reglab/statecodes huggingface dataset:
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 651.060. Single Business Location Authorized by License

Sec. 651.060.  SINGLE BUSINESS LOCATION AUTHORIZED BY LICENSE.  A license authorizes the license holder to maintain only one location where the business of insurance premium financing may be conducted.
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 651.061. Appearance of License; Posting

Sec. 651.061.  APPEARANCE OF LICENSE;  POSTING.  (a)  A license must state the name and address of the license holder.
(b)  The license must be conspicuously posted at the location where the license holder engages in the business of insurance premium financing.
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 651.062. Transfer or Assignment of License Prohibited

Sec. 651.062.  TRANSFER OR ASSIGNMENT OF LICENSE PROHIBITED.  A license may not be transferred or assigned.
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 651.063. Term of License

Sec. 651.063.  TERM OF LICENSE.  Unless a staggered renewal system is adopted under Section 651.065, a license is issued for the calendar year and remains valid until December 31 of that year, unless suspended, revoked, or surrendered in accordance with Section 651.204 or 651.206.
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 651.064. Procedure for License Renewal

Sec. 651.064.  PROCEDURE FOR LICENSE RENEWAL.  (a)  A license holder may renew an unexpired license by paying the required renewal fee to the department.
(b)  A person whose license has been expired for 90 days or less may renew the license by paying to the department:
(1)  the required renewal fee;  and
(2)  an additional fee equal to one-half of the original license fee.
(c)  A person whose license has been expired for more than 90 days but less than two years may renew the license by paying to the department:
(1)  all unpaid renewal fees;  and
(2)  an additional fee equal to the original license fee.
(d)  A person whose license has been expired for two years or more may not renew the license.  The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.
(e)  Not later than the 30th day before the date a person's license expires, the department shall send written notice of the impending license expiration to the person at the person's last known address.
(f)  This section may not be construed to prevent the department from denying or refusing to renew a license under an applicable law or a rule adopted by the commissioner.
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 651.065. Staggered Renewal System

Sec. 651.065.  STAGGERED RENEWAL SYSTEM.  (a)  The commissioner by rule may adopt a system under which licenses expire on various dates during the year.
(b)  For a year in which the license expiration date is less than one year from the date of license issuance or the anniversary of that date, the license fee shall be prorated so that each license holder pays only that portion of the license fee allocable to the number of months during which the license is valid.  On each subsequent renewal of the license, a license holder must pay the total renewal fee.
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 C. Regulation of Insurance Premium › Section 651.101. Books, Accounts, and Records

Sec. 651.101.  BOOKS, ACCOUNTS, AND RECORDS.  (a)  A license holder shall maintain books, accounts, and records in sufficient detail to enable a representative of the department to determine whether the license holder is in compliance with this chapter and rules adopted by the commissioner.
(b)  A license holder shall maintain for inspection the license holder's books, accounts, and records, including any cards used in a card system, for at least four years after the date the final entry of any premium finance agreement is recorded in those books, accounts, and records.
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 C. Regulation of Insurance Premium › Section 651.102. Annual Report

Sec. 651.102.  ANNUAL REPORT.  On or before April 1 of each year, a license holder shall file with the department a report containing information required by the department concerning the business and operations of the license holder during the preceding calendar year at each licensed location where the license holder engages in the business of insurance premium financing in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter C. Regulation of Insurance Premium › Section 651.103. Business Name

Sec. 651.103.  BUSINESS NAME.  A license holder may not engage in the business of insurance premium financing under any name other than the name stated on the license.
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 C. Regulation of Insurance Premium › Section 651.104. Business Location

Sec. 651.104.  BUSINESS LOCATION.  A license holder may not engage in the business of insurance premium financing at any location other than the address stated on the license.
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 C. Regulation of Insurance Premium › Section 651.105. Relocation of Place of Business

Sec. 651.105.  RELOCATION OF PLACE OF BUSINESS.  (a)  A license holder who proposes to relocate the place where the holder engages in the business of insurance premium financing shall give written notice of the proposed change to the department.
(b)  If the department approves the proposed relocation, the department shall issue an endorsement to the license holder indicating the change and the date of the change.
(c)  The endorsement authorizes the license holder to engage in the business of insurance premium financing at the new location.  The license holder shall attach the endorsement to the license for that location.
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 C. Regulation of Insurance Premium › Section 651.106. Business Premises

Sec. 651.106.  BUSINESS PREMISES.  (a)  Except as provided by Subsection (b), a license holder may engage in the business of insurance premium financing:
(1)  in any office, suite, room, or place of business in which any other business is solicited or engaged in;  or
(2)  in association or in conjunction with any other business.
(b)  Subsection (a) does not apply if the department:
(1)  determines, after a hearing, that the conduct by the license holder of the other business at the location for which the license was issued has concealed evasions of this chapter;  and
(2)  orders the license holder in writing to stop engaging in the business of insurance premium financing at that location.
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 C. Regulation of Insurance Premium › Section 651.107. Engaging in Business by Mail or Outside the Community

Sec. 651.107.  ENGAGING IN BUSINESS BY MAIL OR OUTSIDE THE COMMUNITY.  This chapter does not prohibit a license holder from engaging in the business of insurance premium financing:
(1)  by mail;  or
(2)  with persons who do not reside in the same community as the licensed location.
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 C. Regulation of Insurance Premium › Section 651.108. Certain Charges Prohibited

Sec. 651.108.  CERTAIN CHARGES PROHIBITED.  In connection with a premium finance agreement entered into under this chapter, an insurance charge or any other charge or fee may not be imposed unless the charge or fee is authorized by 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 C. Regulation of Insurance Premium › Section 651.109. Limitations on Rates and Charges

Sec. 651.109.  LIMITATIONS ON RATES AND CHARGES.  (a)  An insurance premium finance company may not take or receive from an insured a greater rate or charge than is authorized by Chapter 342, Finance Code.
(b)  For purposes of this section, a charge begins on the earlier of:
(1)  the date from which the insurer requires payment of the premium and payment was made to the insurer for the financed policy;  or
(2)  the effective date of the policy.
(c)  The finance charge is computed on the balance of the premiums due after subtracting any down payment made by the insured in accordance with the premium finance agreement.
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 C. Regulation of Insurance Premium › Section 651.111. Deceptive Advertising Prohibited

Sec. 651.111.  DECEPTIVE ADVERTISING PROHIBITED.  (a)  A license holder may not advertise or cause to be advertised in any manner any false, misleading, or deceptive statement or representation with regard to the rates, terms, or conditions of a premium finance agreement.
(b)  If rates or charges are stated in advertising, the license holder must express the rates or charges in terms of a simple annual percentage rate as defined by federal 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter D. Premium Finance Agreements › Section 651.151. Required Form and Contents of Premium Finance Agreement

Sec. 651.151.  REQUIRED FORM AND CONTENTS OF PREMIUM FINANCE AGREEMENT.  (a)  A premium finance agreement must be in writing on a form approved by the commissioner.
(b)  A premium finance agreement must be dated and signed by the insured.  An agreement may be signed on behalf of the insured by the insured's agent if:
(1)  the agreement contains policies for other than personal, family, or household purposes;  and
(2)  the premiums for the policies exceed $1,000.
(c)  A premium finance agreement must contain:
(1)  the name and business address of the insurance agent or broker negotiating the related insurance contract;
(2)  the name and residence or business address of the insured as specified by the insured;
(3)  the name and business location of the insurance premium finance company to which payments are to be made;
(4)  a description of each insurance contract involved;
(5)  the amount of the premium for each insurance contract;
(6)  the total amount of the premiums for all insurance contracts;
(7)  the amount of any down payment;
(8)  the principal balance, which is the difference between the amounts under Subdivisions (6) and (7);
(9)  the total amount of the finance charge, which must describe each amount included and use the term "finance charge";  and
(10)  the balance payable by the insured, which is the sum of the amounts under Subdivisions (8) and (9).
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 D. Premium Finance Agreements › Section 651.152. Other Required Contents

Sec. 651.152.  OTHER REQUIRED CONTENTS.  In addition to the items required by Section 651.151, a premium finance agreement must contain the following, as applicable:
(1)  the finance charge expressed as an annual percentage rate, using the term "annual percentage rate";
(2)  the number of installments required under the agreement;
(3)  the amount of each installment expressed in dollars;
(4)  the due date or period of each installment;
(5)  the amount or method of computing the amount of any default or delinquency charge that is payable in the event of late payment;  and
(6)  the method of computing any unearned portion of the finance charge in the event of prepayment of the obligation.
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 D. Premium Finance Agreements › Section 651.153. Form of Disclosures

Sec. 651.153.  FORM OF DISCLOSURES.  (a)  The disclosures required by Sections 651.151 and 651.152 must be made clearly, conspicuously, and in meaningful sequence.
(b)  If the term "finance charge" or "annual percentage rate" is required to be used, the term must be printed more conspicuously than other required terminology.
(c)  Each numerical amount or percentage must be expressed as a figure and:
(1)  legibly handwritten;  or
(2)  printed in not less than the equivalent of 10-point type, 75/1,000-inch computer type, or elite-size typewritten numerals.
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 D. Premium Finance Agreements › Section 651.154. Consolidation of Increase Attributable to Amendment of Rate Classification

Sec. 651.154.  CONSOLIDATION OF INCREASE ATTRIBUTABLE TO AMENDMENT OF RATE CLASSIFICATION.  (a)  If, in a premium finance agreement, a change in an insured's policy that is caused by an amendment of the rate classification by endorsement or otherwise results in an increased principal balance and the amount under the previous contract has not been fully paid, the subsequent increase, at the insured's option, may be consolidated with the previous contract if the agreement provides for consolidation.
(b)  A consolidation under this section may be accomplished by a memorandum of agreement between the agent and the insured if, before the first scheduled payment date of the amended transaction, the insurance premium finance company provides to the insured the following information in writing:
(1)  the amount of the premium increase;
(2)  the down payment on the increase;
(3)  the principal amount of the increase;
(4)  the total amount of any finance charge on the increase;
(5)  the total of the additional balance due;
(6)  the outstanding balance due under the original agreement;
(7)  the balance due under the consolidated agreement;
(8)  the annual percentage rate of any finance charge on the additional balance due;
(9)  the revised schedule of payments;
(10)  the amount or method of computing the amount of any default, deferment, or similar charge authorized by Chapter 342, Finance Code, that is payable in the event of late payment;  and
(11)  the method of computing any unearned portion of the finance charge in the event of prepayment of the obligation.
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 D. Premium Finance Agreements › Section 651.155. Responsibilities of Insurance Agent

Sec. 651.155.  RESPONSIBILITIES OF INSURANCE AGENT.  An insurance agent shall:
(1)  prepare a premium finance agreement;  and
(2)  deliver to the insured each disclosure statement required by 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 E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter D. Premium Finance Agreements › Section 651.156. Taking of Incomplete Premium Finance Agreement Prohibited

Sec. 651.156.  TAKING OF INCOMPLETE PREMIUM FINANCE AGREEMENT PROHIBITED.  A license holder may not take a premium finance agreement that has not been fully completed and executed at the time the agreement is executed.
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 D. Premium Finance Agreements › Section 651.157. Perfection of Premium Finance Agreement as Secured Transaction: Filing Not Required

Sec. 651.157.  PERFECTION OF PREMIUM FINANCE AGREEMENT AS SECURED TRANSACTION:  FILING NOT REQUIRED.  Filing of a premium finance agreement or a financing statement is not necessary to perfect the agreement as a secured transaction against a creditor, subsequent purchaser, pledgee, encumbrancer, successor, or assign of the insured or any other party.
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 D. Premium Finance Agreements › Section 651.158. Prepayment and Refund

Sec. 651.158.  PREPAYMENT AND REFUND.  (a)  Notwithstanding the provisions of any premium finance agreement to the contrary, an insured may pay the balance due under the agreement in full at any time before the maturity of the final installment of the balance.
(b)  If an insured pays a premium finance agreement in full as authorized by this section and the agreement included an amount for a charge, the insured is entitled to receive for the prepayment by cash or renewal a refund credit in accordance with Subchapter H, Chapter 342, Finance Code, and rules adopted under that subchapter.  If the amount of the credit for prepayment is less than $5, the insured is not entitled to a refund credit.
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. 5, 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 D. Premium Finance Agreements › Section 651.159. Default Charge

Sec. 651.159.  DEFAULT CHARGE.  A premium finance agreement may provide for the payment of a default charge by the insured as provided by Section 342.203, Finance Code, this code, or a rule adopted under those statutes.
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 D. Premium Finance Agreements › Section 651.160. Power of Attorney

Sec. 651.160.  POWER OF ATTORNEY.  A premium finance agreement may contain a power of attorney that enables the insurance premium finance company to cancel any or all of the insurance contracts listed in the agreement as provided by Section 651.161.
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 D. Premium Finance Agreements › Section 651.161. Cancellation of Insurance Contract

Sec. 651.161.  CANCELLATION OF INSURANCE CONTRACT.  (a)  An insurance premium finance company may not cancel an insurance contract listed in a premium finance agreement except as provided by this section for an insured's failure to make a payment at the time and in the amount provided in the agreement.
(b)  The insurance premium finance company must mail to the insured a written notice that the company will cancel the insurance contract because of the insured's default in payment unless the default is cured at or before the time stated in the notice.  The stated time may not be earlier than the 10th day after the date the notice is mailed.
(c)  The insurance premium finance company must also mail a copy of the notice to the insurance agent or broker identified in the premium finance agreement.
(d)  After the time stated in the notice required by Subsection (b), the insurance premium finance company may cancel each applicable insurance contract by mailing a notice of cancellation to the insurer.  Each insurance contract shall be canceled as if the insured had canceled the contract, except that the return of a canceled contract is not required.
(e)  The insurance premium finance company must also mail a notice of cancellation to:
(1)  the insured at the insured's last known address;  and
(2)  the insurance agent or broker identified in the premium finance agreement.
(f)  A statutory, regulatory, or contractual restriction that provides that an insurance contract may not be canceled unless notice is given to a governmental agency, mortgagee, or other third party applies to a cancellation under this section.  The insurer shall:
(1)  give the prescribed notice on behalf of the insurer or the insured to each governmental agency, mortgagee, or other third party on or before the second business day after the date the insurer receives the notice of cancellation from the insurance premium finance company;  and
(2)  determine the effective date of cancellation, taking into consideration the number of days' notice required to complete the cancellation.
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 D. Premium Finance Agreements › Section 651.163. Assignment of Premium Finance Agreement

Sec. 651.163.  ASSIGNMENT OF PREMIUM FINANCE AGREEMENT.  Unless the insured has notice of an actual or intended assignment of a premium finance agreement, payment by an insured under the agreement to the last known holder of the agreement is binding on all subsequent holders or assignees.
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 D. Premium Finance Agreements › Section 651.164. Restrictions on Premium Finance Agreements

Sec. 651.164.  RESTRICTIONS ON PREMIUM FINANCE AGREEMENTS.  (a)  A premium finance agreement may not contain any provision under which, absent default by the insured, the insurance premium finance company holding the agreement may arbitrarily or without reasonable cause accelerate the maturity of all or any part of the amount owing under the agreement.
(b)  For purposes of Subsection (a), reasonable cause includes a proceeding in bankruptcy, receivership, or insolvency instituted by or against the insured or the insolvency of or suspension of business or cessation of the right to engage in business by an insurer writing policies that are financed for the insured under the premium finance agreement.
(c)  A license holder may not take:
(1)  an instrument in which the insured waives any right accruing to the insured under this chapter;
(2)  an instrument that has not been fully completed and executed by the insured;
(3)  an assignment of wages as security for an insurance premium finance agreement entered into under this chapter;
(4)  a lien on real property as security for a premium finance agreement entered into under this chapter, except any lien created by law on the recording of an abstract of judgment;  or
(5)  a confession of judgment or a power of attorney in favor of the license holder or a third person to confess judgment or to appear for an insured in a judicial proceeding.
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 D. Premium Finance Agreements › Section 651.165. Required Notice of Certain Premium Finance Agreements

Sec. 651.165.  REQUIRED NOTICE OF CERTAIN PREMIUM FINANCE AGREEMENTS.  (a)  An insurance premium finance company that enters into a premium finance agreement that includes an assignment or power of attorney shall notify the insurer or the Texas Windstorm Insurance Association, the Texas Automobile Insurance Plan Association, or the Texas Medical Liability Insurance Underwriting Association whose premiums are being financed:
(1)  of the existence of the agreement;  and
(2)  to whom the premium payment has been made.
(b)  An insurance premium finance company shall notify and fund all premiums to a county mutual insurance company unless the insurance premium finance company is authorized in writing by the county mutual insurance company to notify or fund an agent or managing general agent.
(c)  Notice required under this section must be made before the 31st day after the date the premium finance agreement is accepted by the insurance premium finance company.
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 D. Premium Finance Agreements › Section 651.166. Taking, Receiving, or Charging Unauthorized Amount

Sec. 651.166.  TAKING, RECEIVING, OR CHARGING UNAUTHORIZED AMOUNT.  (a)  Taking or receiving from an insured or the charging of an insured by an insurance premium finance company of a charge greater than authorized by this chapter does not invalidate:
(1)  the premium finance agreement;  or
(2)  the principal balance payable under the agreement.
(b)  An action described by Subsection (a) may be adjudged a forfeiture of all charges that:
(1)  are authorized under the premium finance agreement;  or
(2)  the insured has agreed to pay.
(c)  A person who pays an unauthorized charge or the person's legal representative may bring an action against the insurance premium finance company to recover twice the total amount of the charge paid.  The action must be brought within two years after the date the unauthorized charge is paid.
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 D. Premium Finance Agreements › Section 651.167. Effect of License Revocation, Suspension, or Surrender on Premium Finance Agreement

Sec. 651.167.  EFFECT OF LICENSE REVOCATION, SUSPENSION, OR SURRENDER ON PREMIUM FINANCE AGREEMENT.  The revocation, suspension, or surrender of a license does not affect the obligation of an insured under a lawful premium finance agreement previously acquired or held by the person whose license was revoked, suspended, or surrendered.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.201. Examinations and Investigations of License Holders

Sec. 651.201.  EXAMINATIONS AND INVESTIGATIONS OF LICENSE HOLDERS.  (a)  The department may conduct an examination or investigation that is necessary to determine whether a license holder:
(1)  is in compliance with this chapter;  or
(2)  has engaged in conduct that would warrant the revocation or suspension of the license holder's license.
(b)  The department or an authorized representative of the department may:
(1)  require the attendance of any person;
(2)  examine the person under oath;  and
(3)  compel the production of any relevant book, record, account, or document.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter E. Disciplinary Procedures and Penalties; Offenses › Section 651.202. Confidentiality of Reports and Related Material

Sec. 651.202.  CONFIDENTIALITY OF REPORTS AND RELATED MATERIAL.  (a)  A report of an examination or investigation under Section 651.201 and any correspondence or memoranda concerning or arising from the examination or investigation:
(1)  are confidential communications;
(2)  are not subject to subpoena;  and
(3)  may not be made public, except in connection with a hearing under Section 651.204 or an appearance in connection with the hearing.
(b)  Subsection (a) applies to an authenticated copy of a report described by Subsection (a) in the possession of the commissioner, the department, or a license holder.
(c)  Information obtained in the course of an examination or investigation may be made available to another governmental agency if the information involves a matter within the scope or jurisdiction of the agency.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.203. Hearings and Investigations; Subpoena Power

Sec. 651.203.  HEARINGS AND INVESTIGATIONS;  SUBPOENA POWER.  In conducting a hearing or investigation under this chapter, the department or a person designated by the department may:
(1)  administer oaths;
(2)  subpoena witnesses;
(3)  take depositions of witnesses who reside outside of this state in the manner provided for in a civil action in district court;  and
(4)  pay to those witnesses a fee and mileage for attendance as provided for a witness in a civil action in district court.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.204. Revocation or Suspension of License

Sec. 651.204.  REVOCATION OR SUSPENSION OF LICENSE.  After notice and hearing, the department may revoke or suspend a license if:
(1)  the department finds:
(A)  that the license holder has violated this chapter or a rule adopted by the commissioner under this chapter;  or
(B)  the existence of a fact or condition that, if the fact or condition existed at the time of the original application for the license, clearly would have warranted the refusal of the license;  or
(2)  the department learns from any source that the license holder has failed to return all amounts due from an insurance premium finance company to the person whose insurance policy has been canceled as required by Section 651.162.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter E. Disciplinary Procedures and Penalties; Offenses › Section 651.205. Issuance of Revocation or Suspension Order

Sec. 651.205.  ISSUANCE OF REVOCATION OR SUSPENSION ORDER.  If the department revokes or suspends a license, the department shall:
(1)  immediately issue in duplicate a written order of revocation or suspension;
(2)  file one copy of the order in the office of the secretary of state;  and
(3)  mail one copy of the order to the license holder.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.206. Surrender of License; Effect

Sec. 651.206.  SURRENDER OF LICENSE;  EFFECT.  (a)  A license holder may surrender a license by delivering to the department written notice that the license holder surrenders the license.
(b)  The surrender of a license does not affect any civil or criminal liability of the person for an act committed before the surrender.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.207. License Reinstatement

Sec. 651.207.  LICENSE REINSTATEMENT.  The department may reinstate a suspended license or issue a new license to a person whose license has been revoked if no fact or condition exists that clearly would have warranted the refusal to issue the license originally.
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 E. Disciplinary Procedures and Penalties; Offenses › Section 651.208. Offense

Sec. 651.208.  OFFENSE.  (a)  A person commits an offense if the person:
(1)  intentionally, knowingly, recklessly, or negligently engages in the operation of an insurance premium finance company and does not hold a license issued under this chapter;
(2)  intentionally, knowingly, recklessly, or negligently violates this chapter;
(3)  intentionally or knowingly omits to state a material fact necessary to give the commissioner or the department information lawfully required of the person;  or
(4)  refuses to permit an investigation or examination authorized under this chapter.
(b)  An offense under this section is a Class B misdemeanor.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle E - Premium Financing › Chapter 651 - Financing of Insurance Premiums › Subchapter E. Disciplinary Procedures and Penalties; Offenses › Section 651.209. Sanctions; Cease and Desist Orders

Sec. 651.209.  SANCTIONS;  CEASE AND DESIST ORDERS.  In addition to each penalty provided by Sections 651.166 and 651.208, the commissioner or a person designated by the commissioner may:
(1)  order a sanction under Subchapter B, Chapter 82;  or
(2)  issue a cease and desist order under Chapter 83.
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 F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter A. General Provisions › Section 701.001. Definitions

Sec. 701.001.  DEFINITIONS.  In this chapter:
(1)  "Authorized governmental agency" means:
(A)  a municipal, county, or state law enforcement agency of this state or another state or a law enforcement agency of the United States;  or
(B)  the prosecuting attorney of a municipality, county, or judicial district of this state or another state or the prosecuting attorney of the United States.
(2)  "Fraudulent insurance act" means an act that is a violation of a penal law and is:
(A)  committed or attempted while engaging in the business of insurance;
(B)  committed or attempted as part of or in support of an insurance transaction;  or
(C)  part of an attempt to defraud an insurer.
(3)  "Insurer" means a person who is engaged in the business of insurance as a principal or agent.  The term includes:
(A)  an unauthorized insurer;  and
(B)  an entity that is self-insured and provides health care benefits to the entity's employees.
(4)  "Person" means an individual, corporation, organization, governmental entity, business trust or another trust, estate, partnership, joint venture, association, or any other legal entity.
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 F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter A. General Provisions › Section 701.002. Business of Insurance

Sec. 701.002.  BUSINESS OF INSURANCE.  A person is engaged in the business of insurance for purposes of this chapter if the person performs any act described by Subchapter B, Chapter 101.
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 F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter A. General Provisions › Section 701.003. Effect of Chapter

Sec. 701.003.  EFFECT OF CHAPTER.  This chapter does not:
(1)  preempt the authority or relieve the duty of an authorized governmental agency to investigate and prosecute suspected criminal acts;
(2)  prevent or prohibit a person from voluntarily disclosing information to an authorized governmental agency;
(3)  limit powers or duties granted to the commissioner by any other law;  or
(4)  prohibit or limit the authority of an insurer to conduct an independent investigation of suspected insurance claim fraud.
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 F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter A. General Provisions › Section 701.004. Antifraud Education

Sec. 701.004.  ANTIFRAUD EDUCATION.  The commissioner, through the insurance fraud unit, shall develop fraud prevention educational programs and disseminate materials necessary to educate the public effectively regarding antifraud programs.
Added by Acts 2015, 84th Leg., R.S., Ch. 245 (S.B. 783), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter A. General Provisions › Section 701.005. Gifts, Grants, and Donations

Sec. 701.005.  GIFTS, GRANTS, AND DONATIONS.  (a)  The insurance fraud unit may accept gifts, grants, and donations to enable the fraud unit to perform its duties under this chapter.
(b)  The insurance fraud unit may not accept gifts, grants, or donations from a regulated entity.
(c)  All gifts, grants, or donations to the insurance fraud unit shall be:
(1)  deposited to the credit of the department's operating account; and
(2)  distributed to the insurance fraud unit to be used to perform its duties under this chapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 245 (S.B. 783), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter B. Reporting Fraudulent Insurance Acts › Section 701.051. Duty to Report

Sec. 701.051.  DUTY TO REPORT.  (a)  Not later than the 30th day after the date the person makes the determination or reasonably suspects that a fraudulent insurance act has been or is about to be committed in this state, the person:
(1)  shall report the information in writing to the insurance fraud unit of the department, in the format prescribed by the fraud unit or by the National Association of Insurance Commissioners; and
(2)  may also report the information to another authorized governmental agency.
(b)  A report made to the insurance fraud unit constitutes notice to each other authorized governmental agency.
(c)  A person who is a member of an organization primarily dedicated to the detection, investigation, and prosecution of insurance fraud fully complies with the person's obligations under Subsection (a) by authorizing the organization to report on the person's behalf information required to be reported under Subsection (a).  The person retains any liability resulting from the failure of the organization to report in a manner that complies with Subsection (a).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 1282 (H.B. 2388), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter B. Reporting Fraudulent Insurance Acts › Section 701.052. Immunity for Furnishing Information Relating to a Fraudulent Insurance Act

Sec. 701.052.  IMMUNITY FOR FURNISHING INFORMATION RELATING TO A FRAUDULENT INSURANCE ACT.  (a)  A person is not liable in a civil action, including an action for libel or slander, and a civil action may not be brought against the person, for furnishing information relating to a suspected, anticipated, or completed fraudulent insurance act if the information is provided to:
(1)  an authorized governmental agency or the department;
(2)  a law enforcement officer or an agent or employee of the officer;
(3)  the National Association of Insurance Commissioners or an employee of the association;
(4)  a state or federal governmental agency established to detect and prevent fraudulent insurance acts or to regulate the business of insurance or an employee of the agency;
(5)  a special investigative unit of an insurer, including a person who contracts to provide special investigative unit services to the insurer or an employee of the insurer who is responsible for the investigation of suspected fraudulent insurance acts; or
(6)  an organization described by Section 701.051(c), if the person is a member of the organization and:
(A)  the person has reported the information as required by Section 701.051(a); or
(B)  the organization has reported the information to the insurance fraud unit as required by Section 701.051(c) on behalf of the person and in a manner that fully complies with the person's obligations under Section 701.051(a).
(b)  A person may furnish information as described in Subsection (a) orally or in writing, including through publishing, disseminating, or filing a bulletin or report.
(c)  Subsection (a) does not apply to a person who acts with malice, fraudulent intent, or bad faith.
(d)  A person to whom Subsection (a) applies who prevails in a civil action arising from furnishing information as described in Subsection (a) is entitled to attorney's fees and costs.
(e)  This section does not affect any common law or statutory privilege or immunity.
(f)  Repealed by Acts 2005, 79th Leg., Ch. 1282, Sec. 3, eff. September 1, 2005.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 1282 (H.B. 2388), Sec. 3, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 88 (S.B. 918), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter C. Investigations › Section 701.101. Insurance Fraud Unit

Sec. 701.101.  INSURANCE FRAUD UNIT.  (a)  The purpose of the department's insurance fraud unit is to enforce laws relating to fraudulent insurance acts.
(b)  The insurance fraud unit may receive, review, and investigate in a timely manner insurer antifraud reports submitted under Chapter 704.
(c)  The insurance fraud unit shall report annually to the commissioner in writing regarding:
(1)  the number of cases completed by the insurance fraud unit;  and
(2)  recommendations for regulatory and statutory responses to the types of fraudulent activities encountered by the insurance fraud unit.
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 F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter C. Investigations › Section 701.102. Investigation of Certain Acts of Fraud

Sec. 701.102.  INVESTIGATION OF CERTAIN ACTS OF FRAUD.  If the commissioner has reason to believe a person has engaged in, is engaging in, has committed, or is about to commit a fraudulent insurance act, the commissioner may conduct any investigation necessary inside or outside this state to:
(1)  determine whether the act occurred; or
(2)  aid in enforcing laws relating to fraudulent insurance acts, including by providing technical or litigation assistance to other governmental agencies.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 244 (S.B. 782), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle F - Insurance Fraud and Identity Theft › Chapter 701 - Insurance Fraud Investigations › Subchapter C. Investigations › Section 701.103. Disciplinary Action; Report to Other Agencies

Sec. 701.103.  DISCIPLINARY ACTION;  REPORT TO OTHER AGENCIES.  (a)  The commissioner shall take appropriate disciplinary action as provided by this code if the commissioner believes a fraudulent insurance act has occurred.  The commissioner shall report information concerning the commissioner's belief that a person has committed a fraudulent insurance act to an authorized governmental agency.
(b)  The commissioner shall:
(1)  provide all material, documents, reports, complaints, or other evidence to an authorized governmental agency on request;  and
(2)  assist the authorized governmental agency as requested.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.