Tex. Ins. Code Section 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.

Source: Section 842.205 — Incurred Expenses, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­842.­htm#842.­205 (accessed May 11, 2024).

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Accessed:
May 11, 2024

§ 842.205’s source at texas​.gov