February 18, 1950 

Hon. George B. Butler 

Chairman, Board of 

opinion no. v-1003. 

Insurance Commissioners 

Austin, Texas 

Re: The legality of credlting examination and 

valuation fees against 

premium taxes paid on 

Dear Sir: 

workmenls oompensatlon 

insurance. 

Your letter requestlng our opinion relative to 

the above captioned matter asks: 

"WI.11 you please advise me whether preq lures received by domestic Insurers on their 

workmen's oompensatlon insurance buslnesa ati 

to be reported and paid under the provisions 

of the present Article 7064a, and if so, whether examination and valuation fees paid by such 

insurers shall be allowed as a credit on the 

premium taxes in the manner set out in your 

opinion No. Q-967, dated December 14, 1949.” 

The answer to your questions 1s found in the 

ewording of Articles 7064 and 7064a, V.C.S. _ 

Article 7064, Xf.C.9. (Acts 49th Leg., 1945, 

oh.341, Sec. 1, p.574) provides, in part: 

"Fivery insurance cornoration. Lloyd's 

or reciprocals, and any other orRan1zatlon 

or conoern transactinn the business of fire, 

marine. marine Inland, acoldent, credit. 

title,.livestock, fidelity, guaranty, s&ety, casualty, workmeats compensation, employers ployers llabll~tg, llabll~tg, or any other kind or 

character character of insurance insurance business, business, other than 

the business of life Insurance. personal ac- 
Hon. George B. Butler, page 2 (v-1003) 

report to the Board of Insurance CommFssioners the gross amount of premix received 

upon property located in this State or on 

risks located in this State during the pre-: 

ceding year, and each of such Insurance 

carriers shall pay an annual tax upon such 

gross premium receipts of three and fivetenths per cent. . . .'I (Emphasis ours 

throughout this opinion unless otherwise 

indicated.) 

This Article then sets out variations depending on investments in Texas securities, and continues thus: 

II . . . The taxes aforesaid shall constitute all taxes collectible under the laws 

of this State against any such Insurance 

carriers except maintenance taxes specially levied under the laws of this State and 

assessed by the Board of Insurance Commlssloners to support the various activities 

of the divisions of the Board of Insurance 

Commlssloners, and except if any such carrier is writing personal accident or health 

and accident insurance other than workmen's 

compensation, it shall be taxed as otherwise 

provided by law on account of such business 

. . . 

?Phls Act shall be cumulative of all 

other laws and shall repeal Article 479, Revised Civil Statutes of 19;i5, as amended, and 

a~11 other laws onlr in so far as they levs'- 

any tax on any of the organizations affected 

by this Act or otherwise conflict with this 

Act, except as provided above." 

It is our opinion that it was the intent of 

the Legislature to subject all workmen's compensation 

insurance business to the provisions of the above Act. 

Artlole 7064a, entitled "Tax on domestic life, 

accident and health Insurance organizations," Acts 51st 

Leg., R.S.1949, ch.620, p.1365, provides, in part: 

"Every group of individuals, society, 

association, or corporation, (all of which 

shall be deemed included in the term 'Insurante brganlzatlon~ wherever used in this Act) 
Hon. George B. Butler, Page 3 (v-1003) 

organized under the laws 

transacting the business 

of this State and ---- - 

or 11x-e insurance, 

ersonal aocident Insurance, life and acoient insurance. or health an d accident insurance for profit . . . shall . . . file its 

annual statement . . . shall pay an annual 

tax of one per cent (1%) of the gross amount 

of premiums collected during such year from 

persons residing or domiciled In the State of 

Texas on aalicles of Insurance . . . Dravlded 

all taxes and license fees collectible under 

the laws of this State from any such insurante organleatlon, organized under the laws 

of this State, except, and only except unemployment oompensation taxes . . .; and In 

case of companies writinu workmen's compensation Insurance, the taxes otherwise Provided by law on account of such business 

. . ." 

It is our opinion that Article 7064a does not 

tax workmen's compensation premiums and specifically indicates that in case of lLfe, health and aocident aompanics also writing workmen's compensation Insurance, 

-their latter business is to be taxed under another statute, i.e. Artlole 7064. 

In reply to your first question you are advised that premitis received by domestio insurers on their 

workmen's compensation insurance business areto be reported and paid under the provisions of Article 7064, 

V.C.S., and not under AxWcle 7o64a, V.C.S. Your second 

question, depending upon' an affirmative answer to your 

first question, therefore need not be answered. Article 

7064 does not provide credit for examination and valuation fees. See Opinion v-967. 

SUMMARY 

Premiums received by domestic Insurers 

on their workmen's oompensatlon Insurance 
Hon. George B. Butler, page 4 (Q-1003) 

business are to be reported and pald under 

PrOViSlOnS of Article 7064, Q.C.S. 

Yours very truly, 

APPROQED: 

PRICE DANIEL 

Attorney General 

Ned McDaniel 

State Affairs Division 

Charles D. Mathews 

Executive Assistant 

B; "i"rF 

Q. F. Ta lor 

Assistant 

QFTrammmw