Tex. Ins. Code Section 221.001
Applicability of Chapter


This chapter applies to an insurer, organization, or concern that receives gross premiums subject to taxation under Section 221.002 (Tax Imposed; Rate), including a reciprocal or interinsurance exchange that elects to be subject to taxation under this chapter in accordance with Section 224.003 (Taxation Election) and a Lloyd’s plan.


This chapter does not apply to:


a fraternal benefit society, including a fraternal benefit society operating under Chapter 885 (Fraternal Benefit Societies);


a group hospital service corporation operating under Chapter 842 (Group Hospital Service Corporations);


a stipulated premium company operating under Chapter 884 (Stipulated Premium Insurance Companies);


a mutual assessment association, company, or corporation regulated under Chapter 887 (Provisions Applicable to Certain Mutual Assessment Companies);


a purely cooperative or mutual fire insurance company carried on by its members solely for the protection of their own property and not for profit, except as provided by Section 221.002 (Tax Imposed; Rate)(b)(13); or


a farm mutual insurance company operating under Chapter 911 (Farm Mutual Insurance Companies), unless the company is acting as a fronting insurer.


In this section, “fronting insurer” means a farm mutual insurance company:


issuing an insurance policy that is the result of:


marketing by an insurer not affiliated with the farm mutual insurance company;


an application submitted by a consumer to an insurer not affiliated with the farm mutual insurance company; or


an agreement with an insurer that is not a farm mutual insurance company solely for the purpose of being regulated under Chapter 911 (Farm Mutual Insurance Companies); or


that cedes 85 percent or more of the farm mutual insurance company’s direct written premium to one or more nonaffiliated reinsurers.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 1083 (H.B. 3496), Sec. 1, eff. September 1, 2017.

Source: Section 221.001 — Applicability of Chapter, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­221.­htm#221.­001 (accessed Dec. 2, 2023).

Dec. 2, 2023

§ 221.001’s source at texas​.gov