Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.355 - Insurance Services

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Affiliated group--A group of one or more
				  entities in which a controlling interest is owned by a common owner or owners,
				  either corporate or noncorporate, or by one or more of the member
				  entities.
(2) Certified public
				  accountancy firm--A person who holds a firm license issued under Occupations
				  Code, Chapter 901, Subchapter H (Firm License Requirements), or a firm that
				  practices public accountancy in this state under Occupations Code, §
											901.461
				  (Practice by Certain Out-of-State Firms).
(3) Controlling interest--
(A) for a corporation, either more than 50%,
				  owned directly or indirectly, of the total combined voting power of all classes
				  of stock of the corporation, or more than 50%, owned directly or indirectly, of
				  the beneficial ownership interest in the voting stock of the
				  corporation;
(B) for a partnership,
				  association, trust, or other entity other than a limited liability company,
				  more than 50%, owned directly or indirectly, of the capital, profits, or
				  beneficial interest in the partnership, association, trust, or other entity;
				  and
(C) for a limited liability
				  company, either more than 50%, owned directly or indirectly, of the total
				  membership interest of the limited liability company or more than 50%, owned
				  directly or indirectly, of the beneficial ownership interest in the membership
				  interest of the limited liability company.
(4) Insurance loss or damage appraisal--Any
				  activity performed for purposes of valuing damages, or estimating the quantity,
				  value, or extent of loss of property. Appraisal activities performed prior to
				  damage or loss, such as the appraisal of jewelry for scheduling on a homeowners
				  insurance policy, are not considered loss or damage appraisal.
(5) Insurance inspection--Any activity
				  performed to evaluate risks to property, to survey or value property in
				  connection with the furnishing of insurance coverage, or any other similar
				  activity.
(6) Insurance
				  investigation--Any activity performed to evaluate an individual's eligibility
				  or qualifications for insurance coverage, or for the payment of benefits, or
				  any other similar activity. For example, the assembly or evaluation of
				  information for the purpose of determining whether to issue a life insurance
				  policy to a specific individual would be considered an insurance
				  investigation.
(7) Insurance or
				  annuity actuarial analysis or research--Any activity performed in connection
				  with the calculation of rates for a policy of insurance or annuity rates,
				  reserves, refunds, dividends, insurance benefits, or other similar
				  activities.
(8) Insurance claims
				  adjustment or claims processing--Any activities to supervise, handle,
				  investigate, pay, settle, or adjust claims or losses.
(9) Insurance loss prevention service--Any
				  activities performed in an effort to identify, analyze, evaluate, control,
				  anticipate and/or eliminate the occurrence of accidents, losses, or damage.
				  Examples include: survey recommendations, training programs, consultations,
				  analysis of accident causes, and industrial hygiene and health
				  services.
(10) Insurance
				  carrier--Every type of insurer engaged in the business of insurance that is
				  licensed or operates under or is required to be licensed or to operate under
				  the provisions of the Insurance Code.
(11) Public insurance adjuster--A person, as
				  set out in Insurance Code, §
											4102.001(3),
				  who:
(A) for direct, indirect, or any other
				  compensation:
(i) acts on behalf of an insured
				  in negotiating for or effecting the settlement of a claim or claims for loss or
				  damage under any policy of insurance covering real or personal property;
				  or
(ii) on behalf of any other
				  public insurance adjuster, investigates, settles, or adjusts or advises or
				  assists an insured with a claim or claims for loss of damage under any policy
				  of insurance covering real or personal property; or
(B) advertises, solicits business, or holds
				  himself or herself out to the public as an adjuster of claims for loss or
				  damage under any policy of insurance covering real or personal
				  property.
(12)
				  Self-insured plan--A plan whereby an employer maintains funds for providing
				  employee benefits rather than transferring risk by purchasing insurance from an
				  insurance carrier. This plan is not considered a policy of insurance for sales
				  tax purposes.
(13) Third-party
				  administrator--A person hired by an employer to administer the provisions of
				  the employer's self-insured plan.