Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter N - SERVICES OF PROCESS › Section 7.1410 - Service of Process on Commissioner on Behalf of Unauthorized Persons or Insurers

Current through Reg. 49, No. 28; July 12, 2024
(a) Any act of
				  doing an insurance business as provided by the Insurance Code, Article 1.14-1,
				  §2, by an unauthorized person or insurer is equivalent to and constitutes
				  an irrevocable appointment by that person or insurer of the commissioner to be
				  the lawful attorney for service of that person or insurer. This irrevocable
				  appointment of the commissioner as attorney for service is binding on that
				  person or insurer, on the executor, administrator, or personal representative
				  of that person or insurer, and, if that person or insurer is a corporation, on
				  any successor in interest to that person or insurer. The commissioner may be
				  served any process, notice, or demand arising out of doing an insurance
				  business in this state by that person or insurer, except in an action, suit, or
				  proceeding by the State Board of Insurance or by the State of Texas.
(b) Any act of doing an insurance business as
				  provided by the Insurance Code, Article 1.14-1, §2, by an unauthorized
				  person or insurer signifies the persons's or insurer's agreement that legal
				  process served under this section has the same legal force and validity as
				  personal service of process in this state on that person or insurer or on that
				  person's or insurer's executor, administrator, or personal representative, or,
				  if a corporation, on its successor in interest.
(c) In addition to service under §
										7.1404
				  of this title (relating to Service of Process Procedure for Domestic Insurers
				  Approved To Operate under the Insurance Code, Article 1.28, Foreign and Alien
				  Insurance Companies, Risk Retention Groups, Purchasing Groups, Third Party
				  Administrators, Unauthorized Persons or Insurers, Organizations Formed Under
				  the Insurance Code, Article 3.71, and Surplus Lines Insurers) and subsection
				  (a) of this section, service of process, notice, or demand on an unauthorized
				  person or insurer is valid if served on any person in this state who on behalf
				  of that unauthorized person or insurer is doing any act of an insurance
				  business as provided by the Insurance Code, Article 1.14-1, §2.
(d) A plaintiff or complainant is not
				  entitled to a judgment by default in any action, suit, or proceeding in which
				  process, notice, or demand is served under this section earlier than the 30th
				  day after the date on which the copy of the process, notice, or demand served
				  is mailed to the defendant.
(e) The
				  courts of this state have jurisdiction over any person defined by the Insurance
				  Code, Article 21.49-1, §2(i), who is not resident, domiciled, or
				  authorized to do business in this state and who files a statement with the
				  commissioner under the Insurance Code, Article 21.49-1, and over actions
				  involving any person defined by the Insurance Code, Article 21.49-1,
				  §2(i), arising out of violations of that article. Any person defined by
				  the Insurance Code, Article 21.49-1, §2(i), is considered to have
				  performed acts equivalent to and constituting an appointment of the
				  commissioner by that person to be that person's lawful attorney on whom process
				  in any action, suit, or proceeding arising out of violations of the Insurance
				  Code, Article 21.49-1, may be served. Copies of process shall be served on the
				  commissioner and transmitted by the commissioner by certified or registered
				  mail to that person at that person's last known address. Procedures and fees
				  for service of process are governed by §
										7.1404
				  of this title (relating to Service of Process Procedure for Domestic Insurers
				  Approved To Operate under the Insurance Code, Article 1.28, Foreign and Alien
				  Insurance Companies, Risk Retention Groups, Purchasing Groups, Third Party
				  Administrators, Unauthorized Persons or Insurers, Organizations Formed under
				  the Insurance Code, Article 3.71, and Surplus Lines Insurers).