reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.001. Scope of Chapter; Purpose

Sec. 564.001.  SCOPE OF CHAPTER; PURPOSE.  (a) This chapter is intended to require disclosures on policy forms for certain occupational insurance policies designed or marketed to provide coverage to an employer that elects not to maintain workers' compensation insurance coverage under Chapter 406, Labor Code.
(b)  Nothing in this chapter prohibits an employer that is not required to maintain workers' compensation insurance coverage and has elected not to obtain workers' compensation insurance coverage from obtaining occupational accident, disease, or death insurance coverage for the employer or the employer's employees.
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.002. Applicability of Chapter

Sec. 564.002.  APPLICABILITY OF CHAPTER.  This chapter applies to an insurance company authorized to write accident and health insurance or liability insurance, including:
(1)  a surplus lines insurer;
(2)  a Lloyd's plan; and
(3)  a reciprocal or interinsurance exchange.
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.003. Exceptions

Sec. 564.003.  EXCEPTIONS.  This chapter does not apply to:
(1)  a plan that provides coverage:
(A)  only for a specified disease or another limited benefit;
(B)  only for dental or vision care; or
(C)  only for hospital indemnity for hospital confinement;
(2)  a Medicare supplemental policy as defined by Section  1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);
(3)  long-term care coverage or benefits, home health care coverage or benefits, community-based care coverage or benefits, or any combination of those coverages or benefits;
(4)  an individual or group life insurance policy; or
(5)  individual or group credit life, accident, or disability insurance.
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.004. Occupational Policy Defined

Sec. 564.004.  OCCUPATIONAL POLICY DEFINED.  In this chapter, "occupational policy" means:
(1)  an individual or group accident or health insurance policy that explicitly provides coverage or benefits for an employer or the employer's employees for an employee's occupational bodily injury, disease, or death;
(2)  an employer's insurance policy that explicitly provides liability coverage to an employer that elects not to maintain workers' compensation insurance coverage under Chapter 406, Labor Code, for an employee's occupational bodily injury, disease, or death in:
(A)  a general liability insurance policy;
(B)  a commercial multiple peril insurance policy; or
(C)  any other type of insurance policy designated by the department as intended to provide liability coverage to an employer that elects not to maintain workers' compensation insurance coverage under Chapter 406, Labor Code, for an employee's occupational bodily injury, disease, or death;
(3)  an accident,  health, or liability insurance policy that does not expressly include coverage for occupational injuries, disease, or death, but is marketed or sold to or through an employer as an alternative to coverage for benefits or liability provided by a workers' compensation insurance policy; or
(4)  a policy that includes occupational accident and health and liability coverage in the same policy.
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.005. Required Disclosures for Occupational Policies

Sec. 564.005.  REQUIRED DISCLOSURES FOR OCCUPATIONAL POLICIES.  An occupational policy shall include the following disclosure statement in 10-point boldface type on the first page of the policy and on the first page of all materials used in advertising or marketing the occupational policy to an employer that elects not to maintain workers' compensation insurance coverage under Chapter 406, Labor Code:
"THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE FILED AND POSTED."
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 564 - Disclosures for the Sale of Certain Occupational Insurance Policies › Section 564.006. Rules

Sec. 564.006.  RULES.  The commissioner shall adopt rules as necessary to implement this chapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 281 (H.B. 3769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.001. Purpose

Sec. 565.001.  PURPOSE.  (a)  The purpose of this chapter is to regulate the use of environmental, social, or governance models, scores, factors, or standards to define acts or practices that may be unfair discrimination in the business of insurance in this state.
(b)  The legislature finds that there are numerous entities that have developed different environmental, social, or governance models, scores, factors, or standards that are used to:
(1)  evaluate financial risks for investments in certain businesses or industries; or
(2)  encourage or discourage business dealings or investments with certain types of businesses or industries.
(c)  To the extent that the use of such models, scores, factors, or standards are not based on sound actuarial principles, or do not bear a reasonable relationship to the expected loss and expense experience related to insurance risks, the rating of certain businesses or risks in this state without an ordinary insurance business purpose may adversely affect the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of this state or a portion of this state.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.002. Definition

Sec. 565.002.  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 or mutual property and casualty insurance company;
(2)  a Lloyd's plan;
(3)  a reciprocal or interinsurance exchange;
(4)  a county mutual insurance company;
(5)  a farm mutual insurance company;
(6)  any insurer writing a line of insurance regulated by Title 10;
(7)  all life, health, and accident insurance companies regulated by the department, including:
(A)  a stock or mutual life, health, or accident insurance company;
(B)  a fraternal benefit society;
(C)  a nonprofit hospital, medical, or dental service corporation, including a group hospital service corporation operating under Chapter 842; and
(D)  a stipulated premium company; and
(8)  a health maintenance organization operating under Chapter 843.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.003. Applicability of Chapter

Sec. 565.003.  APPLICABILITY OF CHAPTER.  (a) Except as provided by this section, this chapter applies only to insurance policies issued and delivered by an insurer in this state.
(b)  This chapter does not require the filing of rates for any line, type of insurer, or type of insurance business that is not specifically required by statute to file rates with the department.
(c)  This chapter does not apply to:
(1)  fidelity, guaranty, and surety bonds; or
(2)  crop insurance.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.004. Construction of Chapter

Sec. 565.004.  CONSTRUCTION OF CHAPTER.  (a)  This chapter shall be construed and applied to promote the underlying purposes as provided by Section 565.001.
(b)  This chapter may not be construed or applied to require:
(1)  an insurer to write any line or type of business that the insurer does not write; or
(2)  a material change in the insurer's current business plans.
(c)  Nothing in this chapter is intended to create any type of private cause of action or independent basis in a civil or criminal proceeding.
(d)  Nothing in this chapter is intended to prohibit the use of information that is relevant and related to the risk being insured even if that information may also be used or considered in developing an environmental, social, or governance model, score, factor, or standard.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.005. Prohibited Criteria

Sec. 565.005.  PROHIBITED CRITERIA.  Except as provided by Section 565.006, an insurer may not use an environmental, social, or governance model, score, factor, or standard to charge a rate different than the rate charged to another business or risk in the same class for essentially the same hazard.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.006. Exception

Sec. 565.006.  EXCEPTION.  An insurer does not violate Section 565.005 if the insurer's actions are based on an ordinary insurance business purpose, including the use of sound actuarial principles, or financial solvency considerations reasonably related to loss experience for the different types of risks and coverages made available by a particular insurer.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 565 - Prohibited Rating Criteria › Section 565.007. Regulatory Action

Sec. 565.007.  REGULATORY ACTION.  Nothing in this chapter is intended to authorize the department to adopt any rule, model, or standard requiring an insurer to use any environmental, social, or governance model law, regulation, or other standard that has not been specifically authorized by statute, including:
(1)  a rule, model, or standard required under any federal law that does not preempt state law under the McCarran-Ferguson Act (15 U.S.C. Section 1012(b)); or
(2)  a rule, model, or standard required by any national organization, including the National Association of Insurance Commissioners, that has not been specifically authorized by statute.
Added by Acts 2023, 88th Leg., R.S., Ch. 1144 (S.B. 833), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle D - Privacy › Chapter 601 - Privacy › Subchapter A. General Provisions › Section 601.001. Definitions

Sec. 601.001.  DEFINITIONS.  In this chapter:
(1)  "Affiliate" means a company that controls, is controlled by, or is under common control with another company.  For the purposes of this subdivision, "control" has the meaning described by Sections 823.005 and 823.151.
(2)  "Authorization" has the meaning assigned by Section 82.001.
(3)  "Covered entity" means an individual or entity that receives an authorization from the department.  The term includes an individual or entity described by Section 82.002.
(4)  "Nonaffiliated third party" means an entity that is not an affiliate of, or related to by common ownership or affiliated by corporate control with, the covered entity.  The term does not include a joint employee of the entity.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Sec. 601.002.  COMPLIANCE WITH FEDERAL LAW REQUIRED.  (a)  A covered entity shall comply with 15 U.S.C. Sections 6802 and 6803, as amended, in the same manner as a financial institution is required to comply under those sections.
(b)  An entity that is a nonaffiliated third party in relation to a covered entity shall comply with 15 U.S.C. Section 6802(c), as amended.
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 D - Privacy › Chapter 601 - Privacy › Subchapter A. General Provisions › Section 601.003. Exemption

Sec. 601.003.  EXEMPTION.  Section 601.002(a) does not apply to a covered entity to the extent that the entity is acting solely as an insurance agent, employee, or other authorized representative for another covered entity.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Sec. 601.004.  TREATMENT OF CERTAIN HEALTH INFORMATION;  STRICTER RULES NOT PRECLUDED.  This chapter does not affect the authority of the department or another state agency to adopt stricter rules governing the treatment of health information by a covered entity if another law gives the department or agency that authority, including a law or rule of this state related to the privacy of individually identifiable health information under Subtitle F, Title II, Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.), as amended.
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 D - Privacy › Chapter 601 - Privacy › Subchapter B. Department Powers and Duties › Section 601.051. Rules

Sec. 601.051.  RULES.  (a)  The commissioner shall adopt:
(1)  rules to implement this chapter;  and
(2)  any other rules necessary to carry out Subtitle A, Title V, Gramm-Leach-Bliley Act (15 U.S.C. Section 6801 et seq.), as amended, to make this state eligible to override federal regulations as described by 15 U.S.C. Section 6805(c), as amended.
(b)  In adopting rules under this chapter, the commissioner shall attempt to keep state privacy requirements consistent with federal regulations adopted under Subtitle A, Title V, Gramm-Leach-Bliley Act (15 U.S.C. Section 6801 et seq.), as amended.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Sec. 601.052.  IMPLEMENTATION OF CERTAIN STANDARDS.  The department shall implement standards as required by 15 U.S.C. Section 6805(b), as amended.
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 D - Privacy › Chapter 601 - Privacy › Subchapter C. Enforcement › Section 601.101. Enforcement by Department

Sec. 601.101.  ENFORCEMENT BY DEPARTMENT.  The department shall enforce 15 U.S.C. Sections 6801-6805, as amended, to the extent required by 15 U.S.C. Section 6805, as amended, and 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 D - Privacy › Chapter 601 - Privacy › Subchapter C. Enforcement › Section 601.102. Injunctive or Declaratory Relief; Civil Penalty

Sec. 601.102.  INJUNCTIVE OR DECLARATORY RELIEF;  CIVIL PENALTY.  (a)  The attorney general, after conferring with the commissioner, may institute an action for injunctive or declaratory relief to restrain a violation of this chapter.
(b)  In addition to instituting an action for injunctive relief under Subsection (a), the attorney general, after conferring with the commissioner, may institute an action for civil penalties against a covered entity or nonaffiliated third party for a violation of this chapter.  A civil penalty assessed under this section may not exceed $3,000 for each violation.
(c)  If the court in which an action under Subsection (b) is pending finds that violations of this chapter have occurred with a frequency that constitutes a pattern or practice, the court may assess a civil penalty not to exceed $250,000.
(d)  If the attorney general substantially prevails in an action for injunctive relief or a civil penalty under this section, the attorney general may recover reasonable attorney's fees, costs, and expenses incurred obtaining the relief or penalty, including court costs and witness fees.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter A. General Provisions › Section 602.001. Definitions

Sec. 602.001.  DEFINITIONS.  In this chapter:
(1)  "Covered entity" means a person who holds or is required to hold a license, registration, certificate of authority, or other authorization under this code or another insurance law of this state.  The term includes:
(A)  an insurance company, including:
(i)  a county mutual insurance company;
(ii)  a farm mutual insurance company;
(iii)  a fraternal benefit society;
(iv)  a group hospital service corporation;
(v)  a Lloyd's plan;
(vi)  a local mutual aid association;
(vii)  a mutual insurance company;
(viii)  a reciprocal or interinsurance exchange;
(ix)  a statewide mutual assessment company;  and
(x)  a stipulated premium company;
(B)  a health maintenance organization;  and
(C)  an insurance agent.
(2)  "Health information" means information regarding an individual, other than the individual's age or gender, whether provided orally or recorded in any medium or form, that is created by or derived from the individual or a health care provider and that relates to:
(A)  the past, present, or future physical, mental, or behavioral health or condition of the individual;
(B)  the provision of health care to the individual;  or
(C)  payment for the provision of health care to the individual.
(3)  "Nonpublic personal health information" means health information:
(A)  that identifies an individual who is the subject of the information;  or
(B)  with respect to which there is a reasonable basis to believe that the information could be used to identify an individual.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter A. General Provisions › Section 602.002. Applicability of Chapter to Covered Entity Required to Comply With Certain Federal Standards

Sec. 602.002.  APPLICABILITY OF CHAPTER TO COVERED ENTITY REQUIRED TO COMPLY WITH CERTAIN FEDERAL STANDARDS.  This chapter does not apply to a covered entity that is required to comply with the standards governing the privacy of individually identifiable health information adopted by the United States secretary of health and human services under Section 262(a), Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.).
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter A. General Provisions › Section 602.003. Construction of Chapter

Sec. 602.003.  CONSTRUCTION OF CHAPTER.  (a)  This chapter does not preempt or supersede state law in effect on July 1, 2002, that relates to the privacy of medical records, health information, or insurance information.
(b)  This chapter may not be construed to modify, limit, or supersede the operation of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.).
(c)  This chapter may not be used as a basis for drawing an inference that information is or is not transaction or experience information under Section 603 of the federal Fair Credit Reporting Act (15 U.S.C. Section 1681a).
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter A. General Provisions › Section 602.004. Rules

Sec. 602.004.  RULES.  The commissioner may adopt rules as necessary to implement 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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter B. Authorized Disclosure of Certain Health Information › Section 602.051. Authorization for Disclosure of Certain Health Information

Sec. 602.051.  AUTHORIZATION FOR DISCLOSURE OF CERTAIN HEALTH INFORMATION.  (a)  Except as provided by Section 602.053, a covered entity must obtain authorization to disclose nonpublic personal health information before disclosing the information.
(b)  A request for authorization to disclose nonpublic personal health information may be in written or electronic form and must:
(1)  state the identity of the consumer or customer who is the subject of the information;
(2)  describe:
(A)  each type of information to be disclosed;
(B)  each party to whom the covered entity intends to disclose the information;
(C)  the purpose of the disclosure;
(D)  how the information will be used;  and
(E)  the procedure for revoking the authorization;
(3)  include the signature of:
(A)  the consumer or customer who is the subject of the information;  or
(B)  the individual who is legally empowered to grant authorization;
(4)  state the date the authorization is signed;  and
(5)  provide notice of:
(A)  the period for which the authorization is valid;  and
(B)  the consumer's or customer's right to revoke the authorization at any time.
(c)  The period for which the authorization is valid may not exceed 24 months.
(d)  The right of a consumer or customer to revoke an authorization at any time is subject to the rights of an individual who, before receiving notice of a revocation, acted in reliance on the authorization.
(e)  The covered entity shall retain the original or a copy of the authorization in the records of the individual who is the subject of the nonpublic personal health information.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter B. Authorized Disclosure of Certain Health Information › Section 602.052. Delivery of Authorization Form and Request for Authorization

Sec. 602.052.  DELIVERY OF AUTHORIZATION FORM AND REQUEST FOR AUTHORIZATION.  (a)  A covered entity may deliver to a consumer or customer a request for authorization and an authorization form only if the request and form are clear and conspicuous.
(b)  A covered entity is required to include delivery of the authorization form in a notice to a consumer or customer only if the covered entity intends to disclose health information protected 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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter B. Authorized Disclosure of Certain Health Information › Section 602.053. Exceptions

Sec. 602.053.  EXCEPTIONS.  A covered entity may disclose nonpublic personal health information to the extent that the disclosure is necessary to perform the following insurance or health maintenance organization functions on behalf of the covered entity:
(1)  the investigation or reporting of actual or potential fraud, misrepresentation, or criminal activity;
(2)  underwriting;
(3)  the placement or issuance of an insurance policy or evidence of coverage;
(4)  loss control services;
(5)  ratemaking or guaranty fund functions;
(6)  reinsurance or excess loss insurance;
(7)  risk management;
(8)  case management;
(9)  disease management;
(10)  quality assurance;
(11)  quality improvement;
(12)  performance evaluation;
(13)  health care provider credentialing verification;
(14)  utilization review;
(15)  peer review activities;
(16)  actuarial, scientific, medical, or public policy research;
(17)  grievance procedures;
(18)  the internal administration of compliance, managerial, and information systems;
(19)  policyholder or enrollee services;
(20)  auditing;
(21)  reporting;
(22)  database security;
(23)  the administration of consumer disputes and inquiries;
(24)  external accreditation standards;
(25)  the replacement of a group benefit plan or workers' compensation policy or program;
(26)  activities in connection with a sale, merger, transfer, or exchange of all or part of a business or operating unit;
(27)  any activity that permits disclosure without authorization under the federal Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.), as amended;
(28)  disclosure that is required, or that is a lawful or appropriate method to enforce the covered entity's rights or the rights of other persons engaged, in carrying out a transaction or providing a product or service that the consumer requests or authorizes;
(29)  claims administration, adjustment, and management;
(30)  any activity that is:
(A)  otherwise permitted by law;
(B)  required by a governmental reporting authority;  or
(C)  required to comply with legal process;  and
(31)  any other insurance or health maintenance organization functions the commissioner approves that are:
(A)  necessary for appropriate performance of insurance or health maintenance organization functions;  and
(B)  fair and reasonable to the interests of consumers.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter B. Authorized Disclosure of Certain Health Information › Section 602.054. Compliance With Other Law

Sec. 602.054.  COMPLIANCE WITH OTHER LAW.  A covered entity shall comply with:
(1)  Subchapter D, Chapter 181, Health and Safety Code, except as otherwise provided by that subchapter; and
(2)  the standards adopted under Section 182.108, Health and Safety Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1126 (H.B. 300), Sec. 18, eff. September 1, 2012.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.101. Prohibition

Sec. 602.101.  PROHIBITION.  A covered entity may not knowingly or wilfully violate 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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.102. Injunction

Sec. 602.102.  INJUNCTION.  The attorney general may bring an action for injunctive relief to restrain a violation 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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.103. Civil Penalty

Sec. 602.103.  CIVIL PENALTY.  (a)  The attorney general may bring an action for a civil penalty against a covered entity or health care entity for a violation of this chapter.
(b)  A civil penalty assessed under this section may not be less than $3,000 for each violation.
(c)  If the court in which an action under this section is pending finds that the violations have occurred with a frequency as to constitute a pattern or practice, the court may assess a civil penalty not to exceed $250,000.
(d)  A civil penalty authorized by this section is in addition to any other civil, administrative, or criminal action provided by law, including an action for injunctive relief provided by Section 602.102.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.104. Disciplinary Action

Sec. 602.104.  DISCIPLINARY ACTION.  (a)  In addition to a penalty prescribed by this subchapter, a covered entity that violates this chapter is subject to investigation, disciplinary proceedings, and probation or suspension of the covered entity's license or other form of authorization to engage in business.
(b)  If there is evidence that a covered entity has engaged in a pattern or practice of violating this chapter, the covered entity's license or other form of authorization to engage in business may be revoked.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.105. Exclusion From State Programs

Sec. 602.105.  EXCLUSION FROM STATE PROGRAMS.  If there is evidence that a covered entity has engaged in a pattern or practice of violating this chapter, in addition to the other penalties prescribed by this subchapter, the covered entity shall be excluded from participating in any state-funded health care program.
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 D - Privacy › Chapter 602 - Privacy of Health Information › Subchapter C. Penalties and Enforcement › Section 602.106. Remedies Available

Sec. 602.106.  REMEDIES AVAILABLE.  This subchapter does not affect any right of a person under other law to bring a cause of action or otherwise seek relief with respect to conduct that violates 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.001. Definitions

Sec. 651.001.  DEFINITIONS.  In this chapter:
(1)  "Annual percentage rate" means the annual percentage rate of finance charge determined under the Consumer Credit Protection Act and Regulation Z.
(2)  "Consumer Credit Protection Act" means the Consumer Credit Protection Act of 1970 (15 U.S.C. Section 1601 et seq.;  18 U.S.C. Section 891 et seq.).
(2-a)  "Insurance agent" means a person licensed under Subchapter E, Chapter 981 or Chapter 4051, 4052, 4053, 4054, 4055, 4056, or 4153.
(3)  "Insurance premium finance company" means:
(A)  a person engaged in the business of making loans under this chapter by entering into premium finance agreements with insureds or prospective insureds;
(B)  a person engaged in the business of acquiring premium finance agreements from insurance agents or brokers or from other insurance premium finance companies;  or
(C)  an insurance agent or broker making loans under this chapter who holds premium finance agreements made and delivered by insureds that are payable to the agent or broker or to the agent's or broker's order.
(4)  "Insured" means a person who enters into a premium finance agreement with an insurance premium finance company.
(5)  "Insurer" means an entity organized or authorized to engage in the business of insurance under this code as a capital stock insurance company, title insurance company, reciprocal or interinsurance exchange, Lloyd's plan, fraternal benefit society, mutual or mutual assessment company of any kind, statewide mutual assessment company, local mutual aid association, burial association, county or farm mutual insurance company, fidelity, guaranty, or surety company, or trust company.
(6)  "License holder" means an insurance premium finance company that holds a license issued under Subchapter B.
(7)  "Person" means an individual, partnership, corporation, joint venture, trust, association, or other legal entity, regardless of organization.
(8)  "Premium finance agreement" means an agreement by which an insured or prospective insured promises to pay to an insurance premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent in payment of the premiums on an insurance contract.
(8-a)  "Premium finance agreement servicer" means a person who provides a premium finance company with collection, billing, or other services related to the administration of premium finance agreements.
(9)  "Regulation Z" means the federal regulations adopted under the Consumer Credit Protection Act as 12 C.F.R. Section 226.1 et seq.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 757 (H.B. 2965), Sec. 1, eff. June 17, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.002. Certain Conduct Not Engaging in Business as Insurance Premium Finance Company

Sec. 651.002.  CERTAIN CONDUCT NOT ENGAGING IN BUSINESS AS INSURANCE PREMIUM FINANCE COMPANY.  (a)  The preparation or delivery by an insurance agent of a premium finance agreement or disclosure statement required by Section 651.155 on behalf of the insured does not constitute engaging in business as an insurance premium finance company.
(b)  Subsection (a) does not apply to a premium finance agreement held for the benefit of the insurance agent as provided by Section 651.001(3)(C).
(c)  This chapter does not apply to a health care sharing ministry operated under Chapter 1681.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 455 (S.B. 874), Sec. 3, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.003. Rules

Sec. 651.003.  RULES.  (a)  The commissioner may adopt and enforce rules necessary to administer this chapter.
(b)  The rules may contain classifications, differentiations, or other provisions and provide for adjustments or exceptions for any class of transactions necessary to:
(1)  accomplish the purposes of this chapter;
(2)  prevent circumvention or evasion of this chapter;  or
(3)  facilitate compliance with this chapter.
(c)  A rule adopted by the commissioner may not contain any classification, differentiation, or other provision with respect to any class of transactions or provide for any adjustment or exception for any class of transactions that would result in a less stringent disclosure requirement than required for that class of transactions by the Consumer Credit Protection Act or Regulation Z.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.004. Employment of Examiners and Investigators; Payment of Expenses

Sec. 651.004.  EMPLOYMENT OF EXAMINERS AND INVESTIGATORS;  PAYMENT OF EXPENSES.  The department may:
(1)  employ persons as necessary to examine or investigate and make reports on alleged violations of this chapter and compliance with any other provision of this code by a license holder;
(2)  pay the salaries and expenses of persons described by Subdivision (1) and of all office employees;  and
(3)  pay an expense necessary to enforce 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.005. Deposit and Use of Fees

Sec. 651.005.  DEPOSIT AND USE OF FEES.  (a)  Except as provided by Subsection (b), each fee collected under this chapter:
(1)  shall be deposited to the credit of the Texas Department of Insurance operating account; and
(2)  may be used by the department to enforce this chapter.
(b)  An assessment or fee associated with examination costs, as defined by Section 401.251, shall be deposited to the account described by Section 401.156(a).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 659 (S.B. 1291), Sec. 4, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.006. Assessments

Sec. 651.006.  ASSESSMENTS.  (a)  A license holder shall pay to the department:
(1)  an amount imposed by the department to cover the direct and indirect cost of examinations and investigations made under this chapter;  and
(2)  a proportionate share of the general administrative expense attributable to the regulation of license holders.
(b)  Each amount required by this section is in addition to any investigation or license fee imposed under Subchapter B.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.007. Applicability of Consumer Credit Protection Act and Regulation Z

Sec. 651.007.  APPLICABILITY OF CONSUMER CREDIT PROTECTION ACT AND REGULATION Z.  A transaction that is subject to this chapter is also subject to:
(1)  the Consumer Credit Protection Act;  and
(2)  the applicable provisions of Regulation Z.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter A. General Provisions › Section 651.008. Authority of Certain Property and Casualty Agents to Charge Interest to Certain Persons

Sec. 651.008.  AUTHORITY OF CERTAIN PROPERTY AND CASUALTY AGENTS TO CHARGE INTEREST TO CERTAIN PERSONS.  (a)  Notwithstanding any other law, a general property and casualty agent or a personal lines property and casualty agent who holds a license under Chapter 4051 may enter into a written agreement with a purchaser of insurance from the agent that provides for the payment of interest to the agent on any amount due to the agent for the insurance purchased.  The interest is computed at a rate not to exceed the greater of:
(1)  a rate allowed by Chapter 303, Finance Code; or
(2)  the rate of one percent a month.
(b)  A claim or defense of usury may not be raised in connection with a written agreement under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.06, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.07, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.051. License Required

Sec. 651.051.  LICENSE REQUIRED.  (a)  Unless the person is a license holder, a person may not:
(1)  negotiate, transact, or engage in the business of insurance premium financing in this state; or
(2)  contract for, charge, or receive directly or indirectly on or in connection with an insurance premium financing any charge, regardless of whether the charge is for interest, compensation, consideration, expense, or otherwise, if in the aggregate the amount of the charge exceeds the amount the person would be permitted by law to charge if the person were not a license holder.
(b)  This subchapter does not apply to a person who purchases or otherwise acquires a premium finance agreement from a license holder if the license holder:
(1)  retains the right to service the agreement and to collect payments due under the agreement; and
(2)  remains responsible for servicing the agreement in compliance with this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 757 (H.B. 2965), Sec. 2, eff. June 17, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.052. License Fee

Sec. 651.052.  LICENSE FEE.  (a)  The department shall establish the fee for a license under this subchapter in an amount not to exceed $200.
(b)  The fee for a license issued after June 30 may not exceed $100.
(c)  Section 201.001 applies to fees collected 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.053. Entitlement of Banks and Savings and Loan Associations to License

Sec. 651.053.  ENTITLEMENT OF BANKS AND SAVINGS AND LOAN ASSOCIATIONS TO LICENSE.  (a)  A bank or a savings and loan association is entitled to receive a license under this subchapter if the bank or savings and loan association:
(1)  is engaging in business under the laws of this state or the United States;  and
(2)  notifies the department of its intention to operate under this chapter.
(b)  On receipt of notice under Subsection (a)(2), the department shall immediately issue a license to the bank or savings and loan association.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.054. Application for License; Investigation Fee; Exemption

Sec. 651.054.  APPLICATION FOR LICENSE;  INVESTIGATION FEE;  EXEMPTION.  (a)  An application for a license to engage in the business of insurance premium financing must:
(1)  be in writing on a form prescribed by the commissioner;  and
(2)  be accompanied by a nonrefundable investigation fee in an amount not to exceed $400 as established by the department.
(b)  A person who on January 1, 1980, held a license under Chapter 3, Title 79, Revised Statutes (Article 5069-3.01 et seq., Vernon's Texas Civil Statutes), is not required to pay an investigation fee.
(c)  Section 201.001 applies to fees collected 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.055. Refusal to Issue License

Sec. 651.055.  REFUSAL TO ISSUE LICENSE.  The department may refuse to issue a license to an applicant if the department determines that:
(1)  the financial responsibility, experience, character, or general fitness of the applicant or any person associated with the applicant does not command the confidence of the community and does not warrant the belief that the applicant will engage in the business of insurance premium financing honestly, fairly, and efficiently;  or
(2)  the applicant does not have available for the operation of the business net assets of at least $25,000.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.056. Notice of Action on Application

Sec. 651.056.  NOTICE OF ACTION ON APPLICATION.  Not later than the 90th day after the date the department receives an application under Section 651.054, the department shall notify the applicant that:
(1)  the application has been approved and the department will issue a license to the applicant on payment of the required license fee;  or
(2)  the application has been denied.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.057. Issuance of License

Sec. 651.057.  ISSUANCE OF LICENSE.  After approval of an application and on receipt of the required license fee, the department shall:
(1)  issue a license authorizing the license holder to engage in business as an insurance premium finance company at the location specified in the license holder's application;  and
(2)  send the license to the applicant.
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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.058. Reciprocal License

Sec. 651.058.  RECIPROCAL LICENSE.  The department may waive any license requirement for an applicant who holds a valid license from another state that has license requirements substantially equivalent to the requirements prescribed by 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter B. Authority to Engage in Business › Section 651.059. Issuance of Multiple Licenses

Sec. 651.059.  ISSUANCE OF MULTIPLE LICENSES.  The department may issue a person more than one license under this subchapter but may not issue one person more than 60 of those licenses.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.