Texas § 842.205 INCURRED EXPENSES.

Texas Statutes

§ 842.205 — INCURRED EXPENSES.

Texas § 842.205

Code INInsurance Code

This text of Texas § 842.205 (INCURRED EXPENSES.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 842.205 (2026).

Text

Sec. 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

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Sec. 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.