assessment (as determined by the association) of total insured losses exceeding $100 million in the year for which the tax credit is claimed has been paid. No insurer is entitled to a greater amount of aggregate tax credit than its share of total insured losses exceeding $100 million which have been paid.

(c) Any dispute between an insurer and the association as to the amount allowable as an admitted asset or for credit against premium taxes, is subject to the appeal provisions of the Insurance Code, Article 21.49, §9.

Source Note: The provisions of §7.22 adopted to be effective June 22, 1984, 9 TexReg 3122.