reglab/housing_qa huggingface dataset:
TX Ins Code § 2502.005 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter A. Prohibited Conduct in General|Section 2502.005. Civil Penalty

Sec. 2502.005.  CIVIL PENALTY.  (a)  A person is liable to the state for a civil penalty of not more than $5,000 if the person:(1)  wilfully violates Section 2502.003 or 2502.004;  or(2)  violates an order of the commissioner refusing to approve an application to issue a binder for title insurance or a title insurance policy prohibited by Section 2502.003(a).(b)  The department may bring an action in a Travis County district court to recover the penalty provided by this section.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.006 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter A. Prohibited Conduct in General|Section 2502.006. Certain Extra Hazardous Coverages Prohibited

Sec. 2502.006.  CERTAIN EXTRA HAZARDOUS COVERAGES PROHIBITED.  (a)  A title insurance company may not insure against loss or damage sustained by reason of any claim that under federal bankruptcy, state insolvency, or similar creditor's rights laws the transaction vesting title in the insured as shown in the policy or creating the lien of the insured mortgage is:(1)  a preference or preferential transfer under 11 U.S.C. Section 547;(2)  a fraudulent transfer under 11 U.S.C. Section 548;(3)  a transfer that is fraudulent as to present and future creditors under Section 24.005, Business & Commerce Code, or a similar law of another state; or(4)  a transfer that is fraudulent as to present creditors under Section 24.006, Business & Commerce Code, or a similar law of another state.(b)  The commissioner may by rule designate coverages that violate this section.  It is not a defense against a claim that a title insurance company has violated this section that the commissioner has not adopted a rule under this subsection.(c)  Title insurance issued in or on a form prescribed by the commissioner shall be considered to comply with this section.(d)  Nothing in this section prohibits title insurance with respect to liens, encumbrances, or other defects to title to land that:(1)  appear in the public records before the date on which the contract of title insurance is made;(2)  occur or result from transactions before the transaction vesting title in the insured or creating the lien of the insured mortgage; or(3)  result from failure to timely perfect or record any instrument before the date on which the contract of title insurance is made.(e)  A title insurance company may not engage in the business of title insurance in this state if the title insurance company provides insurance of the type prohibited by Subsection (a) anywhere in the United States, except to the extent that the laws of another state require the title insurance company to provide that type of insurance.|Added by Acts 2011, 82nd Leg., R.S., Ch. 1059 (S.B. 322), Sec. 1, eff. September 1, 2011.Added by Acts 2011, 82nd Leg., R.S., Ch. 1063 (S.B. 735), Sec. 1, eff. September 1, 2011.|
TX Ins Code § 2502.051 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.051. Rebates and Discounts Prohibited

Sec. 2502.051.  REBATES AND DISCOUNTS PROHIBITED.  A commission, rebate, discount, portion of a title insurance premium, or other thing of value may not be directly or indirectly paid, allowed, or permitted by a person engaged in the business of title insurance or received or accepted by a person for engaging in the business of title insurance or for soliciting or referring title insurance business.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.052 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.052. Certain Divisions of Real Property Charges Prohibited

Sec. 2502.052.  CERTAIN DIVISIONS OF REAL PROPERTY CHARGES PROHIBITED.  Other than for services actually performed, a person may not give or accept any portion, split, or percentage of a charge made or received for a settlement or closing performed in connection with a transaction involving the conveyance or mortgaging of real property located in this state.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.053 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.053. Certain Compensatory Payments Not Prohibited

Sec. 2502.053.  CERTAIN COMPENSATORY PAYMENTS NOT PROHIBITED.  This subchapter does not prohibit:(1)  payment for services actually performed by a title insurance company, title insurance agent, or direct operation in connection with title examination or with closing the transaction or furnishing title evidence if:(A)  the payment does not exceed the percentage of premium or other amount established by the commissioner for the payment;  and(B)  the person receiving the payment is licensed as provided by this title;(2)  payment of bona fide compensation to a bona fide employee principally employed by a title insurance company, title insurance agent, or direct operation;(3)  reasonable payment for goods or facilities actually provided and received;  or(4)  payment for services actually performed by an attorney in connection with title examination or with closing the transaction, if the payment does not exceed a reasonable charge for the services.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.054 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.054. Certain Divisions of Premiums Not Prohibited

Sec. 2502.054.  CERTAIN DIVISIONS OF PREMIUMS NOT PROHIBITED.  (a)  For purposes of this section, a subsidiary is a company at least 50 percent of the voting stock of which is owned by the title insurance company or by a wholly owned subsidiary of the title insurance company.(b)  This subchapter does not:(1)  prohibit a title insurance company from:(A)  appointing as its title insurance agent for a county a person who owns or leases and operates an abstract plant for that county;  and(B)  arranging for a division of premiums with the agent as set by the commissioner;  or(2)  affect the division of a premium between a title insurance company and its subsidiary title insurance agent when the company directly issues a title insurance policy or contract under Section 2704.002.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.055 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.055. Promotional and Educational Activities Not Rebates

Sec. 2502.055.  PROMOTIONAL AND EDUCATIONAL ACTIVITIES NOT REBATES.  (a)  The activities described in this section are not rebates.  Nothing in this subchapter prohibits a title insurance company or a title insurance agent from:(1)  engaging in promotional and educational activities that are not conditioned on the referral of title insurance business and not prohibited by Subchapter B, Chapter 541;(2)  purchasing advertising promoting the title insurance company or the title insurance agent at market rates from any person in any publication, event, or media;(3)  delivering to a party in the transaction or the party's representative legal documents or funds which are directly or indirectly related to a transaction closed by the title insurance company or title insurance agent;(4)  participating in an association of attorneys, builders, developers, realtors, or other real estate practitioners provided that the level of such participation does not exceed normal participation of a volunteer member of the association and is not activity that would ordinarily be performed by paid staff of an association; or(5)  providing continuing education courses at market rates, regardless of whether participants receive credit hours.(b)  "Market rate" means the price at which a seller, under no obligation or duress to sell, is willing to accept and a buyer, under no obligation or duress to buy, is willing to pay in an arms-length transaction.  The market rate is determined by comparing the rights or items purchased or sold to similar rights or items that have been recently purchased by others or sold to others, including others not in the title insurance business.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2005, 79th Leg., Ch. 631 (H.B. 2565), Sec. 7, eff. September 1, 2005.Acts 2011, 82nd Leg., R.S., Ch. 1011 (H.B. 2408), Sec. 2, eff. September 1, 2011.|
TX Ins Code § 2502.056 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.056. Monetary Forfeiture

Sec. 2502.056.  MONETARY FORFEITURE.  (a)  A person who pays or receives a commission, rebate, discount, or other thing of value for soliciting or referring title insurance business in violation of Section 2502.051 is engaging in the unauthorized business of insurance.(b)  After notice and opportunity for hearing, a person who makes or receives a payment described by Subsection (a) is liable for a monetary forfeiture in an amount not less than the value of or more than three times the value of the payment.(c)  A monetary forfeiture under Subsection (b) is in addition to any other penalty provided by law.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2502.057 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle A - General Provisions|Chapter 2502 - Prohibited Conduct|Subchapter B. Rebates and Discounts|Section 2502.057. Certain Compensatory Payments Related to Certain Electric Energy Projects Permitted

Sec. 2502.057.  CERTAIN COMPENSATORY PAYMENTS RELATED TO CERTAIN ELECTRIC ENERGY PROJECTS PERMITTED.  (a)  This section applies with respect to a utility project that is:(1)  designed to produce, generate, transmit, distribute, sell, or furnish electric energy; and(2)  valued on completion at more than $25 million.(b)  A payment for furnishing title evidence for the issuance of a title insurance policy related to a project described by Subsection (a) may be:(1)  a flat fee or fee calculated on an hourly basis that:(A)  is payable on the date the title evidence is furnished; and(B)  does not exceed $25,000; or(2)  a portion of the title insurance premium:(A)  based on the percentage established by the commissioner for payment by a title insurance company, title insurance agent, or direct operation for services performed by another title insurance company, title insurance agent, or direct operation; and(B)  payable on the date of the issuance of the policy for which the evidence is furnished.(c)  The payment must be:(1)  made by the proposed insured to the title insurance company, title insurance agent, or direct operation that furnishes the title evidence; and(2)  credited against the title insurance premium charged for the issuance of the title insurance policy for which the evidence is furnished.(d)  Nothing in this section may be construed to allow the payment of an amount in violation of the premium rates promulgated or the division of premium established by the commissioner.(e)  This section does not apply to a payment to a reinsurer for the assumption of reinsurance described by Subchapter G, Chapter 2551.|Added by Acts 2013, 83rd Leg., R.S., Ch. 1056 (H.B. 3106), Sec. 1, eff. September 1, 2013.|
TX Ins Code § 2551.001 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter A. General Provisions|Section 2551.001. Applicability of Title and Other Law

Sec. 2551.001.  APPLICABILITY OF TITLE AND OTHER LAW.  (a)  Except as provided by Subsection (c) and unless the business of title insurance or title insurance companies are expressly mentioned, the provisions of this code other than this title do not apply to:(1)  a corporation incorporated or engaging in business exclusively under this title;  or(2)  any title insurance business engaged in by a corporation created under:(A)  Subdivision 57, Article 1302, Revised Statutes;(B)  Chapter 861;  or(C)  any other law.(b)  A law enacted after September 7, 1951, does not apply to a title insurance company or title insurance business described by Subsection (a) unless the law expressly states that it applies.(c)  To the extent applicable, the following provisions of this code apply to a title insurance company:(1)  Articles 1.09-1 and 21.47;(2)  Subsection (b), Article 1.04D;(3)  Chapters 33, 82, 83, 84, 86, 102, 261, 281, 401, 402, 493, 494, 541, 547, 555, 701, 801, 802, 824, 828, 1805, and 2204;(4)  Chapter 31, other than Section 31.005;(5)  Chapter 32, other than Section 32.022(b);(6)  Chapter 36, other than Sections 36.003, 36.004, and 36.101-36.106;(7)  Subchapter A, Chapter 38;(8)  Subchapters A-G, Chapter 101;(9)  Chapter 982, other than Sections 982.003, 982.051, 982.101, 982.105, 982.106(b), 982.109, and 982.113; and(10)  Sections 37.052, 39.001, 39.002, 81.001, 81.002, 81.004, 201.004, 201.005, 201.051, 201.055, 403.001, 403.051, 403.101, 521.002-521.004, 805.021, 822.001, 822.051, 822.052(1), (2), and (3), 822.053, 822.057, except Subsection (a)(4), 822.058, 822.059, 822.060, 822.155, 822.157, 822.158, except Subsection (a)(5), 841.004, 841.251, 841.252(a)-(c), and 4001.103.(d)  This title governs in any conflict between a provision listed by Subsection (c) and a provision of this title.(e)  This title does not regulate the practice of law by an attorney.  The actions of an attorney in examining title, in examining records regarding an interest insured under Chapter 2751, or in closing a real property or personal property transaction, regardless of whether a title insurance policy is issued, does not constitute the business of title insurance, unless the attorney elects to be licensed as an escrow officer.(f)  Subsection (e) does not prohibit the commissioner from promulgating a premium for title insurance.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 4, eff. September 1, 2007.Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2I.001, eff. April 1, 2009.Acts 2009, 81st Leg., R.S., Ch. 447 (H.B. 2353), Sec. 1, eff. September 1, 2009.|
TX Ins Code § 2551.002 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter A. General Provisions|Section 2551.002. Applicability of Law Governing Corporations

Sec. 2551.002.  APPLICABILITY OF LAW GOVERNING CORPORATIONS.  A title insurance company is subject to the Texas Business Corporation Act, the Texas Miscellaneous Corporation Laws Act (Article 1302-1.01 et seq., Vernon's Texas Civil Statutes), and any other law of this state that governs corporations in general, to the extent those laws are not inconsistent with this title.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2551.003 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter A. General Provisions|Section 2551.003. Rulemaking; Authority of Department and Commissioner

Sec. 2551.003.  RULEMAKING;  AUTHORITY OF DEPARTMENT AND COMMISSIONER.  (a)  The commissioner may adopt and enforce rules:(1)  that prescribe underwriting standards and practices on which a title insurance contract must be issued;(2)  that define risks that may not be assumed under a title insurance contract, including risks that may not be assumed because of the insolvency of the parties to the transaction;  and(3)  that the commissioner determines are necessary to accomplish the purposes of this title.(b)  With respect to a company operating under this title that engages in the kinds of business described by Section 2551.051(b)(1) or (2) in a manner that might subject the company to another regulatory statute of this state, all examination and regulation shall be exercised by the department rather than any other state agency named in the other regulatory statute, as long as the corporation engages in the business of title insurance.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2551.051 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.051. Formation; General Purposes and Powers

Sec. 2551.051.  FORMATION;  GENERAL PURPOSES AND POWERS.  (a)  A private corporation may be created and licensed under this title for the following purposes:(1)  to compile and own or lease, or to acquire and own or lease, records or abstracts of title to real property or interests in real property in this state or other jurisdictions, to insure titles to that real property or interests in that real property, and to indemnify the owners of that real property, or the holders of interests in or liens on that real property, against loss or damage resulting from an encumbrance on or defect in the title to the real property or interests in the real property;(2)  in transactions in which title insurance is to be or is being issued, to supervise or approve the signing of legal instruments affecting the interest to be insured, disbursement of money, prorations, delivery of legal instruments, closing of transactions, or issuance of commitments for title insurance specifying the requirements for title insurance and the defects in title necessary to be cured or corrected; and(3)  to issue personal property title insurance under Chapter 2751.(b)  A corporation described by Subsection (a) may exercise any of the following powers by including the power in the corporation's charter:(1)  to make and sell abstracts of title in any county of this state or another state;(2)  to accumulate and lend money and to purchase, sell or deal in notes, bonds, and securities, but without banking privileges;(3)  to act as trustee under a lawful trust committed to the corporation by contract or will or by appointment by a court as trustee, receiver, or guardian;  and(4)  to act as executor or guardian under the terms of a will or as an administrator of a decedent's estate under the appointment of a court.(c)  Notwithstanding any other provision of this section, a corporation described by Subsection (a) is not authorized to practice law, as that term is defined by the courts of this state.  A corporation described by Subsection (a) is not authorized to prepare a legal instrument described by Subsection (a)(2).|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 5, eff. September 1, 2007.|
TX Ins Code § 2551.052 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.052. Name

Sec. 2551.052.  NAME.  (a)  The name of a corporation chartered or operating under this title may contain the words "Title and Trust Company."(b)  The name of a corporation chartered or operating under this title may not contain the word "Trust" alone.  If the word "Trust" appears in the corporation's letterhead or literature, the corporation shall include the words "Without Banking Privileges."|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2551.053 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.053. Stock and Surplus Requirements

Sec. 2551.053.  STOCK AND SURPLUS REQUIREMENTS.  (a)  A title insurance company must have a paid-up capital of at least $1 million and a surplus of at least $1 million.(b)  The capital stock and minimum surplus requirements of a title insurance company must be maintained intact over and above all outstanding liabilities, except contingent liabilities on title insurance policies.(c)  If a title insurance company suffers the impairment of its capital stock or minimum surplus requirements, the company shall immediately report the impairment to the department.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.007, eff. September 1, 2017.|
TX Ins Code § 2551.054 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.054. Purchase of Own Stock

Sec. 2551.054.  PURCHASE OF OWN STOCK.  (a)  Subject to Section 2551.053(a) and the Texas Business Corporation Act, a title insurance company may purchase its own shares of stock.  A purchase of its own shares is not considered an investment and does not constitute a violation of a provision of this code relating to admissible investments.(b)  A title insurance company that purchases its own shares must, not later than the 10th day after the date of purchase, file with the commissioner a statement listing:(1)  the name of each shareholder from whom the shares have been purchased;  and(2)  the amount paid for the shares.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2551.055 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.055. Charter of Corporation Engaging in Business of Title Insurance

Sec. 2551.055.  CHARTER OF CORPORATION ENGAGING IN BUSINESS OF TITLE INSURANCE.  (a)  The incorporators of a corporation engaging in the business of title insurance and incorporated under this title, Subdivision 57, Article 1302, Revised Statutes, Chapter 40, Acts of the 41st Legislature, Regular Session, 1929 (Article 1302a, Vernon's Texas Civil Statutes), or any other law shall file the corporation's original charter only with the department and shall certify the charter only to the department.(b)  Only the department may collect from a company described by this section any filing fees required by law.(c)  A corporation described by this section is not subject to another law to the extent that the law conflicts with this section.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2551.056 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle B - Organization of Title Insurance Companies|Chapter 2551 - Title Insurers|Subchapter B. Formation|Section 2551.056. Regulation of Certain Corporations

Sec. 2551.056.  REGULATION OF CERTAIN CORPORATIONS.  (a)  A corporation incorporated under Subdivision 57, Article 1302, Revised Statutes, before February 27, 1929, and engaging in business in this state on February 27, 1929:(1)  may continue to engage in business;(2)  is subject to this title;  and(3)  shall comply with the requirements of this title regarding investments and deposits.(b)  A shareholder in a company acting under this title is not liable in the event of default in the payment of any debt or liability of the company beyond the shareholder's subscription for stock.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|