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Humana Insurance Co. v. Texas Health Insurance Risk Pool

The amounts assessed in the case were for the sole purpose of operating the Texas Health Insurance Risk Pool, and as such did not constitute taxes. Thus, the trial court correctly granted summary judgment in favor of the Texas Department of Insurance and the pool. Corpus Christi Court of Appeals, No. 13-06-333-CV.

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OPINION

Before Justices Garza, Benavides, and Vela.

Appellant, Humana Insurance Company (“Humana”), appeals from a final judgment in favor of appellees, Texas Health Insurance Risk Pool, Charles E. Baxter, Chairman of the Board of Directors of the Texas Health Insurance Risk Pool, (collectively “the Pool”), the Texas Department of Insurance and Mike Geeslin, Commissioner of Insurance (collectively “TDI”). Humana sought to recover excessive assessments it paid to the Pool in 1998 and 1999, pursuant to former article 3.77 of the Texas Insurance Code.*fn1 By its first three issues, Humana argues that the trial court erred in granting TDI’s plea to the jurisdiction, and erred in denying Humana’s summary judgment with respect to whether the Pool exceeded its statutory authority by denying Humana’s request for a refund or credit on the amount of the assessment that it paid to the Pool. By its fourth issue it urges that the Pool’s interpretation of former article 3.77 of the Insurance Code amounts to a “rule” as that term is used by the Texas Administrative Procedures Act. Humana urges by its sixth issue that the trial court had jurisdiction because the interpretation of former article 3.77 violated its right to due process and sovereign immunity was not implicated.*fn2

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