reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter B. -1. Advertising Requirements › Section 541.087. Advertisements Exempt From Filing Requirements

Sec. 541.087.  ADVERTISEMENTS EXEMPT FROM FILING REQUIREMENTS.An advertisement subject to requirements regarding filing of the advertisement with the department for department review under this code or commissioner rule and that is the same as or substantially similar to an advertisement previously reviewed and accepted by the department is not required to be filed for department review.
Added by Acts 2007, 80th Leg., R.S., Ch. 475 (H.B. 2251), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.101. Examination and Investigation

Sec. 541.101.  EXAMINATION AND INVESTIGATION.  The department may examine and investigate the affairs of a person engaged in the business of insurance in this state to determine whether the person has or is engaged in an unfair method of competition or unfair or deceptive act or practice prohibited by Section 541.003.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.102. Statement of Charges; Notice of Hearing

Sec. 541.102.  STATEMENT OF CHARGES;  NOTICE OF HEARING.  (a)  When the department has reason to believe that a person engaged in the business of insurance in this state has engaged or is engaging in this state in an unfair method of competition or unfair or deceptive act or practice defined by Subchapter B and that a proceeding by the department regarding the charges is in the interest of the public, the department shall issue and serve on the person:
(1)  a statement of the charges;  and
(2)  a notice of the hearing on the charges, including the time and place for the hearing.
(b)  The department may not hold the hearing before the sixth day after the date the notice is served.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.103. Hearing

Sec. 541.103.  HEARING.  A person against whom charges are made under Section 541.102 is entitled at the hearing on the charges to have an opportunity to be heard and show cause why the department should not issue an order requiring the person to cease and desist from the unfair method of competition or unfair or deceptive act or practice described in the charges.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.104. Hearing Procedures

Sec. 541.104.  HEARING PROCEDURES.  (a)  Nothing in this chapter requires the observance of formal rules of pleading or evidence at a hearing under this subchapter.
(b)  At a hearing under this subchapter, the department, on a showing of good cause, shall permit any person to intervene, appear, and be heard by counsel or in person.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.105. Record of Hearing

Sec. 541.105.  RECORD OF HEARING.  (a)  At a hearing under this subchapter, the department may, and at the request of a party to the hearing shall, make a stenographic record of the proceedings and the evidence presented at the hearing.
(b)  If the department does not make a stenographic record and a person seeks judicial review of the decision made at the hearing, the department shall prepare a statement of the evidence and proceeding for use on review.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.106. Compliance With Subpoena

Sec. 541.106.  COMPLIANCE WITH SUBPOENA.  (a)  If a person refuses to comply with a subpoena issued in connection with a hearing under this subchapter or refuses to testify with respect to a matter about which the person may be lawfully interrogated, on application of the department, a district court in Travis County or in the county in which the person resides may order the person to comply with the subpoena or testify.
(b)  A court may punish as contempt a person's failure to obey an order under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.107. Determination of Violation

Sec. 541.107.  DETERMINATION OF VIOLATION.  After a hearing under this subchapter, the department shall determine whether:
(1)  the method of competition or the act or practice considered in the hearing is defined as:
(A)  an unfair method of competition or deceptive act or practice under Subchapter B or a rule adopted under this chapter;  or
(B)  a false, misleading, or deceptive act or practice under Section 17.46, Business & Commerce Code;  and
(2)  the person against whom the charges were made engaged in the method of competition or act or practice in violation of:
(A)  this chapter or a rule adopted under this chapter;  or
(B)  Subchapter E, Chapter 17, Business & Commerce Code, as specified in Section 17.46, Business & Commerce Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.108. Cease and Desist Order

Sec. 541.108.  CEASE AND DESIST ORDER.  On determining that a person committed a violation described by Section 541.107, the department shall:
(1)  make written findings;  and
(2)  issue and serve on the person an order requiring the person to cease and desist from engaging in the method of competition or act or practice determined to be a violation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.109. Modification or Setting Aside of Order

Sec. 541.109.  MODIFICATION OR SETTING ASIDE OF ORDER.  On the notice and in the manner the department determines proper, the department may modify or set aside in whole or in part a cease and desist order issued under Section 541.108 at any time before a petition appealing the order is filed in accordance with Subchapter D, Chapter 36.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.110. Administrative Penalty

Sec. 541.110.  ADMINISTRATIVE PENALTY.  (a)  A person who violates a cease and desist order issued under Section 541.108 is subject to an administrative penalty under Chapter 84.
(b)  In determining whether a person has violated a cease and desist order, the department shall consider the maintenance of procedures reasonably adapted to ensure compliance with the order.
(c)  An administrative penalty imposed under this section may not exceed:
(1)  $1,000 for each violation;  or
(2)  $5,000 for all violations.
(d)  An order of the department imposing an administrative penalty under this section applies only to a violation of the cease and desist order committed before the date the order imposing the penalty is issued.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter C. Determination of Unfair Methods of Competition and Unfair or Deceptive Acts or Practices; Sanctions and Penalties › Section 541.111. Civil Penalty for Violation of Cease and Desist Order

Sec. 541.111.  CIVIL PENALTY FOR VIOLATION OF CEASE AND DESIST ORDER.  (a)  A person who is found by a court to have violated a cease and desist order issued under Section 541.108 is liable to the state for a penalty.  The state may recover the penalty in a civil action.
(b)  The penalty may not exceed $50 unless the court finds the violation to be wilful, in which case the penalty may not exceed $500.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.151. Private Action for Damages Authorized

Sec. 541.151.  PRIVATE ACTION FOR DAMAGES AUTHORIZED.  A person who sustains actual damages may bring an action against another person for those damages caused by the other person engaging in an act or practice:
(1)  defined by Subchapter B to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance;  or
(2)  specifically enumerated in Section 17.46(b), Business & Commerce Code, as an unlawful deceptive trade practice if the person bringing the action shows that the person relied on the act or practice to the person's detriment.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.152. Damages, Attorney's Fees, and Other Relief

Sec. 541.152.  DAMAGES, ATTORNEY'S FEES, AND OTHER RELIEF.  (a)  A plaintiff who prevails in an action under this subchapter may obtain:
(1)  the amount of actual damages, plus court costs and reasonable and necessary attorney's fees;
(2)  an order enjoining the act or failure to act complained of;  or
(3)  any other relief the court determines is proper.
(b)  Except as provided by Subsection (c), on a finding by the trier of fact that the defendant knowingly committed the act complained of, the trier of fact may award an amount not to exceed three times the amount of actual damages.
(c)  Subsection (b) does not apply to an action under this subchapter brought against the Texas Windstorm Insurance Association.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 2, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.153. Frivolous Action

Sec. 541.153.  FRIVOLOUS ACTION.  A court shall award to the defendant court costs and reasonable and necessary attorney's fees if the court finds that an action under this subchapter is groundless and brought in bad faith or brought for the purpose of harassment.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.154. Prior Notice of Action

Sec. 541.154.  PRIOR NOTICE OF ACTION.  (a)  A person seeking damages in an action against another person under this subchapter must provide written notice to the other person not later than the 61st day before the date the action is filed.
(b)  The notice must advise the other person of:
(1)  the specific complaint;  and
(2)  the amount of actual damages and expenses, including attorney's fees reasonably incurred in asserting the claim against the other person.
(c)  The notice is not required if giving notice is impracticable because the action:
(1)  must be filed to prevent the statute of limitations from expiring;  or
(2)  is asserted as a counterclaim.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.155. Abatement

Sec. 541.155.  ABATEMENT.  (a)  A person against whom an action under this subchapter is pending who does not receive the notice as required by Section 541.154 may file a plea in abatement not later than the 30th day after the date the person files an original answer in the court in which the action is pending.
(b)  The court shall abate the action if, after a hearing, the court finds that the person is entitled to an abatement because the claimant did not provide the notice as required by Section 541.154.
(c)  An action is automatically abated without a court order beginning on the 11th day after the date a plea in abatement is filed if the plea:
(1)  is verified and alleges that the person against whom the action is pending did not receive the notice as required by Section 541.154;  and
(2)  is not controverted by an affidavit filed by the claimant before the 11th day after the date the plea in abatement is filed.
(d)  An abatement under this section continues until the 60th day after the date notice is provided in compliance with Section 541.154.
(e)  This section does not apply if Section 541.154(c) applies.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.156. Settlement Offer

Sec. 541.156.  SETTLEMENT OFFER.  (a)  A person who receives notice provided under Section 541.154 or 542A.003 may make a settlement offer during a period beginning on the date notice under Section 541.154 or 542A.003 is received and ending on the 60th day after that date.
(b)  In addition to the period described by Subsection (a), the person may make a settlement offer during a period:
(1)  if mediation is not conducted under Section 541.161, beginning on the date an original answer is filed in the action and ending on the 90th day after that date;  or
(2)  if mediation is conducted under Section 541.161, beginning on the day after the date the mediation ends and ending on the 20th day after that date.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 151 (H.B. 1774), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.157. Contents of Settlement Offer

Sec. 541.157.  CONTENTS OF SETTLEMENT OFFER.  A settlement offer made by a person against whom a claim under this subchapter is pending must include an offer to pay the following amounts, separately stated:
(1)  an amount of money or other consideration, reduced to its cash value, as settlement of the claim for damages;  and
(2)  an amount of money to compensate the claimant for the claimant's reasonable and necessary attorney's fees incurred as of the date of the offer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.158. Rejection of Settlement Offer

Sec. 541.158.  REJECTION OF SETTLEMENT OFFER.  (a)  A settlement offer is rejected unless both parts of the offer required under Section 541.157 are accepted by the claimant not later than the 30th day after the date the offer is made.
(b)  A settlement offer made by a person against whom a claim under this subchapter is pending that complies with this subchapter and is rejected by the claimant may be filed with the court accompanied by an affidavit certifying the offer's rejection.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.159. Limit on Recovery After Settlement Offer

Sec. 541.159.  LIMIT ON RECOVERY AFTER SETTLEMENT OFFER.  (a)  If the court finds that the amount stated in the settlement offer for damages under Section 541.157(1) is the same as, substantially the same as, or more than the amount of damages found by the trier of fact, the claimant may not recover as damages any amount in excess of the lesser of:
(1)  the amount of damages stated in the offer;  or
(2)  the amount of damages found by the trier of fact.
(b)  If the court makes the finding described by Subsection (a), the court shall determine reasonable and necessary attorney's fees to compensate the claimant for attorney's fees incurred before the date and time the rejected settlement offer was made.  If the court finds that the amount stated in the offer for attorney's fees under Section 541.157(2) is the same as, substantially the same as, or more than the amount of reasonable and necessary attorney's fees incurred by the claimant as of the date of the offer, the claimant may not recover any amount of attorney's fees in excess of the amount of fees stated in the offer.
(c)  This section does not apply if the court finds that the offering party:
(1)  could not perform the offer at the time the offer was made;  or
(2)  substantially misrepresented the cash value of the offer.
(d)  The court shall award:
(1)  damages as required by Section 541.152 if Subsection (a) does not apply;  and
(2)  attorney's fees as required by Section 541.152 if Subsection (b) does not apply.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.160. Effect of Settlement Offer

Sec. 541.160.  EFFECT OF SETTLEMENT OFFER.  A settlement offer is not an admission of engaging in an act or practice defined by Subchapter B to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.161. Mediation

Sec. 541.161.  MEDIATION.  (a)  A party may, not later than the 90th day after the date a pleading seeking relief under this subchapter is served, file a motion to compel mediation of the dispute in the manner provided by this section.
(b)  The court shall, not later than the 30th day after the date a motion under this section is filed, sign an order setting the time and place of the mediation.
(c)  The court shall appoint a mediator if the parties do not agree on a mediator.
(d)  The mediation must be held not later than the 30th day after the date the order is signed, unless:
(1)  the parties agree otherwise;  or
(2)  the court determines that additional time not to exceed 30 days is warranted.
(e)  Each party who has appeared in the action, except as agreed to by all parties who have appeared, shall:
(1)  participate in the mediation;  and
(2)  except as provided by Subsection (f), share the mediation fee.
(f)  A party may not compel mediation under this section if the amount of actual damages claimed is less than $15,000 unless the party seeking to compel mediation agrees to pay the costs of the mediation.
(g)  Except as provided by this section, the following apply to the appointment of a mediator and the mediation process provided by this section:
(1)  Section 154.023, Civil Practice and Remedies Code;  and
(2)  Subchapters C and D, Chapter 154, Civil Practice and Remedies Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter D. Private Action for Damages › Section 541.162. Limitations Period

Sec. 541.162.  LIMITATIONS PERIOD.  (a)  A person must bring an action under this chapter before the second anniversary of the following:
(1)  the date the unfair method of competition or unfair or deceptive act or practice occurred;  or
(2)  the date the person discovered or, by the exercise of reasonable diligence, should have discovered that the unfair method of competition or unfair or deceptive act or practice occurred.
(b)  The limitations period provided by Subsection (a) may be extended for 180 days if the person bringing the action proves that the person's failure to bring the action within that period was caused by the defendant's engaging in conduct solely calculated to induce the person to refrain from or postpone bringing the action.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.201. Injunctive Relief

Sec. 541.201.  INJUNCTIVE RELIEF.  (a)  The attorney general may bring an action under this section if the attorney general has reason to believe that:
(1)  a person engaged in the business of insurance in this state is engaging in, has engaged in, or is about to engage in an act or practice defined as unlawful under:
(A)  this chapter or a rule adopted under this chapter;  or
(B)  Section 17.46, Business & Commerce Code;  and
(2)  the action is in the public interest.
(b)  The attorney general may bring the action in the name of the state to restrain by temporary or permanent injunction the person's use of the method, act, or practice.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.202. Venue for Injunctive Action

Sec. 541.202.  VENUE FOR INJUNCTIVE ACTION.  An action for an injunction under this subchapter may be commenced in a district court in:
(1)  the county in which the person against whom the action is brought:
(A)  resides;
(B)  has the person's principal place of business;  or
(C)  is engaging in business;
(2)  the county in which the transaction or a substantial portion of the transaction occurred;  or
(3)  Travis County.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.203. Issuance of Injunction

Sec. 541.203.  ISSUANCE OF INJUNCTION.  (a)  The court may issue an appropriate temporary or permanent injunction.
(b)  The court shall issue the injunction without bond.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.204. Civil Penalty

Sec. 541.204.  CIVIL PENALTY.  In addition to requesting a temporary or permanent injunction under Section 541.201, the attorney general may request a civil penalty of not more than $10,000 for each violation on a finding by the court that the defendant has engaged in or is engaging in an act or practice defined as unlawful under:
(1)  this chapter or a rule adopted under this chapter;  or
(2)  Section 17.46, Business & Commerce Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.205. Compensation or Restoration

Sec. 541.205.  COMPENSATION OR RESTORATION.  The court may make an additional order or judgment as necessary to compensate an identifiable person for actual damages or for restoration of money or property that may have been acquired by means of an enjoined act or practice.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.206. Civil Penalty for Violation of Injunction

Sec. 541.206.  CIVIL PENALTY FOR VIOLATION OF INJUNCTION.  (a)  A person who violates an injunction issued under this subchapter is liable for and shall pay to the state a civil penalty of not more than $10,000 for each violation.
(b)  The attorney general may, in the name of the state, petition the court for recovery of the civil penalty against the person who violates the injunction.
(c)  The court shall consider the maintenance of procedures reasonably adapted to ensure compliance with the injunction in determining whether a person has violated an injunction.
(d)  The court issuing the injunction retains jurisdiction and the cause is continued for the purpose of assessing a civil penalty under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter E. Enforcement by Attorney General › Section 541.207. Remedies Not Exclusive

Sec. 541.207.  REMEDIES NOT EXCLUSIVE.  The remedies provided by this subchapter are:
(1)  not exclusive;  and
(2)  in addition to any other remedy or procedure provided by another law or at common law.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.251. Class Action Authorized

Sec. 541.251.  CLASS ACTION AUTHORIZED.  (a)  If a member of the insurance buying public has been damaged by an unlawful method, act, or practice defined in Subchapter B as an unlawful deceptive trade practice, the department may request the attorney general to bring a class action or the individual damaged may bring an action on the individual's own behalf and on behalf of others similarly situated to recover damages and obtain relief as provided by this subchapter.
(b)  A class action may not be maintained under this subchapter if the department and attorney general have initiated an action under Subchapter G or an action under that subchapter has resulted in a final determination regarding the same act or practice and the same defendant in the action under this subchapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.252. Recovery

Sec. 541.252.  RECOVERY.  A plaintiff who prevails in a class action under this subchapter may recover:
(1)  court costs and attorney's fees reasonable in relation to the amount of work expended in addition to actual damages;
(2)  an order enjoining the act or failure to act;  and
(3)  any other relief the court determines is proper.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.253. Frivolous Action

Sec. 541.253.  FRIVOLOUS ACTION.  The court may award to the defendant court costs and reasonable attorney's fees in relation to the work expended on a finding by the court that a class action under this subchapter was brought by an individual plaintiff in bad faith or for the purpose of harassment.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.254. Statute of Limitations Tolled

Sec. 541.254.  STATUTE OF LIMITATIONS TOLLED.  The filing of a class action under this subchapter tolls the statute of limitations for bringing an action by an individual under Section 541.162.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.255. Prior Notice

Sec. 541.255.  PRIOR NOTICE.  (a)  Not later than the 31st day before the date a class action for damages is commenced under this subchapter, the prospective plaintiff must:
(1)  notify the intended defendant of the complaint;  and
(2)  demand that the defendant provide relief to the prospective plaintiff and others similarly situated.
(b)  The notice must be in writing and be sent by certified or registered mail, return receipt requested, to:
(1)  the place where the transaction occurred;
(2)  the intended defendant's principal place of business in this state;  or
(3)  if notice to the place described by Subdivision (1) or (2) does not effect notice, the office of the secretary of state.
(c)  A copy of the notice must also be sent to the commissioner.
(d)  A class action for injunctive relief may be commenced under this subchapter without complying with Subsection (a).
(e)  A plaintiff in a class action for injunctive relief under this subchapter may, on or after the 31st day after the date the action is commenced and after complying with Subsection (a), amend the complaint without leave of court to include a request for damages.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.256. Prerequisites to Class Action

Sec. 541.256.  PREREQUISITES TO CLASS ACTION.  The court shall permit one or more members of a class to sue or be sued as representative parties on behalf of the class only if:
(1)  the class is so numerous that joinder of all members is impracticable;
(2)  there are questions of law or fact common to the class;
(3)  the claims or defenses of the representative parties are typical of the claims or defenses of the class;  and
(4)  the representative parties will fairly and adequately protect the interests of the class.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.257. Class Actions Maintainable

Sec. 541.257.  CLASS ACTIONS MAINTAINABLE.  (a)  An action may be maintained as a class action under this subchapter if the prerequisites of Section 541.256 are satisfied and, in addition:
(1)  the prosecution of separate actions by or against individual members of the class would create a risk of:
(A)  inconsistent or varying adjudications with respect to individual members of the class that would establish incompatible standards of conduct for the party opposing the class;  or
(B)  adjudication with respect to individual members of the class that would as a practical matter be dispositive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests;
(2)  the party opposing the class has acted or refused to act on grounds generally applicable to the class, making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole;  or
(3)  the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.
(b)  Matters pertinent to a finding under Subsection (a)(3) include:
(1)  the interest of members of the class in individually controlling the prosecution or defense of separate actions;
(2)  the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;
(3)  the desirability or undesirability of concentrating the litigation of the claims in the particular forum;  and
(4)  the difficulties likely to be encountered in the management of a class action.
(c)  In construing this section, the courts of this state shall be guided by the decisions of the federal courts interpreting Rule 23, Federal Rules of Civil Procedure, 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 C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.258. Class Actions: Issues and Subclasses Authorized

Sec. 541.258.  CLASS ACTIONS:  ISSUES AND SUBCLASSES AUTHORIZED.  When appropriate, an action may be brought or maintained as a class action under this subchapter with respect to particular issues or a class may be divided into subclasses and each subclass treated as a class, and the provisions of this subchapter shall be construed and applied accordingly.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.259. Determination Regarding Whether Class Action May Be Maintained

Sec. 541.259.  DETERMINATION REGARDING WHETHER CLASS ACTION MAY BE MAINTAINED.  (a)  As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is to be maintained as a class action under this subchapter.
(b)  An order under this section may be altered or amended before a decision on the merits.
(c)  An order determining whether the action may be maintained as a class action under this subchapter is an interlocutory order that is appealable.  The procedures applicable to accelerated appeals in the Texas Rules of Appellate Procedure apply to the appeal.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.260. Effect of Denial of Class Action

Sec. 541.260.  EFFECT OF DENIAL OF CLASS ACTION.  A court order denying that an action under this subchapter may be brought as a class action does not affect whether an individual may bring the same or a similar action under Subchapter D.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.261. Notice of Class Action

Sec. 541.261.  NOTICE OF CLASS ACTION.  (a)  If an action is permitted as a class action under this subchapter, the court shall direct to the members of the class the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort.
(b)  The notice must contain a statement that:
(1)  the court will exclude from the class a notified member if the member requests exclusion by a specified date;
(2)  the judgment, whether favorable or not, includes all members who do not request exclusion;  and
(3)  a member who does not request exclusion may enter an appearance through counsel.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.262. Procedures in Class Action

Sec. 541.262.  PROCEDURES IN CLASS ACTION.  In a class action under this subchapter, the court may make appropriate orders:
(1)  determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument;
(2)  requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in a manner the court directs to some or all of the members or the attorney general of:
(A)  any step in the action;
(B)  the proposed extent of the judgment;  or
(C)  the opportunity for members to:
(i)  signify whether the members consider the representation to be fair and adequate;
(ii)  intervene and present claims or defenses;  or
(iii)  otherwise come into the action;
(3)  imposing conditions on the representative parties or intervenors;
(4)  requiring that the pleadings be amended to eliminate allegations relating to representation of absent persons, and that the action proceed accordingly;  or
(5)  dealing with similar procedural matters.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.263. Effect of Settlement Offer

Sec. 541.263.  EFFECT OF SETTLEMENT OFFER.  (a)  Damages may not be awarded to a class under this subchapter if, not later than the 30th day after the date the intended defendant receives notice under Section 541.255, the intended defendant provides to the plaintiff by certified or registered mail, return receipt requested, a written settlement offer.
(b)  The settlement offer must include:
(1)  a statement that all persons similarly situated have been adequately identified or a reasonable effort to identify those persons has been made;
(2)  a description of the class identified and the method used to identify that class;
(3)  a statement that all persons identified have been notified that, on request, the intended defendant will provide relief to those persons and all others similarly situated;
(4)  a complete explanation of the relief being afforded;
(5)  a copy of the notice or communication the intended defendant is providing to the members of the class;
(6)  a statement that the relief being afforded the consumer has been or, if the offer is accepted by the consumer, will be given within a stated reasonable time;  and
(7)  a statement that the practice complained of has ceased.
(c)  Except as provided by Subsection (d), an attempt to comply with this section by a person receiving a demand is:
(1)  an offer to compromise;
(2)  not admissible as evidence;  and
(3)  not an admission of engaging in an unlawful act or practice.
(d)  A defendant may introduce evidence of compliance or an attempt to comply with this section for the purpose of:
(1)  establishing good faith;  or
(2)  showing compliance with this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.264. Defenses

Sec. 541.264.  DEFENSES.  Damages may not be awarded in a class action under this subchapter if the defendant:
(1)  proves that the action complained of resulted from a bona fide error, notwithstanding the use of reasonable procedures adopted to avoid an error;  and
(2)  made restitution of any consideration received from any member of the class.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.265. Limitations Period for Damages

Sec. 541.265.  LIMITATIONS PERIOD FOR DAMAGES.  In a class action under this subchapter, damages may not include any damages incurred more than two years before the date the action is commenced.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.266. Disposition

Sec. 541.266.  DISPOSITION.  (a)  A class action under this subchapter may not be dismissed, settled, or compromised without the approval of the court.
(b)  Notice of the proposed dismissal, settlement, or compromise shall be given to all members of the class in the manner the court directs.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 541 - Unfair Methods of Competition and Unfair or Deceptive Acts or Practices › Subchapter F. Class Actions by Attorney General or Private Individual › Section 541.267. Contents of Judgment; Notice

Sec. 541.267.  CONTENTS OF JUDGMENT;  NOTICE.  (a)  The judgment in a class action under this subchapter must describe those to whom the notice under Section 541.261 was directed and who have not requested exclusion and those the court finds to be members of the class.
(b)  The court shall direct to the members of the class the best notice of the judgment practicable under the circumstances, including individual notice to each member who can be identified through reasonable effort.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.