|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise. Terms not defined in this section
shall have the meaning assigned to them in the Texas Basic Manual
of Rules, Classifications and Experience Rating Plan for Workers'
Compensation and Employers' Liability Insurance.
(1) Deductible credit--The amount by which the Estimated
Modified/Schedule Rating/Network Premium is reduced as a result of
the policyholder's election of a deductible option.
(2) Dividends paid to policyholders--The return of
part of the premium paid for a policy issued on a participating basis.
(3) Return premium--The portion of a premium that is
returned to the insured as a result of cancellation, endorsement,
rate adjustment, or a calculation that the total estimated policy
cost was in excess of the actual premium.
(4) Texas Basic Manual of Rules, Classifications and
Experience Rating Plan for Workers' Compensation and Employers' Liability
Insurance--A manual published by the Texas Department of Insurance.
The manual provides insurers licensed in Texas to write workers' compensation
insurance with the rules, classifications, endorsements, forms, and
experience rating plan applicable to Texas workers' compensation policies.
(b) Gross written premiums subject to maintenance tax.
For new or renewal policies issued, and for additional written premium
or return premium due to endorsement, cancellation, audit, or other
adjustment, with an effective or adjustment date on or after September
1, 1993, gross written premiums subject to maintenance tax shall be
computed according to the Texas Basic Manual of Rules, Classifications
and Experience Rating Plan for Workers' Compensation and Employers'
Liability Insurance, Rule III. For maintenance tax reporting purposes,
the deductible credit, if any, must be added back to the total estimated
policy cost to determine gross written premium.
(c) For retrospectively rated policies, any adjustments
made are treated as gross written premium subject to maintenance tax
in the year of the adjustment for the purpose of computing gross workers'
(d) This section applies to licensed insurers only.
The tax base for certified self-insurers is defined by Labor Code, §407.104.