reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 552 - Illegal Pricing Practices › Section 552.003. Charging Different Prices; Offense

Sec. 552.003.  CHARGING DIFFERENT PRICES;  OFFENSE.  (a)  A person commits an offense if:
(1)  the person knowingly or intentionally charges two different prices for providing the same product or service;  and
(2)  the higher price charged is based on the fact that an insurer will pay all or part of the price of the product or service.
(b)  An offense under this section is a Class B misdemeanor.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 553 - Enforcement of Insurance Policies Regarding Holocaust Victims › Section 553.001. Definitions

Sec. 553.001.  DEFINITIONS.  In this chapter:
(1)  "Holocaust victim" means a person who was killed or injured, or who lost financial assets or other property, as the result of discriminatory laws, policies, or actions directed against any discrete group of which the person was a member, during the period of 1920 to 1945, inclusive, in Germany, areas occupied by Germany, or countries allied with Germany.
(2)  "Insurance policy" includes:
(A)  a life insurance policy, an annuity, a property insurance policy, a casualty insurance policy, and a liability insurance policy;  and
(B)  reinsurance on a risk covered under a policy described by Paragraph (A).
(3)  "Insurer" means an insurance company or other entity engaged in the business of insurance or reinsurance in this state.  The term includes:
(A)  a capital stock company, a mutual company, or a Lloyd's plan;  and
(B)  any parent, subsidiary, or affiliated company, at least 50 percent of the stock of which is in common ownership with an insurer engaged in the business of insurance in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 553 - Enforcement of Insurance Policies Regarding Holocaust Victims › Section 553.002. Suspension of Limitations Period

Sec. 553.002.  SUSPENSION OF LIMITATIONS PERIOD.  (a)  Notwithstanding any other law, a Holocaust victim, or the heir, assignee, beneficiary, or successor of a Holocaust victim, who resides in this state and has a claim arising out of an insurance policy purchased or in effect in Europe before 1946 that was delivered, issued for delivery, or renewed by an insurer may bring an action in this state against an insurer to recover on that claim.
(b)  An action brought under this section before December 31, 2012, may not be dismissed for failure to comply with any applicable limitations period.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 553 - Enforcement of Insurance Policies Regarding Holocaust Victims › Section 553.003. Violation by Insurer

Sec. 553.003.  VIOLATION BY INSURER.  An insurer violates this chapter if the insurer fails to comply with a claim brought under this chapter by:
(1)  denying the claim on the grounds that the claim is not timely;  or
(2)  asserting a statute of limitations defense in an action brought under Section 553.002.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 553 - Enforcement of Insurance Policies Regarding Holocaust Victims › Section 553.004. Examination; Enforcement

Sec. 553.004.  EXAMINATION;  ENFORCEMENT.  (a)  If the commissioner considers it necessary, the commissioner may initiate an examination of an insurer under Sections 401.051, 401.052, and 401.054-401.062.
(b)  If the commissioner believes that an insurer is violating or has violated this chapter, the commissioner may:
(1)  impose a sanction under Chapter 82;
(2)  issue a cease and desist order under Chapter 83;
(3)  assess an administrative penalty under Chapter 84;  or
(4)  refer the matter to the attorney general for appropriate enforcement.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2D.014, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 554 - Burden of Proof and Pleading › Section 554.001. Applicability of Chapter

Sec. 554.001.  APPLICABILITY OF CHAPTER.  This chapter applies to each insurer or health maintenance organization engaged in the business of insurance or the business of a health maintenance organization in this state, regardless of form and however organized, including:
(1)  a stock life, health, or accident insurance company;
(2)  a mutual life, health, or accident insurance company;
(3)  a stock fire or casualty insurance company;
(4)  a mutual fire or casualty insurance company;
(5)  a Mexican casualty insurance company;
(6)  a Lloyd's plan;
(7)  a reciprocal or interinsurance exchange;
(8)  a fraternal benefit society;
(9)  a title insurance company;
(10)  a stipulated premium company;
(11)  a nonprofit legal services corporation;
(12)  a statewide mutual assessment company;
(13)  a local mutual aid association;
(14)  a local mutual burial association;
(15)  an association exempt under Section 887.102;
(16)  a nonprofit hospital, medical, or dental service corporation, including a corporation subject to Chapter 842;
(17)  a county mutual insurance company;
(18)  a farm mutual insurance company; and
(19)  an insurer or health maintenance organization engaged in the business of insurance or the business of a health maintenance organization in this state that does not hold a certificate of authority issued by the department or is not otherwise authorized to engage in business in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.004, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 554 - Burden of Proof and Pleading › Section 554.002. Burden of Proof and Pleading

Sec. 554.002.  BURDEN OF PROOF AND PLEADING.  In a suit to recover under an insurance or health maintenance organization contract, the insurer or health maintenance organization has the burden of proof as to any avoidance or affirmative defense that the Texas Rules of Civil Procedure require to be affirmatively pleaded.  Language of exclusion in the contract or an exception to coverage claimed by the insurer or health maintenance organization constitutes an avoidance or an affirmative defense.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 555 - Failure to Satisfy Judgment › Section 555.001. Applicability of Chapter

Sec. 555.001.  APPLICABILITY OF CHAPTER.  This chapter does not apply to an insurer subject to Chapter 841.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 555 - Failure to Satisfy Judgment › Section 555.002. Revocation of Certificate of Authority

Sec. 555.002.  REVOCATION OF CERTIFICATE OF AUTHORITY.  If an execution issued on a final judgment rendered against an insurer is not satisfied and discharged before the 31st day after the date of notice of the execution's issuance, the insurer's certificate of authority shall be revoked, and the insurer may not engage in the business of insurance in this state until the execution is satisfied.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter A. General Provisions › Section 556.001. Definitions

Sec. 556.001.  DEFINITIONS.  In this chapter:
(1)  "Affiliate" means a person who, directly or indirectly or through one or more intermediaries, controls or is controlled by another person or is under common control with another person.
(2)  "Depository institution" has the meaning assigned by Section 4001.003.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter A. General Provisions › Section 556.002. Rules

Sec. 556.002.  RULES.  The commissioner may adopt reasonable rules to comply with federal law applicable to the sale of insurance and for the implementation and administration of this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter B. Unfair Methods or Practices › Section 556.051. Unfair Method of Competition or Unfair Practice: Tying

Sec. 556.051.  UNFAIR METHOD OF COMPETITION OR UNFAIR PRACTICE:  TYING.  (a)  A depository institution engages in an unfair method of competition or an unfair practice in the sale of insurance by the depository institution if the depository institution:
(1)  is an agent and, as a condition of extending or renewing credit, leasing or selling property, or furnishing services, requires the purchase of insurance from the depository institution or a subsidiary or affiliate of the depository institution, or from or through a particular agent, insurer, or any other person or entity;
(2)  conditions the terms of credit or the sale or lease of property on acquisition of insurance from or through the depository institution, a subsidiary or affiliate of the depository institution, or any other particular person or entity;
(3)  rejects a required policy solely because the policy has been issued or underwritten by a person or entity that is not associated with the depository institution;  or
(4)  imposes a requirement on an agent or broker who is not associated with the depository institution that is not imposed on an agent or broker who is associated with the depository institution or a subsidiary or affiliate of the depository institution.
(b)  This section does not prevent a person who lends money or extends credit from placing insurance on property if the mortgagor, borrower, or purchaser fails to provide required insurance in accordance with the terms of the loan or credit document.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter B. Unfair Methods or Practices › Section 556.052. Unfair Method of Competition or Unfair Practice: Failure to Disclose

Sec. 556.052.  UNFAIR METHOD OF COMPETITION OR UNFAIR PRACTICE:  FAILURE TO DISCLOSE.  A depository institution engages in an unfair method of competition or an unfair practice in the sale of insurance by the depository institution if, on the premises of the depository institution or in connection with a product offering of the depository institution, the depository institution sells or solicits the purchase of insurance or a person sells or solicits the purchase of insurance recommended or sponsored by the depository institution and the depository institution or person fails to clearly disclose in all promotional materials relating to an insurance product distributed to customers and potential customers that:
(1)  an insurance product sold through or in the depository institution or a subsidiary or affiliate of the depository institution is not insured by the Federal Deposit Insurance Corporation;
(2)  the insurance product is not issued, guaranteed, or underwritten by the depository institution or the Federal Deposit Insurance Corporation;  and
(3)  the insurance product involves investment risk, if appropriate, including potential loss of principal.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter C. Regulation of Practices › Section 556.101. Prohibition on Certain Referrals or Solicitations to Purchase Insurance

Sec. 556.101.  PROHIBITION ON CERTAIN REFERRALS OR SOLICITATIONS TO PURCHASE INSURANCE.  (a)  An individual who is an employee or agent of a depository institution or a subsidiary or affiliate of a depository institution may not directly or indirectly make a referral related to insurance to, or solicit the purchase of any insurance by, a customer knowing that the customer has applied for a loan or other extension of credit from a financial institution, before:
(1)  the customer receives a written commitment relating to that loan or extension of credit;  or
(2)  if a written commitment has not been or will not be issued in connection with the loan or extension of credit, the customer receives notification of approval of that loan or extension of credit by the financial institution and the financial institution creates a written record of the approval.
(b)  This section does not prohibit a depository institution from:
(1)  informing a customer that insurance is required in connection with a loan;
(2)  contacting a person in the course of a direct or mass mailing to a group of persons in a manner that is not related to the person's loan application or credit decision;  or
(3)  selling credit life, credit disability, credit property, or involuntary unemployment insurance that is:
(A)  specifically authorized by this code;
(B)  approved for sale in this state;  and
(C)  sold in connection with a credit transaction.
(c)  This section does not apply to an insurance policy described by Section 556.151.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter C. Regulation of Practices › Section 556.102. Insurance Sale With Loan Transaction

Sec. 556.102.  INSURANCE SALE WITH LOAN TRANSACTION.  (a)  If insurance is offered or sold to a depository institution's customer in connection with a loan transaction by the depository institution, the insurance salesperson involved in that insurance transaction may not be involved in that loan transaction and may not be the person making that loan.
(b)  This section does not apply to:
(1)  a depository institution that has $40 million or less in total assets, as reported in the most recent Consolidated Report of Condition and Income by the Federal Financial Institutions Examination Council or any successor report required by federal or state law;  or
(2)  a credit life, credit disability, credit property, or involuntary unemployment insurance product that is:
(A)  specifically authorized by this code;
(B)  approved for sale in this state;  and
(C)  sold in connection with a credit transaction.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter C. Regulation of Practices › Section 556.103. Designation of Place of Insurance Activities

Sec. 556.103.  DESIGNATION OF PLACE OF INSURANCE ACTIVITIES.  (a)  The place where a depository institution sells or solicits the purchase of insurance or the place on the premises of a depository institution where insurance is sold or solicited for purchase shall be clearly and conspicuously indicated by signs so that the public can readily distinguish the sale or solicitation as separate from the lending and deposit-taking activities of the depository institution.
(b)  The commissioner may grant a waiver from the requirements of this section to a person who files a written request that:
(1)  demonstrates that, due to the size of the physical premises of the person, compliance with the requirements is not possible;  and
(2)  identifies other steps that will be taken to minimize customer confusion.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter C. Regulation of Practices › Section 556.104. Use of Customer Information

Sec. 556.104.  USE OF CUSTOMER INFORMATION.  (a)  In this section:
(1)  "Customer" means a person with an investment, security, deposit, trust, or credit relationship with a financial institution.
(2)  "Nonpublic customer information" means information relating to an individual that is derived from a bank record, including information concerning insurance premiums, the terms and conditions of insurance coverage, insurance expirations, insurance claims, and insurance history of the individual.  The term does not include a customer's name, address, or telephone number.
(b)  A person may not use nonpublic customer information for the purpose of selling or soliciting the purchase of insurance, or provide nonpublic customer information to a third party for the purpose of another's selling or soliciting the purchase of insurance, unless:
(1)  it is clearly and conspicuously disclosed that the nonpublic customer information may be used for that purpose;  and
(2)  the customer has been provided an opportunity to object before the time the information is used.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter D. Disclosures › Section 556.151. Applicability of Subchapter

Sec. 556.151.  APPLICABILITY OF SUBCHAPTER.  This subchapter does not apply to a credit life, credit accident and health, credit property, or credit involuntary unemployment insurance policy that is:
(1)  specifically authorized by this code;
(2)  approved for sale in this state;  and
(3)  sold in connection with a credit transaction.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter D. Disclosures › Section 556.152. Promotional Materials Disclosure

Sec. 556.152.  PROMOTIONAL MATERIALS DISCLOSURE.  (a)  This section applies to each agent that is a depository institution or that, on the premises of a depository institution or in connection with a product offering of a depository institution, sells or solicits the purchase of insurance recommended or sponsored by the depository institution.
(b)  Promotional materials relating to an insurance product distributed to a customer or potential customer must clearly disclose that an insurance product sold through an agent affiliated with a depository institution:
(1)  is not insured by the Federal Deposit Insurance Corporation;
(2)  is not issued, guaranteed, or underwritten by the depository institution or the Federal Deposit Insurance Corporation;  and
(3)  involves investment risk, if appropriate, including potential loss of principal.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter D. Disclosures › Section 556.153. Disclosure at Time of Loan Application

Sec. 556.153.  DISCLOSURE AT TIME OF LOAN APPLICATION.  (a)  At the time a loan application is made, a depository institution shall provide to the customer a written disclosure as required by this section and Section 556.154.
(b)  The disclosure must be separate from any loan application or loan document.
(c)  The depository institution employee who presents the disclosure and the customer shall sign and date the disclosure.
(d)  The depository institution shall maintain one copy of the disclosure in the loan file and shall provide one copy to the customer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 556 - Unfair Methods of Competition and Unfair Practices by Financial Institutions › Subchapter D. Disclosures › Section 556.154. Form of Disclosure

Sec. 556.154.  FORM OF DISCLOSURE.  (a)  The disclosure required by Section 556.153 must be in substantially the following form:
"CUSTOMER DISCLOSURE
"You have applied for a loan with the depository institution.  As permitted by Title 4, Finance Code, the depository institution is requiring that collateral used to secure the loan be insured to cover the amount of the loan to the extent insurance is available on the property to be insured, against the usual and customary casualty losses.
"You have the right to provide this insurance either through existing policies already owned or controlled by you or by obtaining the insurance through any insurance agent or insurer authorized to engage in business in Texas.
"The depository institution, through its own insurance agency, can also make this insurance available to you.  However, federal and state laws provide that the depository institution cannot require you to obtain insurance through the depository institution, its subsidiary, an affiliate, or any particular unaffiliated third party, either as a condition to obtaining this credit or to obtain special terms or consideration.
"Insurance products sold through or in the depository institution or its affiliate or subsidiary are not insured by the Federal Deposit Insurance Corporation and are not issued, guaranteed, or underwritten by the depository institution or the Federal Deposit Insurance Corporation.
"You are not required or obligated to purchase insurance from the depository institution or any subsidiary, affiliate, or particular unaffiliated third party as a condition to obtaining your loan, and your decision as to insurance agents will not affect your credit terms in any way.
______________________
______________________
Customer
Date
______________________
Employee of Depository Institution"
(b)  The commissioner may amend the disclosure form as necessary to comply with federal or state law.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.001. Definitions

Sec. 557.001.  DEFINITIONS.  In this subchapter:
(1)  "Lender" means a person holding a mortgage, lien, deed of trust, or other security interest in property.
(2)  "Residential real property" means:
(A)  a single-family house;
(B)  a duplex, triplex, or quadraplex;  or
(C)  a unit in a multi-unit residential structure in which title to an individual unit is transferred to the owner of the unit under a condominium or cooperative system.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.002. Notification by Lender to Insured Concerning Insurance Proceeds

Sec. 557.002.  NOTIFICATION BY LENDER TO INSURED CONCERNING INSURANCE PROCEEDS.  (a)  If a claim under an insurance policy for damage to residential real property is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment pending completion of all or part of the repairs to the property, the lender shall notify the insured of each requirement with which the insured must comply for the lender to release the insurance proceeds.
(b)  The notice required under this section must be provided not later than the 10th day after the date the lender receives payment of the insurance proceeds.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.003. Lender's Release or Refusal to Release Insurance Proceeds

Sec. 557.003.  LENDER'S RELEASE OR REFUSAL TO RELEASE INSURANCE PROCEEDS.  Not later than the 10th day after the date a lender receives from the insured a request for release of all or part of the insurance proceeds held by the lender, the lender shall:
(1)  if the lender has received sufficient evidence of the insured's compliance with the requirements specified by the lender under Section 557.002 for release of the proceeds, release to the insured, as requested, all or part of the proceeds;  or
(2)  provide notice to the insured that explains specifically:
(A)  the reason for the lender's refusal to release the proceeds to the insured;  and
(B)  each requirement with which the insured must comply for the lender to release the proceeds.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.004. Payment of Interest; Rate

Sec. 557.004.  PAYMENT OF INTEREST;  RATE.  A lender who fails to provide notice as required by Section 557.002 or 557.003 or to release insurance proceeds as required by Section 557.003 shall pay to the insured interest at the rate of 10 percent a year on the proceeds held by the lender.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.005. Accrual of Interest

Sec. 557.005.  ACCRUAL OF INTEREST.  (a)  If a lender fails to provide notice as required by Section 557.002 or 557.003, interest begins to accrue on the date the lender received the insurance proceeds.
(b)  If a lender fails to release insurance proceeds as required by Section 557.003, interest begins to accrue on the date the lender receives sufficient evidence of the insured's compliance with the requirements specified by the lender under Section 557.002 or 557.003 for release of the proceeds.
(c)  Interest stops accruing on the date the lender complies with Section 557.002 or 557.003, as applicable.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter A. Insurance Proceeds Held by Lender Pending Repair of Residential Real Property › Section 557.006. Interest Not Required on Insurance Proceeds Applied to Reduce Note

Sec. 557.006.  INTEREST NOT REQUIRED ON INSURANCE PROCEEDS APPLIED TO REDUCE NOTE.  A lender is not required to pay interest on insurance proceeds applied, in accordance with the terms and conditions of a deed of trust or other security agreement, to reduce a note.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter B. Lienholder Approval of Insurance Claim Payment Relating to Personal Property › Section 557.051. Lienholder Approval of Payment

Sec. 557.051.  LIENHOLDER APPROVAL OF PAYMENT.  If payment of an insurance claim relating to personal property requires the endorsement of a check or draft by a holder of a lien on the property or otherwise requires approval of the lienholder, not later than the 14th business day after the date the lienholder receives a request for the endorsement or other approval, the lienholder shall provide:
(1)  the endorsement or approval;  or
(2)  a written statement of the reason for denial of the endorsement or approval to the person who requested the endorsement or approval.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 557 - Insured Property Subject to Security Interest › Subchapter B. Lienholder Approval of Insurance Claim Payment Relating to Personal Property › Section 557.052. Civil Penalty

Sec. 557.052.  CIVIL PENALTY.  (a)  A lienholder who violates Section 557.051 is liable for a civil penalty not to exceed $500 for each violation.
(b)  The attorney general may bring an action to collect a civil penalty under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 558 - Refund of Unearned Premium › Section 558.001. Definition

Sec. 558.001.  DEFINITION.  In this chapter, "insurer" means an insurance company or other entity authorized to engage in the business of insurance in this state.  The term includes:
(1)  a stock life, health, or accident insurance company;
(2)  a mutual life, health, or accident insurance company;
(3)  a stock fire or casualty insurance company;
(4)  a mutual fire or casualty insurance company;
(5)  a Mexican casualty insurance company;
(6)  a farm mutual insurance company;
(7)  a county mutual insurance company;
(8)  a Lloyd's plan;
(9)  a reciprocal or insurance exchange;
(10)  a fraternal benefit society;
(11)  a stipulated premium company;
(12)  a nonprofit legal services corporation;
(13)  a statewide mutual assessment company;
(14)  a local mutual aid association;
(15)  a local mutual burial association;
(16)  an association exempt under Section 887.102;
(17)  a nonprofit hospital, medical, or dental service corporation, including a corporation subject to Chapter 842;
(18)  a risk retention group;
(19)  a purchasing group;
(20)  an eligible surplus lines insurer; and
(21)  a guaranty association operating under Chapter 462 or 463.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2D.015, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 558 - Refund of Unearned Premium › Section 558.002. Applicability of Chapter; Refund of Unearned Premium

Sec. 558.002.  APPLICABILITY OF CHAPTER;  REFUND OF UNEARNED PREMIUM.  (a)  This chapter applies to an insurer that issues an insurance policy that requires the insurer to maintain an unearned premium reserve for the portion of the written policy premium applicable to the unexpired or unused part of the policy period for which the premium has been paid.
(b)  An insurer shall promptly refund the appropriate portion of any unearned premium to the policyholder if the policy:
(1)  has a remaining unearned premium reserve;  and
(2)  is canceled or terminated by the insured or the insurer before the end of its term.
(c)  A guaranty association shall promptly refund any unearned premium as described by Subchapter E, Chapter 462, or Sections 463.003(9) and 463.259.
(d)  An insurer shall refund the appropriate portion of any unearned premium to the policyholder not later than the 15th business day after the effective date of cancellation or termination of a policy of personal automobile or residential property insurance, as those terms are defined by Section 2301.051.
(e)  Notwithstanding Subsection (d), a guaranty association shall refund any unearned premium as described by Subchapter E, Chapter 462, not later than the 30th business day after the date the guaranty association receives any necessary and accurate financial information, including supporting accounting information, required to determine unearned premium under a policy of personal automobile or residential property insurance, as those terms are defined by Section 2301.051.
(f)  For purposes of this section, "business day" means a day other than a Saturday, Sunday, or holiday recognized by this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2D.016, eff. April 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 94 (S.B. 698), Sec. 1, eff. May 18, 2013.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 558 - Refund of Unearned Premium › Section 558.003. Rules and Guidelines

Sec. 558.003.  RULES AND GUIDELINES.  The commissioner shall:
(1)  adopt rules necessary to implement this chapter;  and
(2)  establish appropriate guidelines to determine the portion of an unearned premium that must be refunded to a policyholder under this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 558 - Refund of Unearned Premium › Section 558.004. Effect on Insurance Premium Finance Company

Sec. 558.004.  EFFECT ON INSURANCE PREMIUM FINANCE COMPANY.  This chapter does not affect the obligation of an insurer to pay an unearned premium to an insurance premium finance company in accordance with Section 651.162.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter A. General Provisions › Section 559.002. Applicability of Chapter

Sec. 559.002.  APPLICABILITY OF CHAPTER.  This chapter applies to an insurer that writes personal insurance coverage and uses credit information or credit reports for the underwriting or rating of that coverage.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter A. General Provisions › Section 559.003. Information Provided to Public

Sec. 559.003.  INFORMATION PROVIDED TO PUBLIC.  The department shall:
(1)  update insurer profiles maintained on the department's Internet website to provide information to consumers stating whether or not an insurer uses credit scoring; and
(2)  post the report required under former Section 15, Article 21.49-2U, on the department's Internet website.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter A. General Provisions › Section 559.004. Rules

Sec. 559.004.  RULES.  (a)  The commissioner may adopt rules necessary to implement this chapter.
(b)  The commissioner shall adopt rules that prescribe the allowable differences in rates charged by insurers due solely to the difference in credit scores.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter B. Use of Credit Scoring and Credit Information › Section 559.051. Permissible Use of Credit Scoring

Sec. 559.051.  PERMISSIBLE USE OF CREDIT SCORING.  An insurer may use credit scoring, except for factors that constitute unfair discrimination, to develop rates, rating classifications, or underwriting criteria regarding lines of insurance subject to this chapter.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter B. Use of Credit Scoring and Credit Information › Section 559.052. Prohibited Use of Credit Information

Sec. 559.052.  PROHIBITED USE OF CREDIT INFORMATION.  (a)  An insurer may not:
(1)  use a credit score that is computed using factors that constitute unfair discrimination;
(2)  deny, cancel, or nonrenew a policy of personal insurance solely on the basis of credit information without considering any other applicable underwriting factor independent of credit information; or
(3)  take an action that results in an adverse effect against a consumer because the consumer does not have a credit card account without considering any other applicable factor independent of credit information.
(b)  An insurer may not consider an absence of credit information or an inability to determine credit information for an applicant for insurance coverage or for an insured as a factor in underwriting or rating an insurance policy unless the insurer:
(1)  has statistical, actuarial, or reasonable underwriting information that:
(A)  is reasonably related to actual or anticipated loss experience; and
(B)  shows that the absence of credit information could result in actual or anticipated loss differences;
(2)  treats the consumer as if the applicant for insurance coverage or insured had neutral credit information, as defined by the insurer; or
(3)  excludes the use of credit information as a factor in underwriting and uses only other underwriting criteria.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter B. Use of Credit Scoring and Credit Information › Section 559.053. Disclosure to Consumer Regarding Use of Credit Scoring

Sec. 559.053.  DISCLOSURE TO CONSUMER REGARDING USE OF CREDIT SCORING.  (a)  An insurer that uses credit scoring in the underwriting or rating of insurance subject to this chapter shall disclose to each applicant for insurance coverage that the applicant's credit report may be used in the underwriting or rating of the applicant's policy.  The disclosure must be provided at the time of application by the insurer or agent and may be given orally, in writing, or electronically.
(b)  If a policy is issued to the applicant for insurance coverage, an insurer or agent is not required to make the disclosure required under Subsection (a) on any subsequent renewal of the coverage.
(c)  An insurer or its agent shall disclose to its customers, on a form adopted by the commissioner, whether credit information will be obtained on an applicant for insurance coverage or insured or on any other member or members of the applicant's or insured's household and used as part of the insurance credit scoring process.
(d)  If credit information is obtained or used on an applicant for insurance coverage or insured, or on any member of the applicant's or insured's household, the insurer shall disclose to the applicant or insured the name of each person on whom credit information was obtained or used and how each person's credit information was used to underwrite or rate the policy.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter B. Use of Credit Scoring and Credit Information › Section 559.056. Indemnification of Agent

Sec. 559.056.  INDEMNIFICATION OF AGENT.  (a)  An insurer shall indemnify, defend, and hold its agent harmless from and against all liability, fees, and costs that arise out of or relate to the actions, errors, or omissions of an agent who obtains or uses credit information or credit scores for the insurer if the agent:
(1)  follows the instructions of or procedures established by the insurer; and
(2)  complies with any applicable law or rule.
(b)  This section may not be construed to establish a cause of action that does not exist in the absence of this section.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter B. Use of Credit Scoring and Credit Information › Section 559.057. Sale of Policy Term Information by Consumer Reporting Agency Prohibited

Sec. 559.057.  SALE OF POLICY TERM INFORMATION BY CONSUMER REPORTING AGENCY PROHIBITED.  (a)  A consumer reporting agency may not provide or sell data or lists that include any information that, in whole or in part, was submitted in conjunction with an insurance inquiry about a consumer's credit information or a request for a credit report or credit score, including:
(1)  the expiration dates of an insurance policy or any other information that may identify periods during which a consumer's insurance may expire; and
(2)  the terms and conditions of the consumer's insurance coverage.
(b)  The restriction under Subsection (a) does not apply to data or lists that the consumer reporting agency provides to:
(1)  the agent from whom information was received;
(2)  the insurer on whose behalf the agent acted; or
(3)  that insurer's affiliates.
(c)  This section may not be construed to restrict the ability of an insurer to obtain a claims history report or a report regarding a motor vehicle.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter C. Computing Credit Score; Evaluating Credit Information › Section 559.101. Negative Factors

Sec. 559.101.  NEGATIVE FACTORS.  An insurer may not use any of the following as a negative factor in any credit scoring methodology or in reviewing credit information to underwrite or rate a policy of personal insurance:
(1)  a credit inquiry that is not initiated by the consumer;
(2)  an inquiry relating to insurance coverage, if so identified on a consumer's credit report; or
(3)  a collection account with a medical industry code, if so identified on the consumer's credit report.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter C. Computing Credit Score; Evaluating Credit Information › Section 559.102. Multiple Lender Inquiries

Sec. 559.102.  MULTIPLE LENDER INQUIRIES.  (a)  An insurer shall consider multiple lender inquiries made within 30 days of a prior inquiry, if coded by the consumer reporting agency on the consumer's credit report as from the home mortgage industry, as only one inquiry.
(b)  An insurer shall consider multiple lender inquiries made within 30 days of a prior inquiry, if coded by the consumer reporting agency on the consumer's credit report as from the motor vehicle lending industry, as only one inquiry.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 559 - Credit Scoring and Credit Information › Subchapter C. Computing Credit Score; Evaluating Credit Information › Section 559.103. Extraordinary Events

Sec. 559.103.  EXTRAORDINARY EVENTS.  (a)  Notwithstanding any other law, an insurer shall, on written request from an applicant for insurance coverage or an insured, provide reasonable exceptions to the insurer's rates, rating classifications, or underwriting rules for a consumer whose credit information has been directly influenced by:
(1)  a catastrophic illness or injury;
(2)  the death of a spouse, child, or parent;
(3)  temporary loss of employment;
(4)  divorce; or
(5)  identity theft.
(b)  In a situation described by Subsection (a), an insurer:
(1)  may consider only credit information not affected by the event; or
(2)  shall assign a neutral credit score.
(c)  An insurer may require reasonable written and independently verifiable documentation of the event and the effect of the event on the person's credit before granting an exception.  An insurer is not required to consider repeated events or events the insurer reconsidered previously as an extraordinary event.
(d)  An insurer may also consider granting an exception to an applicant for insurance coverage or an insured for an extraordinary event not listed in Subsection (a).
(e)  An insurer is not out of compliance with any law or rule relating to underwriting, rating, or rate filing as a result of granting an exception under this section.
Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005.