reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 545 - HIV Testing › Subchapter O. Sanctions; Penalties; Injunctions › Section 545.703. Criminal Penalty

Sec. 545.703.  CRIMINAL PENALTY.  (a)  A person or entity commits an offense if the person or entity, with criminal negligence, violates Section 545.057 by:
(1)  releasing or disclosing a test result or other information;  or
(2)  allowing a test result or other information to become known.
(b)  An offense under this section is a Class A misdemeanor.
(c)  Each release or disclosure made or allowance of a test result to become known in violation of this chapter constitutes a separate offense.
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 546 - Use of Genetic Testing Information › Subchapter A. General Provisions › Section 546.001. Definitions

Sec. 546.001.  DEFINITIONS.  In this chapter:
(1)  "DNA" means deoxyribonucleic acid.
(2)  "Genetic characteristic" means a scientifically or medically identifiable genetic or chromosomal variation, composition, or alteration that predisposes an individual to a disease, disorder, or syndrome.
(3)  "Genetic information" means information that is:
(A)  obtained from or based on a scientific or medical determination of the presence or absence in an individual of a genetic characteristic;  or
(B)  derived from the results of a genetic test performed on an individual.
(4)  "Genetic test" means a presymptomatic laboratory test of an individual's genes, gene products, or chromosomes that:
(A)  analyzes the individual's DNA, RNA, proteins, or chromosomes;  and
(B)  is performed to identify any genetic variation, composition, or alteration that is associated with the individual's having a predisposition for:
(i)  developing a clinically recognized disease, disorder, or syndrome;  or
(ii)  being a carrier of a clinically recognized disease, disorder, or syndrome.
The term does not include a blood test, cholesterol test, urine test, or other physical test used for a purpose other than determining a genetic or chromosomal variation, composition, or alteration in a specific individual;  a routine physical examination or a routine test performed as part of a physical examination;  a test to determine drug use;  or a test to determine the presence of the human immunodeficiency virus.
(5)  "RNA" means ribonucleic acid.
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 546 - Use of Genetic Testing Information › Subchapter A. General Provisions › Section 546.002. Applicability of Chapter

Sec. 546.002.  APPLICABILITY OF CHAPTER.  This chapter applies only to a health benefit plan that:
(1)  provides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including:
(A)  an individual, group, blanket, or franchise insurance policy or insurance agreement, a group hospital service contract, or an individual or group evidence of coverage that is offered by:
(i)  an insurance company;
(ii)  a group hospital service corporation operating under Chapter 842;
(iii)  a fraternal benefit society operating under Chapter 885;
(iv)  a stipulated premium company operating under Chapter 884; or
(v)  a health maintenance organization operating under Chapter 843; and
(B)  to the extent permitted by the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.), a health benefit plan that is offered by:
(i)  a multiple employer welfare arrangement as defined by Section 3 of that Act;
(ii)  another entity not authorized under this code or another insurance law of this state that directly contracts for health care services on a risk-sharing basis, including a capitation basis; or
(iii)  another analogous benefit arrangement; or
(2)  is offered by an approved nonprofit health corporation that holds a certificate of authority under Chapter 844.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter A. General Provisions › Section 546.003. Exceptions

Sec. 546.003.  EXCEPTIONS.  This chapter does not apply to:
(1)  a plan that provides coverage:
(A)  only for a specified disease;
(B)  only for accidental death or dismemberment;
(C)  for wages or payments in lieu of wages for a period during which an employee is absent from work because of sickness or injury; or
(D)  as a supplement to liability insurance;
(2)  a Medicare supplemental policy as defined by Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);
(3)  workers' compensation insurance coverage;
(4)  medical payment insurance coverage provided under a motor vehicle insurance policy; or
(5)  a long-term care policy, including a nursing home fixed indemnity policy, unless the commissioner determines that the policy provides benefit coverage so comprehensive that the policy is a health benefit plan as described by Section 546.002.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 2, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter B. Genetic Testing and Use of Test Results › Section 546.051. Certain Testing Permitted; Inducement Prohibited

Sec. 546.051.  CERTAIN TESTING PERMITTED; INDUCEMENT PROHIBITED.  (a)  A health benefit plan issuer that requests an applicant for coverage under the plan to submit to a genetic test in connection with the application for coverage for a purpose not prohibited under Section 546.052 must:
(1)  notify the applicant that the test is required;
(2)  disclose to the applicant the proposed use of the test results; and
(3)  obtain the applicant's written informed consent before the test is administered.
(b)  The applicant shall state in the consent form whether the applicant elects to be informed of the test results.  If the applicant elects to be informed, the person or entity that performs the test shall disclose the test results to the applicant and the health benefit plan issuer.  The issuer shall ensure that:
(1)  the applicant receives an interpretation of the test results made by a qualified health care practitioner; and
(2)  a physician or other health care practitioner designated by the applicant receives a copy of the test results.
(c)  A health benefit plan issuer may not use the results of a genetic test conducted in accordance with Subsection (a) to induce the purchase of coverage under the plan.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 3, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter B. Genetic Testing and Use of Test Results › Section 546.052. Improper Use of Test Results; Refusal to Submit to Testing

Sec. 546.052.  IMPROPER USE OF TEST RESULTS; REFUSAL TO SUBMIT TO TESTING.  A health benefit plan issuer may not use genetic information or the refusal of an applicant to submit to a genetic test to reject, deny, limit, cancel, refuse to renew, increase the premiums for, or otherwise adversely affect eligibility for or coverage under the plan.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 4, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter B. Genetic Testing and Use of Test Results › Section 546.053. Testing Related to Pregnancy

Sec. 546.053.  TESTING RELATED TO PREGNANCY.  (a)  In this section, "coerce" means to restrain or dominate a woman's free will by actual or implied:
(1)  force; or
(2)  threat of rejecting, denying, limiting, canceling, refusing to renew, or otherwise adversely affecting eligibility for coverage under a health benefit plan.
(b)  A health benefit plan issuer may not:
(1)  require as a condition of coverage genetic testing of a child in utero without the pregnant woman's consent; or
(2)  use genetic information to coerce or compel a pregnant woman to have an induced abortion.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 5, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter B. Genetic Testing and Use of Test Results › Section 546.054. Destruction of Sample Material; Exceptions

Sec. 546.054.  DESTRUCTION OF SAMPLE MATERIAL;  EXCEPTIONS.  A sample of genetic material obtained from an individual for a genetic test shall be destroyed promptly after the purpose for which the sample was obtained is accomplished unless:
(1)  the sample is retained under a court order;
(2)  the individual authorizes retention of the sample for medical treatment or scientific research;
(3)  the sample was obtained for research that is cleared by an institutional review board and retention of the sample is:
(A)  under a requirement the institutional review board imposes on a specific research project;  or
(B)  authorized by the research participant with institutional review board approval under federal law;  or
(4)  the sample was obtained for a screening test established by the Texas Department of Health under Section 33.011, Health and Safety Code, and performed by that department or a laboratory approved by that department.
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 546 - Use of Genetic Testing Information › Subchapter C. Disclosure of Genetic Information; Confidentiality; Exceptions › Section 546.101. Disclosure of Test Results to Individual Tested

Sec. 546.101.  DISCLOSURE OF TEST RESULTS TO INDIVIDUAL TESTED.  (a)  An individual who submits to a genetic test has the right to know the results of the test.  On the written request by the individual, the health benefit plan issuer or other entity that performed the test shall disclose the test results to:
(1)  the individual; or
(2)  a physician designated by the individual.
(b)  The right to receive information under this section is in addition to any right or requirement established under Sections 546.051 and 546.052.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 6, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter C. Disclosure of Genetic Information; Confidentiality; Exceptions › Section 546.102. Confidentiality of Genetic Information

Sec. 546.102.  CONFIDENTIALITY OF GENETIC INFORMATION.  (a)  Except as provided by Sections 546.103(a) and (b), genetic information is confidential and privileged regardless of the source of the information.
(b)  A person or entity that holds genetic information about an individual may not disclose or be compelled to disclose, by subpoena or otherwise, that information unless the disclosure is specifically authorized by the individual as provided by Section 546.104.
(c)  This section applies to a redisclosure of genetic information by a secondary recipient of the information after disclosure of the information by an initial recipient.  Except as provided by Section 546.103(b), a health benefit plan issuer may not redisclose genetic information unless the redisclosure is consistent with the disclosures authorized by the tested individual under an authorization executed under Section 546.104.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 7, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter C. Disclosure of Genetic Information; Confidentiality; Exceptions › Section 546.103. Exceptions to Confidentiality

Sec. 546.103.  EXCEPTIONS TO CONFIDENTIALITY.  (a)  Subject to Subchapter G, Chapter 411, Government Code, genetic information may be disclosed without an authorization under Section 546.104 if the disclosure is:
(1)  authorized under a state or federal criminal law relating to:
(A)  the identification of individuals;  or
(B)  a criminal or juvenile proceeding, an inquest, or a child fatality review by a multidisciplinary child-abuse team;
(2)  required under a specific order of a state or federal court;
(3)  for the purpose of establishing paternity as authorized under a state or federal law;
(4)  made to provide genetic information relating to a decedent and the disclosure is made to the blood relatives of the decedent for medical diagnosis;  or
(5)  made to identify a decedent.
(b)  A health benefit plan issuer may redisclose genetic information without an authorization under Section 546.104:
(1)  for actuarial or research studies if:
(A)  a tested individual could not be identified in any actuarial or research report; and
(B)  any materials that identify a tested individual are returned or destroyed as soon as reasonably practicable;
(2)  to the department for the purpose of enforcing this chapter; or
(3)  for a purpose directly related to enabling a business decision to be made about:
(A)  purchasing, transferring, merging, or selling all or part of an insurance business; or
(B)  obtaining reinsurance affecting that insurance business.
(c)  A redisclosure authorized under Subsection (b) may contain only information reasonably necessary to accomplish the purpose for which the information is disclosed.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 8, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter C. Disclosure of Genetic Information; Confidentiality; Exceptions › Section 546.104. Authorized Disclosure

Sec. 546.104.  AUTHORIZED DISCLOSURE.  An individual or an individual's legal representative may authorize disclosure of genetic information relating to the individual by an authorization that:
(1)  is written in plain language;
(2)  is dated;
(3)  contains a specific description of the information to be disclosed;
(4)  identifies or describes each person authorized to disclose the genetic information to a health benefit plan issuer;
(5)  identifies or describes the individuals or entities to whom the disclosure or subsequent redisclosure of the genetic information may be made;
(6)  describes the specific purpose of the disclosure;
(7)  is signed by the individual or legal representative and, if the disclosure is made to claim proceeds of an affected life insurance policy, the claimant; and
(8)  advises the individual or legal representative that the individual's authorized representative is entitled to receive a copy of the authorization.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 9, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter D. Enforcement › Section 546.151. Cease and Desist Order

Sec. 546.151.  CEASE AND DESIST ORDER.  (a)  On a finding by the commissioner that a health benefit plan issuer is in violation of this chapter, the commissioner may issue a cease and desist order in the manner provided by Chapter 83.
(b)  If a health benefit plan issuer refuses or fails to comply with a cease and desist order issued under this section, the commissioner may, in the manner provided by this code and other insurance laws of this state, revoke or suspend the issuer's certificate of authority or other authorization to operate a health benefit plan in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 10, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 546 - Use of Genetic Testing Information › Subchapter D. Enforcement › Section 546.152. Administrative Penalty

Sec. 546.152.  ADMINISTRATIVE PENALTY.  A health benefit plan issuer that operates a plan in violation of this chapter is subject to an administrative penalty as provided by Chapter 84.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 670 (S.B. 53), Sec. 11, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 547 - False Advertising by Unauthorized Insurers › Subchapter A. General Provisions › Section 547.001. Definitions

Sec. 547.001.  DEFINITIONS.  In this chapter:
(1)  "Alien or foreign insurer" means an insurance company organized under the laws of:
(A)  a country other than the United States;  or
(B)  a state of the United States other than this state.
(2)  "Resident" includes a domestic, alien, or foreign:
(A)  corporation;
(B)  partnership;  or
(C)  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 547 - False Advertising by Unauthorized Insurers › Subchapter A. General Provisions › Section 547.002. Construction of Chapter

Sec. 547.002.  CONSTRUCTION OF CHAPTER.  This chapter shall be construed liberally.
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 547 - False Advertising by Unauthorized Insurers › Subchapter B. Prohibition; Enforcement › Section 547.051. Acts Prohibited

Sec. 547.051.  ACTS PROHIBITED.  (a)  This section applies only to an insurer's misrepresentation of:
(1)  the insurer's financial condition;
(2)  the terms of an existing or future contract;
(3)  the benefits or advantages promised by an existing or future contract;  or
(4)  the dividends or share of surplus to be received on an existing or future contract.
(b)  An unauthorized alien or foreign insurer may not:
(1)  make, issue, circulate, or cause to be made, issued, or circulated to a resident of this state a misrepresentation in an advertisement, estimate, illustration, circular, pamphlet, or letter that violates Chapter 541;  or
(2)  cause to be made to a resident of this state in a newspaper, magazine, or other publication, or over a radio or television station, a misrepresentation in an announcement or statement that violates Chapter 541.
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 547 - False Advertising by Unauthorized Insurers › Subchapter B. Prohibition; Enforcement › Section 547.052. Notice of Violation to Insurer's Domiciliary State

Sec. 547.052.  NOTICE OF VIOLATION TO INSURER'S DOMICILIARY STATE.  (a)  In this section, the domiciliary state of an alien insurer is the state of entry or the state of the insurer's principal office in the United States.
(b)  If the department has reason to believe that an insurer has engaged in an act prohibited by Section 547.051, the department shall notify, by registered mail, the insurer and the insurance supervisory official of the insurer's domiciliary 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 C - Deceptive, Unfair, and Prohibited Practices › Chapter 547 - False Advertising by Unauthorized Insurers › Subchapter B. Prohibition; Enforcement › Section 547.053. Enforcement Action

Sec. 547.053.  ENFORCEMENT ACTION.  The department shall take action under Chapter 541 against an insurer notified under Section 547.052 if:
(1)  after the 30th day following the date of notice, the insurer has not stopped making, issuing, or circulating or causing to be made, issued, or circulated in this state the false misrepresentations;  and
(2)  the department has reason to believe that:
(A)  the insurer is issuing or delivering insurance contracts to residents of this state or is collecting premiums on those contracts;  and
(B)  a department proceeding regarding the misrepresentations is in the public interest.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter A. General Provisions › Section 548.001. Purpose

Sec. 548.001.  PURPOSE.  (a)  The purpose of this chapter is to provide for protection of the public interest, investors, and shareholders of domestic stock insurers by:
(1)  regulating proxy solicitation by domestic stock insurers;
(2)  regulating transactions by officers, directors, and principal equity security holders of domestic stock insurers;  and
(3)  requiring appropriate reporting of those solicitations and transactions.
(b)  To that end the misuse of information by certain insiders of domestic stock insurers shall be prevented and a full and fair disclosure of all material matters relevant to the exercise of the corporate franchise of a shareholder of such an insurer will be promoted and the free exercise of that franchise will be assured.
(c)  In exercising the authority granted by this chapter to adopt rules, the commissioner shall promote the purposes of this chapter to prevent misuse of information and to encourage good faith dealing and full and fair disclosure.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter A. General Provisions › Section 548.002. Definitions

Sec. 548.002.  DEFINITIONS.  In this chapter:
(1)  "Domestic stock insurer" includes a domestic title insurance company regulated by Title 11 and a stipulated premium company regulated by Chapter 884.
(2)  "Equity security" means:
(A)  a stock or similar security;
(B)  a security that:
(i)  is convertible, with or without consideration, into an equity security;  or
(ii)  carries a warrant or right to subscribe to or purchase an equity security;
(C)  a warrant or right to subscribe to or purchase an equity security;  or
(D)  any other security defined as an equity security in accordance with Section 548.004(a)(1).
(3)  "Federal Securities Exchange Act" means the Securities Exchange Act of 1934 (15 U.S.C. Section 77b et seq.), as amended.
(4)  "Officer" means:
(A)  a president, vice president, treasurer, actuary, secretary, or controller of a domestic stock insurer;  or
(B)  any other person who performs for a domestic stock insurer the functions of an officer described by Paragraph (A).
(5)  "Person" means an individual, corporation, partnership, association, joint-stock company, business trust, or unincorporated organization.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter A. General Provisions › Section 548.003. Rulemaking Authority

Sec. 548.003.  RULEMAKING AUTHORITY.  The commissioner may:
(1)  adopt rules necessary for the execution of the powers and duties of the department or commissioner under this subchapter and Subchapter B;  and
(2)  for that purpose classify domestic stock insurers, securities, and other persons or matters under the jurisdiction of the department or 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 C - Deceptive, Unfair, and Prohibited Practices › Chapter 548 - Insurer Insider Trading and Proxy Regulation › Subchapter A. General Provisions › Section 548.004. Rules Relating to Equity Securities and Exempt Securities

Sec. 548.004.  RULES RELATING TO EQUITY SECURITIES AND EXEMPT SECURITIES.  (a)  If the commissioner considers it necessary or appropriate in the public interest or for the protection of investors, the commissioner by rule may define:
(1)  "equity security" to include a security that is similar in nature to an equity security;  and
(2)  "exempt security" for purposes of this chapter.
(b)  In adopting a rule under Subsection (a)(2), the commissioner may define the term conditionally, on specified terms, or for a stated period.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.101. Definition

Sec. 548.101.  DEFINITION.  In this subchapter, "insider" means a person who:
(1)  is directly or indirectly the beneficial owner of more than 10 percent of any class of an equity security of a domestic stock insurer, other than an exempt security;  or
(2)  is a director or officer of a domestic stock insurer.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.102. Statement of Beneficial Ownership of Equity Securities

Sec. 548.102.  STATEMENT OF BENEFICIAL OWNERSHIP OF EQUITY SECURITIES.  (a)  Not later than the 10th day after the date a person becomes an insider, the insider shall file with the department a statement of the amount of all equity securities of the insurer of which the insider is a beneficial owner.
(b)  If in any month a change occurs in the amount of the equity securities of which the insider is a beneficial owner, the insider shall file with the department not later than the 10th day of the following month a statement that indicates:
(1)  the amount of all equity securities of which the insider is a beneficial owner as of the end of that month;  and
(2)  the changes in the insider's ownership that occurred in that month.
(c)  A statement under this section must be in the form prescribed by the department.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.103. Recovery of Certain Profits

Sec. 548.103.  RECOVERY OF CERTAIN PROFITS.  (a)  The purpose of this section is to prevent the unfair use of information that may be obtained by an insider because of the insider's relationship with the domestic stock insurer.
(b)  Any profit realized by the insider from the purchase and sale or from the sale and purchase of an equity security of the domestic stock insurer within a period of less than six months inures to and is recoverable by the insurer.
(c)  A suit to recover the profit must be brought not later than the second anniversary of the date the profit is realized.  The suit may be instituted at law or in equity by:
(1)  the domestic stock insurer;  or
(2)  the owner of any security of the domestic stock insurer, in the name of and in behalf of the insurer, if the insurer does not:
(A)  bring suit not later than the 60th day after the date a request is made;  or
(B)  diligently prosecute a suit that is timely brought by the insurer.
(d)  Subsection (b) applies regardless of whether:
(1)  the insider intended to hold the equity security purchased for longer than six months;  or
(2)  the insider did not intend to repurchase the sold equity security during the six-month period following the date the insider sold the equity security.
(e)  Subsection (b) does not apply to:
(1)  a transaction in which an equity security was acquired in good faith in connection with a previously contracted debt;
(2)  a transaction in which the beneficial owner of an equity security was not the beneficial owner at both the time of the purchase and the time of the sale, or the sale and purchase, of the security involved;
(3)  a transaction involving an exempt security;
(4)  a transaction that the commissioner by rule exempts from this section because it is beyond the scope of the purpose of this section;  or
(5)  a transaction involving an equity security of a domestic stock insurer that is not held by a dealer in an investment account if the transaction:
(A)  is in the ordinary course of the dealer's business;  and
(B)  is incident to the establishment or maintenance by the dealer of a primary or secondary market, other than on an exchange, as defined by the federal Securities Exchange Act, for the security.
(f)  The commissioner may adopt rules the commissioner considers necessary or appropriate in the public interest to define and prescribe terms and conditions with respect to a security held in an investment account and a transaction made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.104. Sale or Nondelivery of Certain Equity Securities Prohibited

Sec. 548.104.  SALE OR NONDELIVERY OF CERTAIN EQUITY SECURITIES PROHIBITED.  (a)  An insider may not directly or indirectly sell an equity security of the domestic stock insurer if the insider selling the security or the insider's principal:
(1)  does not own the security;  or
(2)  owns the security, but does not:
(A)  deliver the security before the 21st day after the date of the sale;  or
(B)  deposit the security in the mail or another usual channel of transportation before the sixth day after the date of the sale.
(b)  An insider is not considered to have violated Subsection (a)(2) if the insider proves that:
(1)  notwithstanding the exercise of good faith, the insider was unable to make a timely delivery or deposit;  or
(2)  to make a timely delivery or deposit would cause undue inconvenience or expense.
(c)  Subsection (a) does not apply to the sale of:
(1)  an exempt security;  or
(2)  an equity security of a domestic stock insurer that is not held by a dealer in an investment account if the sale:
(A)  is in the ordinary course of the dealer's business;  and
(B)  is incident to the establishment or maintenance by the dealer of a primary or secondary market, other than on an exchange, as defined by the federal Securities Exchange Act, for the security.
(d)  The commissioner may adopt rules implementing Subsection (c) in the manner prescribed by Section 548.103(f).
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.105. Certain Solicitations Prohibited; Disclosure by Insurer

Sec. 548.105.  CERTAIN SOLICITATIONS PROHIBITED;  DISCLOSURE BY INSURER.  (a)  A person, in violation of any rule adopted by the commissioner under this section, may not solicit or permit the use of the person's name to solicit a proxy, consent, or authorization with respect to an equity security, other than an exempt security, of a domestic stock insurer that is not listed on a national securities exchange registered as such under the federal Securities Exchange Act.
(b)  Unless before an annual or other meeting a proxy, consent, or authorization with respect to a security of a domestic stock insurer covered by Subsection (a) is solicited by or on behalf of the management of the insurer from a holder of record of the security in compliance with rules adopted by the commissioner under this section, the insurer shall, in accordance with rules adopted by the commissioner, file with the department information substantially equivalent to the information that would be required to be sent if a solicitation were made.  The insurer shall send the information to each holder of record of the security.
(c)  The commissioner may adopt rules to implement this section that the commissioner considers necessary or appropriate in the public interest or for the protection of investors.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter B. Required Acts; Prohibitions › Section 548.106. Nonapplicability of Subchapter

Sec. 548.106.  NONAPPLICABILITY OF SUBCHAPTER.  (a)  This subchapter does not apply to an equity security of a domestic stock insurer if:
(1)  the security is or is required to be registered under Section 12 of the federal Securities Exchange Act;  or
(2)  the insurer does not have any class of its equity securities held of record by 100 or more persons on the last business day of the year preceding the year in which the equity security would otherwise be subject to this subchapter.
(b)  Sections 548.101-548.104 do not apply to a foreign or domestic arbitrage transaction unless the transaction is made in violation of a rule adopted by the commissioner to accomplish the purposes of this chapter.
(c)  A provision of this subchapter that imposes liability does not apply to an act or omission made in good faith in conformity with a rule adopted by the commissioner.  This subsection applies regardless of whether the rule is subsequently amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter C. Enforcement › Section 548.201. Offenses; Criminal Penalty

Sec. 548.201.  OFFENSES;  CRIMINAL PENALTY.  (a)  A person commits an offense if the person intentionally:
(1)  violates this chapter or a rule adopted under this chapter;  or
(2)  makes or causes to be made a statement that is false or misleading with respect to a material fact in a document required to be filed by this chapter or a rule adopted under this chapter.
(b)  Except as provided by Subsection (c), an offense under this section is punishable by:
(1)  a fine not to exceed $10,000;
(2)  imprisonment for not more than two years;  or
(3)  both the fine and imprisonment.
(c)  A person may not be punished by imprisonment for violating a rule as prescribed by this section if the person proves that the person had no knowledge of the rule.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter C. Enforcement › Section 548.202. Civil Penalty

Sec. 548.202.  CIVIL PENALTY.  (a)  A person who wilfully violates this chapter or a rule adopted under this chapter is liable for a civil penalty of not less than $100 or more than $1,000 for:
(1)  each act of violation;  and
(2)  each day of violation.
(b)  The attorney general, at the request of the commissioner, shall bring a suit in the name of the state to recover the civil penalty.  The suit must be brought:
(1)  in Travis County or the county in which the person resides;
(2)  if more than one person commits the violation, in the county in which any of the persons resides;  or
(3)  in the county in which the violation allegedly occurred.
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 548 - Insurer Insider Trading and Proxy Regulation › Subchapter C. Enforcement › Section 548.203. Injunctive Action

Sec. 548.203.  INJUNCTIVE ACTION.  A suit to enjoin a violation or a threatened violation of this chapter may be brought in any district court in which an action for a civil penalty under Section 548.202 may be brought.
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 549 - Prohibited Practices Relating to Property Insurance › Subchapter A. General Provisions › Section 549.001. Definitions

Sec. 549.001.  DEFINITIONS.  In this chapter:
(1)  "Borrower" means an individual, partnership, corporation, association, or other entity who has or acquires a legal or equitable interest in real or personal property that is or becomes subject to a mortgage, lien, security agreement, deed of trust, or other security instrument.
(2)  "Insurance binder" means a contract that provides insurance coverage pending the issuance of an original insurance policy that will be issued on or before the 30th day after the date the insurance binder is issued.
(3)  "Lender" means an individual, partnership, corporation, association, or other entity, agent, loan agent, servicing agent, or loan or mortgage broker who lends money and receives or otherwise acquires a mortgage, a lien, a deed of trust, or any other security interest in or on any real or personal property as security for the loan.
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 549 - Prohibited Practices Relating to Property Insurance › Subchapter A. General Provisions › Section 549.002. Inapplicability of Chapter to Title Insurance

Sec. 549.002.  INAPPLICABILITY OF CHAPTER TO TITLE INSURANCE.  This chapter does not apply to title 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 549 - Prohibited Practices Relating to Property Insurance › Subchapter A. General Provisions › Section 549.003. Cancellation of Policy After Foreclosure Authorized

Sec. 549.003.  CANCELLATION OF POLICY AFTER FORECLOSURE AUTHORIZED.  In the event of a foreclosure under a deed of trust, the lender may cancel an insurance policy covering the foreclosed property and is entitled to any unearned premiums from the policy if the lender:
(1)  credits the amount of the unearned premiums against any deficiency owed by the borrower;  and
(2)  delivers to the borrower any excess unearned premiums not credited against a deficiency under Subdivision (1).
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 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.051. Fees for Substitution or Replacement of Policy

Sec. 549.051.  FEES FOR SUBSTITUTION OR REPLACEMENT OF POLICY.  (a)  A lender may not require a fee in an amount greater than $10 for the substitution by the borrower of a new insurance policy for another insurance policy in effect, or require a fee for the furnishing by the borrower of a new insurance policy to replace an existing insurance policy on termination of the existing policy, if the new insurance policy is provided through an insurer authorized to engage in business in this state.
(b)  On the sale or transfer of the lender's ownership interest in real or personal property, the lender is subject to the payment of a substitution fee as described by Subsection (a) and may not, directly or indirectly, charge the borrower for the substitution 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 C - Deceptive, Unfair, and Prohibited Practices › Chapter 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.052. Requiring Policy From Particular Source

Sec. 549.052.  REQUIRING POLICY FROM PARTICULAR SOURCE.  A lender may not directly or indirectly require as a condition of the financing or lending of money or the renewal or extension of financing or lending of money that the purchaser or borrower or the successors of the purchaser or borrower obtain an insurance policy or the renewal or extension of an insurance policy covering the property involved in the transaction from or through:
(1)  a particular agent, insurer, or other person;  or
(2)  a particular type or class of agent, insurer, or other 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 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.053. Use of Policy Information

Sec. 549.053.  USE OF POLICY INFORMATION.  (a)  Except as otherwise provided by this section, a lender may not:
(1)  use or permit the use of any information taken from an insurance policy insuring the borrower's property for the purpose of soliciting insurance business from the borrower;  or
(2)  make information taken from an insurance policy insuring the borrower's property available to any other person for any purpose.
(b)  Subsection (a) does not:
(1)  apply if the borrower provides the lender with specific written authority permitting or directing the particular use or disclosure of information before the use or disclosure occurs; or
(2)  prevent a lender who is a licensed general property and casualty agent or a personal lines property and casualty agent from selling insurance to a borrower.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.02, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.054. Requiring Evidence of Insurance Before Termination of Policy

Sec. 549.054.  REQUIRING EVIDENCE OF INSURANCE BEFORE TERMINATION OF POLICY.  A lender may not require a borrower to provide evidence of insurance earlier than the 15th day before the termination date of an existing insurance policy.
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 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.055. Insurance Binder as Evidence of Insurance

Sec. 549.055.  INSURANCE BINDER AS EVIDENCE OF INSURANCE.  (a)  A lender that requires a borrower to secure insurance coverage before the lender will provide a residential mortgage or commercial real estate loan must accept an insurance binder as evidence of the required insurance and may not require the borrower to provide an original insurance policy instead of a binder if:
(1)  the binder is issued by a licensed general property and casualty agent or a personal lines property and casualty agent who is appointed to represent the insurer whose name appears on the binder and who is authorized to issue binders;
(2)  the binder is accompanied by evidence of payment of the required premium; and
(3)  the binder will be replaced by an original insurance policy for the required coverage on or before the 30th day after the date the binder is issued.
(b)  A property and casualty agent who issues an insurance binder under Subsection (a) must, on request, provide the lender with appropriate evidence for purposes of Subsection (a)(1).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.03, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 549 - Prohibited Practices Relating to Property Insurance › Subchapter B. Prohibited Practices › Section 549.0551. Requiring Certain Amounts of Coverage

Sec. 549.0551.  REQUIRING CERTAIN AMOUNTS OF COVERAGE.  (a)  A lender may not require as a condition of financing a residential mortgage or providing other financing arrangements for residential property, including a mobile or manufactured home, that a borrower purchase homeowners insurance coverage, mobile or manufactured home insurance coverage, or other residential property insurance coverage in an amount that exceeds the replacement value of the dwelling and its contents, regardless of the amount of the mortgage or other financing arrangement entered into by the borrower.
(b)  For purposes of this section, a lender may not include the fair market value of the land on which a dwelling is located in the replacement value of the dwelling and its contents.
Added by Acts 2005, 79th Leg., Ch. 69 (H.B. 2761), Sec. 1(a), eff. May 17, 2005; Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.017(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 5 - Protection of Consumer Interests › Subtitle C - Deceptive, Unfair, and Prohibited Practices › Chapter 549 - Prohibited Practices Relating to Property Insurance › Subchapter C. Enforcement and Civil Remedies › Section 549.101. Enforcement Action

Sec. 549.101.  ENFORCEMENT ACTION.  The attorney general, commissioner, or department may institute a proceeding to enforce this chapter and to enjoin any individual, partnership, corporation, association, or other entity from engaging or attempting to engage in any activity in violation of this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.