reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 82 - Sanctions › Subchapter B. Imposition of Sanctions › Section 82.055. Informal Disposition

Sec. 82.055.  INFORMAL DISPOSITION.  (a)  The commissioner may informally dispose of a matter under this subchapter by consent order, agreed settlement, stipulation, or default.
(b)  An informal disposition may include a provision under which the holder of the authorization agrees to a sanction under this subchapter with the express reservation that:
(1)  the holder does not admit a violation of this code or of a rule;  and
(2)  the existence of a violation is in dispute.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 82 - Sanctions › Subchapter B. Imposition of Sanctions › Section 82.056. Notice to Other States

Sec. 82.056.  NOTICE TO OTHER STATES.  The commissioner shall give notice of an action taken under this subchapter to the insurance commissioner or other similar officer of each state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter A. General Provisions › Section 83.001. Definitions

Sec. 83.001.  DEFINITIONS.  In this chapter:
(1)  "Authorized person" means an individual or entity described by Section 83.002.
(2)  "Emergency" means a sudden, urgent occurrence that requires immediate action.
(3)  "Unauthorized person" means an individual or a corporation, association, partnership, or other artificial person who directly or indirectly does an act of insurance business that is:
(A)  described by Section 101.051 or 101.052;  and
(B)  not done in accordance with specific authorization of law.
(4)  "Unfair act" means an unfair method of competition, an unfair or deceptive act or practice, or an unfair claim settlement practice as defined under Chapter 541 or 542 or a rule adopted under either chapter.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 19, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.003, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.011, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter A. General Provisions › Section 83.002. Application of Chapter

Sec. 83.002.  APPLICATION OF CHAPTER.
(a)  This chapter applies to each company regulated by the commissioner, including:
(1)  a domestic or foreign, stock or mutual, life, health, or accident insurance company;
(2)  a domestic or foreign, stock or mutual, fire or casualty insurance company;
(3)  a Mexican casualty company;
(4)  a domestic or foreign Lloyd's plan insurer;
(5)  a domestic or foreign reciprocal or interinsurance exchange;
(6)  a domestic or foreign fraternal benefit society;
(7)  a domestic or foreign title insurance company;
(8)   a stipulated premium insurance company;
(9)  a nonprofit legal service corporation;
(10)  a statewide mutual assessment company;
(11)  a local mutual aid association;
(12)  a local mutual burial association;
(13)  an association exempt under Section 887.102;
(14)  a nonprofit hospital, medical, or dental service corporation, including a company subject to Chapter 842;
(15)  a county mutual insurance company; and
(16)  a farm mutual insurance company.
(b)  This chapter also applies to:
(1)  an agent of an entity described by Subsection (a);  and
(2)  an individual or a corporation, association, partnership, or other artificial person who:
(A)  is engaged in the business of insurance;
(B)  holds a permit, certificate, registration, license, or other authority under this code;  or
(C)  is regulated by the commissioner.
(c)  This chapter also applies to:
(1)  a person appointed as a qualified inspector under Section 2210.254; and
(2)  a person acting as a qualified inspector under Section 2210.254 without being appointed as a qualified inspector under either of those sections.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 20, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.004, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.012, eff. April 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 1, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1073 (H.B. 2439), Sec. 8, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.003, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter A. General Provisions › Section 83.003. Rules

Sec. 83.003.  RULES.  The commissioner may adopt reasonable rules to implement this chapter, including rules that provide, to the extent possible, uniformity of procedures between this state and other states, the United States, or the National Association of Insurance Commissioners.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter A. General Provisions › Section 83.004. Proceedings Under Other Law

Sec. 83.004.  PROCEEDINGS UNDER OTHER LAW.  The commissioner may proceed solely under this chapter or under this chapter in conjunction with other applicable law.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter B. Issuance of Orders › Section 83.051. Authority of Commissioner to Issue Order

Sec. 83.051.  AUTHORITY OF COMMISSIONER TO ISSUE ORDER.  (a)  The commissioner ex parte may issue an emergency cease and desist order if:
(1)  the commissioner believes that:
(A)  an authorized person engaging in the business of insurance is:
(i)  committing an unfair act; or
(ii)  in a hazardous condition or a hazardous financial condition under Section 843.406 or Subchapter A, Chapter 404, as determined by the commissioner; or
(B)  an unauthorized person:
(i)  is engaging in the business of insurance in violation of Chapter 101 or in violation of a rule adopted under that chapter; and
(ii)  does not meet a statutory exception or exemption; and
(2)  with respect to conduct described by Subdivision (1)(A), it appears to the commissioner that the alleged conduct:
(A)  is fraudulent;
(B)  is hazardous or creates an immediate danger to the public safety; or
(C)  is causing or can be reasonably expected to cause public injury that:
(i)  is likely to occur at any moment;
(ii)  is incapable of being repaired or rectified; and
(iii)  has or is likely to have influence or effect.
(b)  An order is final on the 61st day after the date it is served, unless the affected person requests a hearing under Section 83.053.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.013, eff. April 1, 2009.
Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809), Sec. 3, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter B. Issuance of Orders › Section 83.052. Notice

Sec. 83.052.  NOTICE.  (a)  On issuance of an order under Section 83.051, the commissioner shall serve on the affected person an order that:
(1)  contains a statement of the charges;  and
(2)  requires the person immediately to cease and desist from the acts, methods, or practices stated in the order.
(b)  The commissioner shall serve the order by registered or certified mail, return receipt requested, to the affected person's last known address.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter B. Issuance of Orders › Section 83.053. Request for Hearing

Sec. 83.053.  REQUEST FOR HEARING.  (a)  A person affected by an order is entitled to request a hearing to contest the order.
(b)  The affected person must request the hearing not later than the 60th day after the date on which the person is served with an order required by Section 83.052.
(c)  A request to contest an order must:
(1)  be in writing;
(2)  be directed to the commissioner;  and
(3)  state the grounds for the request to set aside or modify the order.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter B. Issuance of Orders › Section 83.054. Hearing

Sec. 83.054.  HEARING.  (a)  On receiving a timely request for a hearing under Section 83.053, the department shall docket the case at the State Office of Administrative Hearings not later than the 30th day after the date the department receives the request.
(b)  The hearing is subject to the procedures for contested cases under Chapter 2001, Government Code.
(c)  At the hearing, the person requesting the hearing must show why the order should not be affirmed.
(d)  Following receipt of the proposal for decision from the State Office of Administrative Hearings regarding the hearing, the commissioner shall affirm, modify, or set aside in whole or in part the order.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809), Sec. 5, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter B. Issuance of Orders › Section 83.055. Effect of Order Pending Hearing

Sec. 83.055.  EFFECT OF ORDER PENDING HEARING.  Pending a hearing under this subchapter, an order continues in effect unless the order is stayed by the commissioner.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter C. Enforcement › Section 83.101. Authority of Commissioner

Sec. 83.101.  AUTHORITY OF COMMISSIONER.  If the commissioner reasonably believes that a person has violated an order issued under this chapter, the commissioner may:
(1)  initiate proceedings under this subchapter to impose an administrative penalty or direct restitution;
(2)  refer the matter to the attorney general for enforcement;
(3)  initiate a proceeding to revoke the person's certificate of authority;  or
(4)  pursue another action the commissioner considers appropriate under applicable law.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter C. Enforcement › Section 83.102. Determination of Violation

Sec. 83.102.  DETERMINATION OF VIOLATION.  In determining whether an order has been violated, the commissioner shall consider the maintenance of procedures reasonably adopted to ensure compliance with the order.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter C. Enforcement › Section 83.103. Hearing on Administrative Penalty

Sec. 83.103.  HEARING ON ADMINISTRATIVE PENALTY.  (a)  If the commissioner pursues action to impose an administrative penalty under Section 83.101(1), the commissioner shall serve on the person notice of the time and place of a hearing to be held not earlier than the 21st day after the date the notice is received.
(b)  The notice must contain a statement of the facts or conduct alleged to violate the order.
(c)  The commissioner shall serve the notice by registered or certified mail, return receipt requested, to the person's last known address.
(d)  The hearing is subject to the procedures for contested cases under Chapter 2001, Government Code.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter C. Enforcement › Section 83.104. Imposition of Administrative Penalty; Restitution

Sec. 83.104.  IMPOSITION OF ADMINISTRATIVE PENALTY;  RESTITUTION.  (a)  After a hearing, if the commissioner determines that an order has been violated, the commissioner may:
(1)  impose an administrative penalty of $25,000 for each act of violation;
(2)  direct the person against whom the order was issued to make complete restitution to each Texas resident, Texas insured, and entity operating in this state that is harmed by the violation;  or
(3)  impose the penalty and direct restitution.
(b)  A person directed to make restitution shall make the restitution in the form and amount and within the period determined by the commissioner.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter C. Enforcement › Section 83.105. Failure to Pay Penalty

Sec. 83.105.  FAILURE TO PAY PENALTY.  If a person fails to pay a penalty assessed under this subchapter, the commissioner may:
(1)  refer the matter to the attorney general for enforcement;  or
(2)  cancel or revoke any permit, license, certificate of authority, certificate of registration, or other authorization issued under this code as provided by Chapter 82.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter D. Judicial Review; Judicial Action › Section 83.151. Appeal

Sec. 83.151.  APPEAL.  A person affected by an order of the commissioner under Section 83.051 or 83.104 may appeal the order by filing suit in a district court in Travis County not later than the 20th day after the date of the order.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter D. Judicial Review; Judicial Action › Section 83.152. Effect of Petition on Order or Related Decision

Sec. 83.152.  EFFECT OF PETITION ON ORDER OR RELATED DECISION.  A petition for appeal filed under Section 83.151 does not stay or vacate an order or a decision made under Subchapter B unless the court, after hearing, issues an order that specifically stays or vacates the order or decision.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 83 - Emergency Cease and Desist Orders › Subchapter D. Judicial Review; Judicial Action › Section 83.153. Judicial Action for Enforcement of Order; Attorney's Fees

Sec. 83.153.  JUDICIAL ACTION FOR ENFORCEMENT OF ORDER;  ATTORNEY'S FEES.  The department may recover reasonable attorney's fees if judicial action is necessary to enforce an order issued under Section 83.051 or 83.104.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter A. General Provisions › Section 84.001. Definition

Sec. 84.001.  DEFINITION.  In this chapter, "person" means an individual, corporation, trust, partnership, association, or any other legal entity.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter A. General Provisions › Section 84.002. Application of Chapter to Administrative Penalty

Sec. 84.002.  APPLICATION OF CHAPTER TO ADMINISTRATIVE PENALTY.  (a)  This chapter applies to each monetary penalty the department or commissioner imposes under this code or another insurance law of this state.
(b)  For purposes of this chapter, each of the monetary penalties is an administrative penalty.
(c)  This chapter applies to a monetary penalty the department or the commissioner of workers' compensation imposes under Title 5, Labor Code, only as provided by that title.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.059, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter A. General Provisions › Section 84.003. Application of Administrative Procedure Act

Sec. 84.003.  APPLICATION OF ADMINISTRATIVE PROCEDURE ACT.  A proceeding under this chapter is subject to Chapter 2001, Government Code.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter A. General Provisions › Section 84.004. Rulemaking Authority

Sec. 84.004.  RULEMAKING AUTHORITY.  (a)  The commissioner may adopt and enforce reasonable rules that the commissioner determines necessary to accomplish the purposes of this chapter.
(b)  The commissioner may establish by rule the amount of an administrative penalty to be imposed under Section 84.022 for a specific violation.
(c)  The existence or absence of a rule adopted under this chapter does not limit the commissioner's authority to take any action authorized by law.
Added by Acts 2009, 81st Leg., R.S., Ch. 1029 (H.B. 4358), Sec. 1, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter B. Imposition of Administrative Penalty › Section 84.021. Imposition of Penalty

Sec. 84.021.  IMPOSITION OF PENALTY.  The commissioner may impose an administrative penalty on a person licensed or regulated under this code or another insurance law of this state, including an unauthorized person as defined by Section 83.001, who violates:
(1)  this code;
(2)  another insurance law of this state; or
(3)  a rule or order adopted under this code or another insurance law of this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809), Sec. 6, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter B. Imposition of Administrative Penalty › Section 84.022. Penalty Amount

Sec. 84.022.  PENALTY AMOUNT.  (a)  The penalty for a violation may not exceed $25,000, unless a greater or lesser penalty is specified by this code or another insurance law of this state.
(b)  The amount of the penalty shall be based on:
(1)  the seriousness of the violation, including:
(A)  the nature, circumstances, extent, and gravity of the violation;  and
(B)  the hazard or potential hazard created to the health, safety, or economic welfare of the public;
(2)  the economic harm to the public interest or public confidence caused by the violation;
(3)  the history of previous violations;
(4)  the amount necessary to deter a future violation;
(5)  efforts to correct the violation;
(6)  whether the violation was intentional;  and
(7)  any other matter that justice may require.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.041. Report and Notice of Violation and Penalty

Sec. 84.041.  REPORT AND NOTICE OF VIOLATION AND PENALTY.  (a)  If the department determines that a violation has occurred, the department may issue to the commissioner a report that states the facts on which the determination is based and the department's recommendation on the imposition of an administrative penalty, including a recommendation on the amount of the penalty.
(b)  Not later than the 14th day after the date the report is issued, the department shall give written notice of the report to the affected person.  The notice may be given by certified mail.  The notice must:
(1)  include:
(A)  a brief summary of the alleged violation;  and
(B)  a statement of the amount of the recommended penalty;  and
(2)  inform the person that the person has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.042. Penalty to Be Paid or Hearing Requested

Sec. 84.042.  PENALTY TO BE PAID OR HEARING REQUESTED.  (a)  Not later than the 20th day after the date the person receives the notice, the person, in writing, may:
(1)  accept the department's determination and recommended administrative penalty;  or
(2)  request a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
(b)  If the person accepts the department's determination and recommended penalty, the commissioner by order shall approve the determination and require the person to pay the recommended penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.043. Hearing and Decision

Sec. 84.043.  HEARING AND DECISION.  (a)  If the person requests a hearing or fails to respond in a timely manner to the notice, the department shall set a hearing and give notice of the hearing to the person.
(b)  An administrative law judge of the State Office of Administrative Hearings shall conduct the hearing.
(c)  The administrative law judge shall make findings of fact and conclusions of law and promptly issue to the commissioner a proposal for a decision about the occurrence of the violation and the amount of a proposed administrative penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.044. Decision by Commissioner

Sec. 84.044.  DECISION BY COMMISSIONER.  (a)  Based on the findings of fact, conclusions of law, and proposal for decision, the commissioner by order may:
(1)  find that a violation occurred and impose an administrative penalty;  or
(2)  find that a violation did not occur.
(b)  The notice of the commissioner's order must include a statement of the right of the person to judicial review of the order.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.045. Options Following Decision: Pay or Appeal

Sec. 84.045.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.  Not later than the 30th day after the date the commissioner's order becomes final, the person shall:
(1)  pay the administrative penalty;  or
(2)  file a petition for judicial review contesting the occurrence of the violation or the amount of the penalty, or both, and either pay or not pay the penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.046. Stay of Enforcement of Penalty

Sec. 84.046.  STAY OF ENFORCEMENT OF PENALTY.  (a)  A person who files a petition for judicial review without paying the administrative penalty may, within the 30-day period prescribed by Section 84.045:
(1)  stay enforcement of the penalty by:
(A)  paying the penalty to the court for placement in an escrow account;  or
(B)  giving the court a supersedeas bond approved by the court that:
(i)  is for the amount of the penalty;  and
(ii)  is effective until all judicial review of the board's order is final;  or
(2)  request the court to stay enforcement of the penalty by:
(A)  filing with the court an affidavit stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond;  and
(B)  giving a copy of the affidavit to the commissioner by certified mail.
(b)  If the commissioner receives a copy of an affidavit under Subsection (a)(2), the commissioner may file with the court, not later than the fifth day after the date the copy is received, a contest to the affidavit.  The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty on finding that the alleged facts are true.  The person who files an affidavit has the burden of proving that the person is financially unable to pay the penalty and to give a supersedeas bond.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.047. Collection of Penalty

Sec. 84.047.  COLLECTION OF PENALTY.  If the person does not pay the administrative penalty and the enforcement of the penalty is not stayed, the commissioner may refer the matter to the attorney general for collection of the penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.048. Standard of Judicial Review

Sec. 84.048.   STANDARD OF JUDICIAL REVIEW.  The order of the commissioner is subject to judicial review under the substantial evidence rule.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.049. Decision by Court

Sec. 84.049.  DECISION BY COURT.  (a)  If the court sustains the finding that a violation occurred, the court may uphold or reduce the amount of the administrative penalty and order the person to pay the full or reduced amount of the penalty.
(b)  If the court does not sustain the finding that a violation occurred, the court shall order that a penalty is not owed.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.050. Remittance of Penalty and Interest

Sec. 84.050.  REMITTANCE OF PENALTY AND INTEREST.  (a)  If the person paid the administrative penalty and if the amount of the penalty is reduced or the penalty is not upheld by the court, the court shall order, when the judgment becomes final, that the appropriate amount plus accrued interest be remitted to the person.
(b)  The interest accrues at the rate charged on loans to depository institutions by the New York Federal Reserve Bank.
(c)  The interest shall be paid for the period beginning on the date the penalty is paid and ending on the date the penalty is remitted.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 84 - Administrative Penalties › Subchapter C. Procedural Requirements › Section 84.051. Release of Bond

Sec. 84.051.  RELEASE OF BOND.  (a)  If the person gave a supersedeas bond and if the administrative penalty is not upheld by the court, the court shall order, when the judgment becomes final, the release of the bond.
(b)  If the person gave a supersedeas bond and if the amount of the penalty is reduced, the court shall order the release of the bond after the person pays the reduced amount.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 85 - General Criminal Enforcement › Subchapter A. General Provisions › Section 85.001. Violation of Certain Laws for Which Punishment Is Not Provided; Offense

Sec. 85.001.  VIOLATION OF CERTAIN LAWS FOR WHICH PUNISHMENT IS NOT PROVIDED;  OFFENSE.  (a)  A person commits an offense if the person violates a law of this state regulating the business of life, fire, or marine insurance.
(b)  Unless another penalty is provided by law, an offense under this section is a misdemeanor punishable by a fine of not less than $500 or more than $1,000.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 85 - General Criminal Enforcement › Subchapter B. Prosecution of Offenses › Section 85.051. Venue for Prosecution

Sec. 85.051.  VENUE FOR PROSECUTION.  (a)  A person who violates the Penal Code or a penal provision of this code while engaged in the business of insurance may be prosecuted in:
(1)  Travis County;  or
(2)  a county in which prosecution is authorized under the Code of Criminal Procedure.
(b)  A law limiting regulation by the department under this code or another insurance law of this state does not restrict the application of this section.
(c)  This section controls if there is a conflict or ambiguity between this section and another provision of this code or another insurance law of this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 85 - General Criminal Enforcement › Subchapter B. Prosecution of Offenses › Section 85.052. Election of Prosecution

Sec. 85.052.  ELECTION OF PROSECUTION.  A person who commits an offense under this code may be prosecuted under this code or any other law of this state under which the person may be prosecuted.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 86 - Revocation or Modification of Certificate of Authority; Authority to Bring Certain Actions › Subchapter A. Revocation or Modification of Certificate › Section 86.001. Authority to Revoke or Modify Certificate of Authority

Sec. 86.001.  AUTHORITY TO REVOKE OR MODIFY CERTIFICATE OF AUTHORITY.  The commissioner may revoke or modify a certificate of authority if a condition or requirement prescribed by law for granting the certificate is no longer satisfied.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 12, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 86 - Revocation or Modification of Certificate of Authority; Authority to Bring Certain Actions › Subchapter A. Revocation or Modification of Certificate › Section 86.002. Notice of Intent to Revoke or Modify Certificate of Authority

Sec. 86.002.  NOTICE OF INTENT TO REVOKE OR MODIFY CERTIFICATE OF AUTHORITY.  (a)  The commissioner must notify an insurance carrier in writing of the commissioner's intent to revoke or modify the carrier's certificate of authority.
(b)  The commissioner must provide the notice not later than the 10th day before the date the revocation or modification is to occur.
(c)  The commissioner must specifically state in the notice the reason for the action.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 12, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 86 - Revocation or Modification of Certificate of Authority; Authority to Bring Certain Actions › Subchapter B. Authority to Bring Certain Actions › Section 86.051. Authority to Bring Action for or Prosecute Violation of Law

Sec. 86.051.  AUTHORITY TO BRING ACTION FOR OR PROSECUTE VIOLATION OF LAW.  The department, through the attorney general or an attorney designated by the attorney general, may institute an action relating to or initiate a prosecution for a violation of a law of this state relating to insurance.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 12, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 86 - Revocation or Modification of Certificate of Authority; Authority to Bring Certain Actions › Subchapter B. Authority to Bring Certain Actions › Section 86.052. Authority to Bring Action to Close Affairs or Restrain Business of Domestic Insurance Company

Sec. 86.052.  AUTHORITY TO BRING ACTION TO CLOSE AFFAIRS OR RESTRAIN BUSINESS OF DOMESTIC INSURANCE COMPANY.  Only the department may bring an action to:
(1)  close the affairs of an insurance company organized under the laws of this state; or
(2)  enjoin, restrain, or interfere with the prosecution of the business of an insurance company organized under the laws of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 12, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter A. General Provisions › Section 101.001. State Policy and Purpose

Sec. 101.001.  STATE POLICY AND PURPOSE.  (a)  It is a state concern that many residents of this state hold insurance policies issued by persons or insurers who are not authorized to do insurance business in this state and who are not qualified as eligible surplus lines insurers under Chapter 981.  These residents face often insurmountable obstacles in asserting legal rights under the policies in foreign forums under unfamiliar laws and rules of practice.
(b)  It is the policy of this state to protect residents against acts by a person or insurer who is not authorized to do insurance business in this state by:
(1)  maintaining fair and honest insurance markets;
(2)  protecting the premium tax revenues of this state;
(3)  protecting authorized persons and insurers, who are subject to strict regulation, from unfair competition by unauthorized persons and insurers;  and
(4)  protecting against evasion of the insurance regulatory laws of this state.
(c)  The purpose of this chapter is to subject certain insurers and persons to the jurisdiction of:
(1)  the commissioner and proceedings before the commissioner;  and
(2)  the courts of this state in suits by or on behalf of the state or an insured or beneficiary under an insurance contract.
(d)  It is also a concern that this state not become a safe harbor for persons or insurers engaged in the unauthorized business of insurance in this state, regardless of whether the insureds or other persons affected by the unauthorized business of insurance are residents of this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 671, Sec. 1, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1419, Sec. 21, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.005, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.014, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter A. General Provisions › Section 101.002. Definitions

Sec. 101.002.  DEFINITIONS.  In this chapter:
(1)  "Insurer" includes:
(A)  a corporation, association, partnership, or individual engaged as a principal in the business of insurance;
(B)  an interinsurance exchange or mutual benefit society;  or
(C)  an insurance exchange or syndicate.
(2)  "Unfair act" means an unfair method of competition or an unfair or deceptive act or practice as defined under Chapter 541 or a rule adopted under that chapter.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.015, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter A. General Provisions › Section 101.003. Insurance Exchanges and Syndicates; Rules

Sec. 101.003.  INSURANCE EXCHANGES AND SYNDICATES;  RULES.  The commissioner shall adopt rules defining insurance exchanges and syndicates that are insurers for purposes of Section 101.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter A. General Provisions › Section 101.004. Unconstitutional Application Prohibited; Notice to Commissioner

Sec. 101.004.  UNCONSTITUTIONAL APPLICATION PROHIBITED;  NOTICE TO COMMISSIONER.  (a)  Subject to Subsection (b), this chapter does not apply to an insurer or other person to whom, under the constitution or statutes of the United States or the constitution of this state, it may not apply.
(b)  Before commencing operations, an insurer or other person claiming an exemption described by Subsection (a) must file with the commissioner:
(1)  notice of the claim;  and
(2)  documents supporting the claim.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter B. Business of Insurance; Exceptions › Section 101.052. Advertising Relating to Medicare Supplement Benefit Plans

Sec. 101.052.  ADVERTISING RELATING TO MEDICARE SUPPLEMENT BENEFIT PLANS.  With respect to a Medicare supplement benefit plan authorized under Chapter 1652, the business of insurance in this state includes using, creating, publishing, mailing, or disseminating in this state an advertisement relating to an act that constitutes the business of insurance under Section 101.051 unless the advertisement is used, created, published, mailed, or disseminated on behalf of an insurer or person who:
(1)  is authorized under this code to engage in the business of insurance in this state;
(2)  has actual knowledge of the content of the advertisement;
(3)  has authorized the advertisement to be used, created, published, mailed, or disseminated on that insurer's or person's behalf; and
(4)  is clearly identified by name in the advertisement as the sponsor of the advertisement.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 23, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.007, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.016, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter B. Business of Insurance; Exceptions › Section 101.053. Application of Subchapter

Sec. 101.053.  APPLICATION OF SUBCHAPTER.  (a)  Sections 101.051 and 101.052 apply to an act whether performed by mail or otherwise.  Venue for an act performed by mail is at the place where the matter transmitted by mail is delivered and takes effect.
(b)  Sections 101.051 and 101.052 do not apply to:
(1)  the lawful transaction of surplus lines insurance under Chapter 981;
(2)  the lawful transaction of reinsurance by insurers;
(3)  a transaction in this state that:
(A)  involves a policy that:
(i)  is lawfully solicited, written, and delivered outside this state; and
(ii)  covers, at the time the policy is issued, only subjects of insurance that are not resident, located, or expressly to be performed in this state; and
(B)  takes place after the policy is issued;
(4)  a transaction:
(A)  that involves an insurance contract independently procured by the insured from an insurance company not authorized to do insurance business in this state through negotiations occurring entirely outside this state;
(B)  that is reported; and
(C)  on which premium tax, if applicable, is paid in accordance with Chapter 226;
(5)  a transaction in this state that:
(A)  involves group life, health, or accident insurance, other than credit insurance, and group annuities in which the master policy for the group was lawfully issued and delivered in a state in which the insurer or person was authorized to do insurance business; and
(B)  is authorized by a statute of this state;
(6)  an activity in this state by or on the sole behalf of a nonadmitted captive insurance company that insures solely:
(A)  directors' and officers' liability insurance for the directors and officers of the company's parent and affiliated companies;
(B)  the risks of the company's parent and affiliated companies; or
(C)  both the individuals and entities described by Paragraphs (A) and (B);
(7)  the issuance of a qualified charitable gift annuity under Chapter 102; or
(8)  a lawful transaction by a servicing company of the Texas workers' compensation employers' rejected risk fund under Section 4.08, Article 5.76-2, as that article existed before its repeal.
(c)  Subsection (b)(6) does not exempt an insured or insurer from the payment of an applicable tax on premium or from another applicable provision of this code.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 411, Sec. 1, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1419, Sec. 24,, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.008, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 209, Sec. 9, eff. Oct. 1, 2003;  Acts 2003, 78th Leg., ch. 1274, Sec. 13, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.01, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter B. Business of Insurance; Exceptions › Section 101.054. Exception; Full-Time Salaried Employee

Sec. 101.054.  EXCEPTION;  FULL-TIME SALARIED EMPLOYEE.  Section 101.051(b)(6) does not prohibit a full-time salaried employee of a corporate insured from acting as an insurance manager or buyer in placing insurance on behalf of:
(1)  the employee's employer;  or
(2)  a parent or affiliated company of the employer.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter B. Business of Insurance; Exceptions › Section 101.055. Exception; Certain Entities That Reimburse Medical Expenses

Sec. 101.055.  EXCEPTION;  CERTAIN ENTITIES THAT REIMBURSE MEDICAL EXPENSES.  (a)  Section 101.051(b)(7) does not apply to:
(1)  a program otherwise authorized by law that is established:
(A)  by a political subdivision of this state;
(B)  by a state agency;  or
(C)  under Chapter 791, Government Code;  or
(2)  a multiple employer welfare arrangement that is fully insured as defined by 29 U.S.C. Section 1144(b)(6).
(b)  Notwithstanding Subsection (a)(2), the commissioner may apply a law regulating the business of insurance to a multiple employer welfare arrangement described by that subdivision to the extent that the law provides:
(1)  standards requiring the maintenance of specified levels of contributions that the plan, or a trust established under the plan, must meet to be considered able to pay benefits in full when due;  and
(2)  provisions to enforce the standards described by Subdivision (1).
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter C. Prohibition; Enforcement › Section 101.101. Definition

Sec. 101.101.  DEFINITION.  In this subchapter, "person" means an individual or entity that is a person for purposes of Section 541.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.017, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter C. Prohibition; Enforcement › Section 101.102. Unauthorized Insurance Prohibited

Sec. 101.102.  UNAUTHORIZED INSURANCE PROHIBITED.  (a)  A person, including an insurer, may not directly or indirectly do an act that constitutes the business of insurance under this chapter except as authorized by statute.
(b)  With respect to insurance of a subject that is resident, located, or to be performed in this state, this section does not prohibit an act performed outside this state, including the collection of premiums, by a person, including an insurer, authorized to do business in this state if the transaction and insurance contract otherwise comply with statute.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.