{"data":{"id":"us-tx/tex.-insurance-code-842.205","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 842.205","heading":"INCURRED EXPENSES.","body":"(a) In this section, \"general expenses\" means expenses incurred by a group hospital service corporation in the operation of its business other than:\n(1) a tax;\n(2) a license fee;\n(3) a commission; or\n(4) an expense incurred in the performance of a contract:\n(A) made directly or indirectly with this state or the United States; and\n(B) under which the corporation does not assume an insurance risk.\n(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.\n(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.\nAdded by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.","path":["INSURANCE CODE","TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES","SUBTITLE C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES","CHAPTER 842. GROUP HOSPITAL SERVICE CORPORATIONS","SUBCHAPTER E. REGULATION OF GROUP HOSPITAL SERVICE CORPORATIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.842.htm#842.205","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"6cb74ce7ca39a0a49a31942560a6c5c4cb415927bc47a86f77731b494573282f","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-842.204","next":"us-tx/tex.-insurance-code-842.206"},"notice":"GroundRules: Original legal text. Not legal advice."}