| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to treatment of premiums for group life insurance issued |
|
|
through voluntary employee beneficiary associations. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 1131.503, Insurance Code, is amended by |
|
|
adding Subsection (c) to read as follows: |
|
|
(c) This subsection applies only to a voluntary employee |
|
|
beneficiary association described by Section 501(c)(9), Internal |
|
|
Revenue Code of 1986, that collects member contributions, including |
|
|
money that is contributed specifically for insurance and that is |
|
|
remitted as premium under this section following a retrospective |
|
|
determination to an insurer that issues a group life insurance |
|
|
policy. For purposes of Section 222.002, gross premiums do not |
|
|
include any amount collected from association members as membership |
|
|
contributions, fees, assessments, dues, revenues, or otherwise, to |
|
|
the extent the amount exceeds the final premium amount remitted to |
|
|
the insurer. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to a premium tax report originally due on or after January 1, 2008. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |