2023 Texas Statutes › Insurance Code › Title 2 - Texas Department of Insurance › Subtitle B - Discipline and Enforcement › Chapter 101 - Unauthorized Insurance › Subchapter B. Business of Insurance; Exceptions › Section 101.051. Conduct That Constitutes the Business of Insurance

Sec. 101.051.  CONDUCT THAT CONSTITUTES THE BUSINESS OF INSURANCE.  (a)  In this section, "medical expense" includes surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric expenses.
(b)  The following acts in this state constitute the business of insurance in this state:
(1)  making or proposing to make, as an insurer, an insurance contract;
(2)  making or proposing to make, as guarantor or surety, a guaranty or suretyship contract as a vocation and not merely incidental to another legitimate business or activity of the guarantor or surety;
(3)  taking or receiving an insurance application;
(4)  receiving or collecting any consideration for insurance, including:
(A)  a premium;
(B)  a commission;
(C)  a membership fee;
(D)  an assessment; or
(E)  dues;
(5)  issuing or delivering an insurance contract to:
(A)  a resident of this state; or
(B)  a person authorized to do business in this state;
(6)  directly or indirectly acting as an agent for or otherwise representing or assisting an insurer or person in:
(A)  soliciting, negotiating, procuring, or effectuating insurance or a renewal of insurance;
(B)  disseminating information relating to coverage or rates;
(C)  forwarding an insurance application;
(D)  delivering an insurance policy or contract;
(E)  inspecting a risk;
(F)  setting a rate;
(G)  investigating or adjusting a claim or loss;
(H)  transacting a matter after the effectuation of the contract that arises out of the contract; or
(I)  representing or assisting an insurer or person in any other manner in the transaction of insurance with respect to a subject of insurance that is resident, located, or to be performed in this state;
(7)  contracting to provide in this state indemnification or expense reimbursement for a medical expense by direct payment, reimbursement, or otherwise to a person domiciled in this state or for a risk located in this state, whether as an insurer, agent, administrator, trust, or funding mechanism or by another method;
(8)  doing any kind of insurance business specifically recognized as constituting insurance business within the meaning of statutes relating to insurance;
(9)  doing or proposing to do any insurance business that is in substance equivalent to conduct described by Subdivisions (1)-(8) in a manner designed to evade statutes relating to insurance or a claimed exception or exemption to insurance regulation; or
(10)  any other transaction of business in this state by an insurer.
(c)  An act described by Subsection (b) by an unlicensed or unauthorized person or insurer that occurs in this state and that affects a person in another state or jurisdiction constitutes the business of insurance in this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 671, Sec. 2, eff. Sept. 1, 2001;  Acts 2001, 77th Leg., ch. 1419, Sec. 22, eff. June 1, 2003;  Acts 2001, 77th Leg., ch. 1420, Sec. 11.006, eff. Sept. 1, 2001.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809), Sec. 7, eff. September 1, 2021.