Tex. Ins. Code Section 842.205
Incurred Expenses


In this section, “general expenses” means expenses incurred by a group hospital service corporation in the operation of its business other than:


a tax;


a license fee;


a commission; or


an expense incurred in the performance of a contract:


made directly or indirectly with this state or the United States; and


under which the corporation does not assume an insurance risk.


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.


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.

Source: Section 842.205 — Incurred Expenses, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­842.­htm#842.­205 (accessed Jun. 5, 2024).

Jun. 5, 2024

§ 842.205’s source at texas​.gov