Texas Laws - Insurance Code

INSURANCE CODE (1)(1-click HTML)

TITLE 2. TEXAS DEPARTMENT OF INSURANCE (2)(1-click HTML)

Updated: 08/03/2018 at 18:27:41. Including revisions from the 2017 Texas Legislature. (3)

SUBTITLE A. ADMINISTRATION OF THE TEXAS DEPARTMENT OF INSURANCE (4)(1-click HTML)

CHAPTER 30. GENERAL PROVISIONS (5)(1-click HTML)
Sec. 30.001. PURPOSE OF TITLES 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, AND 20. (6)(1-click HTML)

(a) This title and Titles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 20 are enacted as a part of the state's continuing statutory revision program, begun by the Texas Legislative Council in 1963 as directed by the legislature in the law codified as Section 323.007, Government Code. The program contemplates a topic-by-topic revision of the state's general and permanent statute law without substantive change. (7)

(b) Consistent with the objectives of the statutory revision program, the purpose of this title and Titles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 20 is to make the law encompassed by the titles more accessible and understandable by: (8)

(1) rearranging the statutes into a more logical order; (9)

(2) employing a format and numbering system designed to facilitate citation of the law and to accommodate future expansion of the law; (10)

(3) eliminating repealed, duplicative, unconstitutional, expired, executed, and other ineffective provisions; and (11)

(4) restating the law in modern American English to the greatest extent possible. (12)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 17, eff. June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.001, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1274, Sec. 9, eff. April 1, 2005. (13)

Amended by: (14)

Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 10, eff. April 1, 2007. (15)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.001, eff. April 1, 2009. (16)

Sec. 30.002. CONSTRUCTION. (17)(1-click HTML)

Except as provided by Section 30.003 and as otherwise expressly provided in this code, Chapter 311, Government Code (Code Construction Act), applies to the construction of each provision in this title and in Titles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 20. (18)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 17, eff. June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.001, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1274, Sec. 9, eff. April 1, 2005. (19)

Amended by: (20)

Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 10, eff. April 1, 2007. (21)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.001, eff. April 1, 2009. (22)

Sec. 30.003. DEFINITION OF PERSON. (23)(1-click HTML)

The definition of "person" assigned by Section 311.005, Government Code, does not apply to any provision in this title or in Title 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, or 20. (24)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Acts 2001, 77th Leg., ch. 1419, Sec. 17, eff. June 1, 2003. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 11.001, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1274, Sec. 9, eff. April 1, 2005. (25)

Amended by: (26)

Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 10, eff. April 1, 2007. (27)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.001, eff. April 1, 2009. (28)

Sec. 30.004. REFERENCE IN LAW TO STATUTE REVISED BY TITLE 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, OR 20. (29)(1-click HTML)

A reference in a law to a statute or a part of a statute revised by this title or by Title 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, or 20 is considered to be a reference to the part of this code that revises that statute or part of that statute. (30)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Acts 2001, 77th Leg., ch. 1419, Sec. 17, eff. June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.001, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1274, Sec. 9, eff. April 1, 2005. (31)

Amended by: (32)

Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 10, eff. April 1, 2007. (33)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.001, eff. April 1, 2009. (34)

CHAPTER 31. ORGANIZATION OF DEPARTMENT (35)(1-click HTML)
SUBCHAPTER A. GENERAL PROVISIONS (36)(1-click HTML)
Sec. 31.001. DEFINITIONS. (37)(1-click HTML)

In this code and other insurance laws: (38)

(1) "Commissioner" means the commissioner of insurance. (39)

(2) "Department" means the Texas Department of Insurance. (40)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (41)

Sec. 31.002. DUTIES OF DEPARTMENT. (42)(1-click HTML)

In addition to the other duties required of the Texas Department of Insurance, the department shall: (43)

(1) regulate the business of insurance in this state; (44)

(2) administer the workers' compensation system of this state as provided by Title 5, Labor Code; (45)

(3) ensure that this code and other laws regarding insurance and insurance companies are executed; (46)

(4) protect and ensure the fair treatment of consumers; and (47)

(5) ensure fair competition in the insurance industry in order to foster a competitive market. (48)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (49)

Amended by: (50)

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.051, eff. September 1, 2005. (51)

Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 1.001, eff. September 1, 2011. (52)

Sec. 31.003. COMPOSITION OF DEPARTMENT. (53)(1-click HTML)

The department is composed of the commissioner and other officers and employees required to efficiently implement: (54)

(1) this code; (55)

(2) other insurance laws of this state; and (56)

(3) other laws granting jurisdiction or applicable to the department or the commissioner. (57)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (58)

Sec. 31.004. SUNSET PROVISION. (59)(1-click HTML)

(a) The Texas Department of Insurance is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished September 1, 2023. (60)

(b) Unless continued as provided by Chapter 325, Government Code, the duties of the division of workers' compensation of the Texas Department of Insurance under Title 5, Labor Code, expire September 1, 2021, or another date designated by the legislature. (61)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 1112, Sec. 2.02, eff. Sept. 1, 2003. (62)

Amended by: (63)

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.052, eff. September 1, 2005. (64)

Acts 2005, 79th Leg., Ch. 1227 (H.B. 1116), Sec. 2.05, eff. September 1, 2005. (65)

Acts 2007, 80th Leg., R.S., Ch. 928 (H.B. 3249), Sec. 3.09, eff. June 15, 2007. (66)

Acts 2009, 81st Leg., 1st C.S., Ch. 2 (S.B. 2), Sec. 1.06, eff. July 10, 2009. (67)

Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 1.002, eff. September 1, 2011. (68)

Acts 2011, 82nd Leg., R.S., Ch. 1162 (H.B. 2605), Sec. 1, eff. September 1, 2011. (69)

Acts 2013, 83rd Leg., R.S., Ch. 1279 (H.B. 1675), Sec. 4.02, eff. June 14, 2013. (70)

Sec. 31.005. DEFENSE BY ATTORNEY GENERAL. (71)(1-click HTML)

The attorney general shall defend an action brought against the commissioner or an employee or officer of the department as a result of that person's official act or omission, whether or not at the time of the institution of the action that person has terminated service with the department. (72)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (73)

Sec. 31.006. TEXAS WORKERS' COMPENSATION COMMISSION NOT AFFECTED. (74)(1-click HTML)

This code does not affect the duties imposed by law on the Texas Workers' Compensation Commission. (75)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (76)

Sec. 31.007. REFERENCES TO BOARD. (77)(1-click HTML)

A reference in this code or other law to the State Board of Insurance, the Board of Insurance Commissioners, or an individual commissioner means the commissioner or the department as consistent with the respective duties of the commissioner and the department under this code and other insurance laws. (78)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (79)

SUBCHAPTER B. COMMISSIONER OF INSURANCE (80)(1-click HTML)
Sec. 31.021. CHIEF EXECUTIVE. (81)(1-click HTML)

(a) The commissioner is the department's chief executive and administrative officer. The commissioner shall administer and enforce this code, other insurance laws of this state, and other laws granting jurisdiction or applicable to the department or the commissioner. (82)

(b) The commissioner has the powers and duties vested in the department by: (83)

(1) this code and other insurance laws of this state; and (84)

(2) Title 5, Labor Code, and other workers' compensation insurance laws of this state. (85)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (86)

Amended by: (87)

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.053, eff. September 1, 2005. (88)

Sec. 31.022. APPOINTMENT; TERM. (89)(1-click HTML)

(a) The governor, with the advice and consent of the senate, shall appoint the commissioner. The commissioner serves a two-year term that expires on February 1 of each odd-numbered year. (90)

(b) The governor shall appoint the commissioner without regard to the race, color, disability, sex, religion, age, or national origin of the appointee. (91)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (92)

Sec. 31.023. QUALIFICATIONS. (93)(1-click HTML)

The commissioner must: (94)

(1) be a competent and experienced administrator; (95)

(2) be well informed and qualified in the field of insurance and insurance regulation; and (96)

(3) have at least five years of experience in the administration of business or government or as a practicing attorney or certified public accountant. (97)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 10.01, eff. Jan. 11, 2004. (98)

Sec. 31.024. INELIGIBILITY FOR PUBLIC OFFICE. (99)(1-click HTML)

The commissioner is ineligible to be a candidate for a public elective office in this state, unless the commissioner has resigned and the governor has accepted the resignation. (100)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (101)

Sec. 31.026. COMPENSATION. (102)(1-click HTML)

The commissioner is entitled to compensation as provided by the General Appropriations Act. (103)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (104)

Sec. 31.027. GROUNDS FOR REMOVAL. (105)(1-click HTML)

(a) It is a ground for removal from office if the commissioner: (106)

(1) does not have at the time of appointment the qualifications required by Section 31.023; (107)

(2) does not maintain during service as commissioner the qualifications required by Section 31.023; (108)

(3) violates a prohibition established by Section 33.001, 33.003, 33.004, or 33.005; or (109)

(4) cannot, because of illness or disability, discharge the commissioner's duties for a substantial part of the commissioner's term. (110)

(b) The validity of an action of the commissioner or the department is not affected by the fact that it is taken when a ground for removal of the commissioner exists. (111)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (112)

Sec. 31.028. TRAINING PROGRAM FOR COMMISSIONER. (113)(1-click HTML)

(a) Not later than the 90th day after the date on which the commissioner takes office, the commissioner shall complete a training program that complies with this section. (114)

(b) The training program must provide the commissioner with information regarding: (115)

(1) the legislation that created the department; (116)

(2) the programs operated by the department; (117)

(3) the role and functions of the department; (118)

(4) the rules of the department, with an emphasis on the rules that relate to disciplinary and investigatory authority; (119)

(5) the current budget for the department; (120)

(6) the results of the most recent formal audit of the department; (121)

(7) the requirements of: (122)

(A) the open meetings law, Chapter 551, Government Code; (123)

(B) the public information law, Chapter 552, Government Code; (124)

(C) the administrative procedure law, Chapter 2001, Government Code; and (125)

(D) other laws relating to public officials, including conflict of interest laws; and (126)

(8) any applicable ethics policies adopted by the department or the Texas Ethics Commission. (127)

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 10.04, eff. Jan. 11, 2004. (128)

SUBCHAPTER C. PERSONNEL (129)(1-click HTML)
Sec. 31.041. DEPARTMENT PERSONNEL. (130)(1-click HTML)

(a) Subject to the General Appropriations Act or other law, the commissioner shall appoint deputies, assistants, and other personnel as necessary to carry out the powers and duties of the commissioner and the department under this code, other insurance laws of this state, and other laws granting jurisdiction or applicable to the department or the commissioner. (131)

(b) A person appointed under this section must have the professional, administrative, and insurance experience necessary to qualify the person for the position to which the person is appointed. (132)

(c) A person appointed as an associate or deputy commissioner or to hold an equivalent position must have at least five years of the experience required for appointment as commissioner under Section 31.023. At least two years of that experience must be in work related to the position to be held. (133)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (134)

Sec. 31.042. DIVISION OF RESPONSIBILITIES. (135)(1-click HTML)

The commissioner shall develop and implement policies that clearly define the respective responsibilities of the commissioner and the staff of the department. (136)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (137)

Sec. 31.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (138)(1-click HTML)

(a) The commissioner or the commissioner's designee shall prepare and maintain a written policy statement to ensure implementation of a program of equal employment opportunity under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin. The policy statement must include: (139)

(1) personnel policies, including policies relating to recruitment, evaluation, selection, appointment, training, and promotion of personnel that are in compliance with Chapter 21, Labor Code; (140)

(2) a comprehensive analysis of the department workforce that meets federal and state guidelines; (141)

(3) procedures by which a determination can be made of significant underuse in the department workforce of all persons for whom federal or state guidelines encourage a more equitable balance; and (142)

(4) reasonable methods to appropriately address those areas of significant underuse. (143)

(b) A policy statement prepared under this section must: (144)

(1) cover an annual period; (145)

(2) be updated annually; (146)

(3) be reviewed by the Commission on Human Rights for compliance with Subsection (a); and (147)

(4) be filed with the governor. (148)

(c) The governor shall deliver a biennial report to the legislature based on the information received under Subsection (b). The report may be made separately or as a part of other biennial reports made to the legislature. (149)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (150)

Sec. 31.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. (151)(1-click HTML)

The commissioner shall provide to department employees, as often as necessary, information regarding their: (152)

(1) qualification for office or employment under this code; and (153)

(2) responsibilities under applicable laws relating to standards of conduct for state employees. (154)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (155)

Sec. 31.045. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS. (156)(1-click HTML)

(a) The commissioner or the commissioner's designee shall develop an intra-agency career ladder program. The program must require intra-agency posting of all nonentry level positions concurrently with any public posting. (157)

(b) The commissioner or the commissioner's designee shall develop a system of annual performance evaluations. All merit pay for department employees must be based on the system established under this subsection. (158)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (159)

CHAPTER 32. ADMINISTRATIVE POWERS AND DUTIES (160)(1-click HTML)
SUBCHAPTER A. RECORDS (161)(1-click HTML)
Sec. 32.001. GIVING CERTIFIED COPIES AND CERTIFICATES. (162)(1-click HTML)

(a) On request and on payment of the required fee, the department shall: (163)

(1) certify a copy of a paper or a record in a department office and give the certified copy to any person when the commissioner determines that providing the copy is not prejudicial to the public interest; and (164)

(2) give a certificate as provided by other law. (165)

(b) A fee collected by the department under this section shall be deposited in the general revenue fund to the credit of the Texas Department of Insurance operating account. (166)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (167)

Sec. 32.0015. FILING ARTICLES OF INCORPORATION AND OTHER PAPERS; CERTIFIED COPIES. (168)(1-click HTML)

(a) The department shall file and maintain in a department office: (169)

(1) all insurance companies' acts or articles of incorporation; and (170)

(2) any other paper required by law to be filed with the department. (171)

(b) The department shall provide a certified copy of a document described by Subsection (a)(1) or (2) to a party interested in the document who: (172)

(1) submits an application; and (173)

(2) pays the fee prescribed by law. (174)

Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.002, eff. April 1, 2009. (175)

Sec. 32.002. RECORD OF DEPARTMENT PROCEEDINGS. (176)(1-click HTML)

The department shall maintain a complete record of the department's proceedings. (177)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (178)

Sec. 32.003. STATEMENTS REGARDING CONDITION OF EXAMINED COMPANIES. (179)(1-click HTML)

The department shall maintain a concise statement of the condition of each company or agency visited or examined. (180)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (181)

Sec. 32.004. PUBLICATION OF RESULTS OF EXAMINATION. (182)(1-click HTML)

The department shall publish the results of an examination of a company's affairs if the commissioner determines that publication is in the public interest. (183)

Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.002, eff. April 1, 2009. (184)

SUBCHAPTER B. REPORTS (185)(1-click HTML)
Sec. 32.021. ANNUAL REPORTS. (186)(1-click HTML)

(a) The department shall file annually with the governor and the presiding officer of each house of the legislature a complete and detailed written report that includes: (187)

(1) a description of the commissioner's official acts; (188)

(2) a description of the condition of companies doing business in this state; and (189)

(3) other information that exhibits the affairs of the department. (190)

(b) The annual report required by Subsection (a) must be in the form and reported in the time provided by the General Appropriations Act. (191)

(c) The department shall: (192)

(1) send a copy of the annual report required by Subsection (a) to the insurance commissioner or other similar officer of every state; and (193)

(2) on request, send a copy to any company doing business in this state. (194)

(d) The department shall print a separate premium and loss report that contains and arranges in tabular form the premium and loss information contained in the annual statements for companies doing business in this state. (195)

(e) The department shall file the report required by Subsection (d) with the Legislative Reference Library and the Texas State Library with the annual report required by Subsection (a). (196)

(f) The department shall notify the legislature of the availability of the reports required by this section. (197)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (198)

Amended by: (199)

Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 76, eff. September 1, 2013. (200)

Sec. 32.022. BIENNIAL REPORT TO LEGISLATURE. (201)(1-click HTML)

(a) On or before December 31 of each even-numbered year, the department shall submit to the appropriate committees of each house of the legislature a written report that indicates any needed changes in the laws relating to regulation of the insurance industry or any other industry or occupation under the jurisdiction of the department and that states the reasons for the needed changes. (202)

(b) If the commissioner determines that any capital or surplus requirements established by this code for any insurance companies are inadequate, the department shall: (203)

(1) include in the biennial report specific recommendations relating to the amounts at which the capital or surplus requirements should be set and the findings and evidence on which those recommendations are based; and (204)

(2) submit the biennial report to the governor. (205)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (206)

Sec. 32.023. REPORTS TO OTHER STATES. (207)(1-click HTML)

On request, the department shall provide to the insurance commissioner or other similar officer of another state information relating to a company of this state that does business in the other state if: (208)

(1) the other state has enacted the substantial provisions of the insurance laws of this state; and (209)

(2) the commissioner or other similar officer has a legal duty to obtain the information. (210)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (211)

SUBCHAPTER C. FORMS (212)(1-click HTML)
Sec. 32.041. FORMS. (213)(1-click HTML)

The department shall furnish to the companies required to report to the department the necessary forms for the required statements. (214)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (215)

SUBCHAPTER D. INTERNET ACCESS TO CERTAIN INFORMATION (216)(1-click HTML)
Sec. 32.101. APPLICABILITY OF SUBCHAPTER. (217)(1-click HTML)

This subchapter applies to insurers who comprise the top 25 insurance groups in the national market and who issue residential property insurance or personal automobile insurance policies in this state, including a Lloyd's plan, a reciprocal or interinsurance exchange, a county mutual insurance company, a farm mutual insurance company, the Texas Windstorm Insurance Association, the FAIR Plan Association, and the Texas Automobile Insurance Plan Association. (218)

Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff. May 21, 2007. (219)

Sec. 32.102. INTERNET WEBSITE. (220)(1-click HTML)

(a) The department, in conjunction with the office of public insurance counsel, shall establish and maintain a single Internet website that provides information to enable consumers to make informed decisions relating to the purchase of residential property insurance and personal automobile insurance. The website must include: (221)

(1) a description of each type of residential property insurance policy and personal automobile insurance policy issued in this state, including a comparison of the coverage, exclusions, and restrictions of each policy that allows a side-by-side comparison of the features of the policy forms; (222)

(2) a listing of each insurer writing residential property insurance or personal automobile insurance in this state, indexed by each county or zip code in which the insurer is actively writing that insurance, and a profile of the insurer that includes: (223)

(A) contact information for the insurer, including the insurer's full name, address, and telephone number and the insurer's fax number and e-mail address, if available; (224)

(B) information on rates charged by the insurer, including: (225)

(i) sample rates for different policyholder profiles in each county or zip code; and (226)

(ii) the percentage by which the sample rate has fallen or risen due to filings in the previous 12, 24, and 36 months; (227)

(C) a list of policy forms, exclusions, endorsements, and discounts offered by the insurer; (228)

(D) an indication of whether the insurer uses credit scoring in underwriting, rating, or tiering, and a link to the insurer's credit model or a link explaining how to request the insurer's credit model; (229)

(E) the insurer's financial rating determined by A. M. Best or similar rating organization and an explanation of the meaning and importance of the rating; (230)

(F) a complaint ratio or similar complaint rating system for the insurer for each of the previous three years and an explanation of the meaning of the rating system; and (231)

(G) information, other than information made confidential by law, on the insurer's regulatory and administrative experience with the department, the office of public insurance counsel, and insurance regulatory authorities in other states; and (232)

(3) if feasible, as determined by the commissioner and the public insurance counsel: (233)

(A) a side-by-side comparison of credit scoring models, including factors, key variables, and weights, of residential property insurers in this state; and (234)

(B) a side-by-side comparison of credit scoring models, including factors, key variables, and weights, of private passenger automobile insurers in this state. (235)

(b) The Internet website required by this section may link to and be linked from the department's and the office of public insurance counsel's main websites, but must have its own Internet address distinct from the address of those main sites. (236)

(c) The department and the office of public insurance counsel may include on the Internet website or by link to another site any other information the department and the office of public insurance counsel determine is helpful to consumers of residential property insurance or personal automobile insurance or that the department or the office of public insurance counsel is authorized or required to publish under this code that relates to residential property insurance or personal automobile insurance. (237)

Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff. May 21, 2007. (238)

Sec. 32.103. PUBLIC INFORMATION CONCERNING INTERNET WEBSITE. (239)(1-click HTML)

The department shall publicize the existence of the Internet website required by this subchapter. (240)

Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff. May 21, 2007. (241)

Sec. 32.104. DUTIES OF INSURER. (242)(1-click HTML)

(a) On the request of the department, an insurer shall provide to the department any information the department and the office of public insurance counsel determine is reasonable or necessary to fulfill the department's and the office of the public insurance counsel's duties under this subchapter. (243)

(b) An insurer shall provide in a conspicuous manner with each residential property insurance or personal automobile insurance policy issued in this state notice of the Internet website required by this subchapter. The commissioner shall determine the form and content of the notice. (244)

Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff. May 21, 2007. (245)

SUBCHAPTER E. RULES REGARDING USE OF ADVISORY COMMITTEES (246)(1-click HTML)
Sec. 32.151. RULEMAKING AUTHORITY. (247)(1-click HTML)

(a) The commissioner shall adopt rules, in compliance with Section 39.003 of this code and Chapter 2110, Government Code, regarding the purpose, structure, and use of advisory committees by the commissioner, the state fire marshal, or department staff, including rules governing an advisory committee's: (248)

(1) purpose, role, responsibility, and goals; (249)

(2) size and quorum requirements; (250)

(3) qualifications for membership, including experience requirements and geographic representation; (251)

(4) appointment procedures; (252)

(5) terms of service; (253)

(6) training requirements; and (254)

(7) duration. (255)

(b) An advisory committee must be structured and used to advise the commissioner, the state fire marshal, or department staff. An advisory committee may not be responsible for rulemaking or policymaking. (256)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 2.001, eff. September 1, 2011. (257)

Sec. 32.152. PERIODIC EVALUATION. (258)(1-click HTML)

The commissioner shall by rule establish a process by which the department shall periodically evaluate an advisory committee to ensure its continued necessity. The department may retain or develop committees as appropriate to meet changing needs. (259)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 2.001, eff. September 1, 2011. (260)

Sec. 32.153. COMPLIANCE WITH OPEN MEETINGS ACT. (261)(1-click HTML)

A department advisory committee must comply with Chapter 551, Government Code. (262)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 2.001, eff. September 1, 2011. (263)

CHAPTER 33. STANDARDS OF CONDUCT (264)(1-click HTML)
Sec. 33.001. APPLICATION OF LAW RELATING TO ETHICAL CONDUCT. (265)(1-click HTML)

The commissioner and each employee or agent of the department is subject to the code of ethics and the standard of conduct imposed by Chapter 572, Government Code, and any other law regulating the ethical conduct of state officers and employees. (266)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (267)

Sec. 33.002. INSURANCE BUSINESS INTEREST; SERVICE AS COMMISSIONER. (268)(1-click HTML)

(a) A person is not eligible for appointment as commissioner if the person, the person's spouse, or any other person who resides in the same household as the person: (269)

(1) is registered, certified, or licensed by the department; (270)

(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving funds from the department; (271)

(3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving funds from the department; or (272)

(4) uses or receives a substantial amount of tangible goods, services, or funds from the department, other than compensation or reimbursement authorized by law. (273)

(b) A person is not eligible for appointment as commissioner if the person: (274)

(1) is a stockholder, director, officer, attorney, agent, or employee of an insurance company, insurance agent, insurance broker, or insurance adjuster; or (275)

(2) is directly or indirectly interested in a business described by Subdivision (1). (276)

(c) Subsection (b) does not apply to: (277)

(1) a person solely because the person is insured by an insurer or is the beneficiary of insurance; or (278)

(2) a person who: (279)

(A) is appointed as a receiver, liquidator, supervisor, or conservator of an insurer; or (280)

(B) is an employee of a receiver, liquidator, supervisor, or conservator of an insurer with respect to duties under that employment. (281)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (282)

Sec. 33.003. INSURANCE BUSINESS INTEREST; EMPLOYEE. (283)(1-click HTML)

(a) A person who is a director, officer, attorney, agent, or employee of an insurance company, insurance agent, insurance broker, or insurance adjuster may not be employed by the department. (284)

(b) A person who resides in the same household as a person who is an officer, managerial employee, or paid consultant in the insurance industry may not be employed in an exempt salary position as defined by the General Appropriations Act. (285)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (286)

Sec. 33.004. TRADE ASSOCIATIONS. (287)(1-click HTML)

(a) A person who is an officer, employee, or paid consultant of a trade association in the field of insurance may not be: (288)

(1) the commissioner; or (289)

(2) an employee of the department who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule. (290)

(b) A person who is the spouse of an officer, manager, or paid consultant of a trade association in the field of insurance may not be: (291)

(1) the commissioner; or (292)

(2) an employee of the department who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule. (293)

(c) In this section, "trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. (294)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (295)

Sec. 33.005. LOBBYING ACTIVITIES. (296)(1-click HTML)

A person may not serve as the commissioner or act as the general counsel to the commissioner if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the department. (297)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (298)

Sec. 33.006. FORMER SERVICE. (299)(1-click HTML)

A person may not serve as the commissioner if the person served as a member of the State Board of Insurance. (300)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (301)

Sec. 33.007. PROHIBITED REPRESENTATION. (302)(1-click HTML)

(a) A person who served as the commissioner, the general counsel to the commissioner, or the public insurance counsel, or as an employee of the State Office of Administrative Hearings who was involved in hearing cases under this code, another insurance law of this state, or Title 5, Labor Code, commits an offense if the person represents another person in a matter before the department or receives compensation for services performed on behalf of another person regarding a matter pending before the department during the one-year period after the date the person ceased to be the commissioner, the general counsel to the commissioner, the public insurance counsel, or an employee of the State Office of Administrative Hearings. (303)

(b) A person who served as a member of the State Board of Insurance or as a staff employee of a member of the State Board of Insurance, or who served as the commissioner, the general counsel to the commissioner, or the public insurance counsel or as an employee of the department or the State Office of Administrative Hearings, commits an offense if, after the person ceased to serve, the person represents another person or receives compensation for services performed on behalf of another person regarding a matter with which the person was directly concerned during the person's service. For purposes of this subsection, a person was directly concerned with a matter if the person had personal involvement with the matter or if the matter was within the scope of the person's official responsibility. (304)

(c) An offense under this section is a Class A misdemeanor. (305)

(d) This section does not apply to a department employee whose position is eliminated as a direct result of a reduction in the department's workforce. (306)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (307)

Amended by: (308)

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.054, eff. September 1, 2005. (309)

CHAPTER 34. IMMUNITY FROM LIABILITY (310)(1-click HTML)
Sec. 34.001. PERSONAL IMMUNITY. (311)(1-click HTML)

A person who is the commissioner or an employee of the department is not personally liable in a civil action for: (312)

(1) an act performed in good faith within the scope of that person's authority; or (313)

(2) damages caused by an official act or omission of that person unless the act or omission is corrupt or malicious. (314)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (315)

Sec. 34.002. IMMUNITY FOR FURNISHING INFORMATION RELATING TO FRAUD. (316)(1-click HTML)

(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 suspected, anticipated, or completed fraudulent insurance acts if the information is provided to or received from: (317)

(1) the commissioner or an employee of the department; (318)

(2) a law enforcement agency of this state, of another state, or of the United States or an employee of the agency; (319)

(3) the National Association of Insurance Commissioners or an employee of the association; or (320)

(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. (321)

(b) A person may furnish information as described in Subsection (a) orally or in writing, including through publishing, disseminating, or filing bulletins or reports. (322)

(c) Subsection (a) does not apply to a person who acts with malice, fraudulent intent, or bad faith. (323)

(d) A person to whom Subsection (a) applies who prevails in a civil action arising from the furnishing of information as described in Subsection (a) is entitled to attorney's fees and costs if the action was not substantially justified. In this subsection, "substantially justified" means there was a reasonable basis in law or fact to bring the action at the time the action was initiated. (324)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (325)

Sec. 34.003. IMMUNITY FOR INVESTIGATIONS AND RELATED REPORTS. (326)(1-click HTML)

(a) A person who is the commissioner or an employee, agent, or designee of the department is not liable in a civil action, including an action for libel or slander, because of: (327)

(1) an investigation of a violation of this code or an alleged fraudulent insurance act; or (328)

(2) the publication or dissemination of an official report related to the investigation. (329)

(b) Subsection (a) does not apply to a person who acts with malice. (330)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (331)

Sec. 34.004. IMMUNITY FOR USE OF ANNUAL STATEMENT INFORMATION. (332)(1-click HTML)

(a) A person is not liable in a civil action, including an action for libel or slander, for collecting, reviewing, analyzing, disseminating, or reporting information collected from annual statements filed under Chapter 802 if the person is: (333)

(1) the department, the commissioner, or an employee of the department; (334)

(2) a member or employee of or delegate to the National Association of Insurance Commissioners or an authorized committee, subcommittee, or task force of that association; or (335)

(3) another person who is responsible for collecting, reviewing, analyzing, and disseminating information from filed annual statement convention blanks. (336)

(b) Subsection (a) does not apply to a person who acts with malice. (337)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (338)

Amended by: (339)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.001, eff. April 1, 2009. (340)

Sec. 34.005. EFFECT OF CHAPTER ON OTHER IMMUNITY. (341)(1-click HTML)

This chapter does not affect or modify any common law or statutory privilege or immunity. (342)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (343)

CHAPTER 35. ELECTRONIC TRANSACTIONS (344)(1-click HTML)
Sec. 35.001. DEFINITIONS. (345)(1-click HTML)

In this chapter: (346)

(1) "Conduct business" includes engaging in or transacting any business in which a regulated entity is authorized to engage or is authorized to transact under the law of this state. (347)

(2) "Regulated entity" means each insurer, organization, person, or program regulated by the department, including: (348)

(A) a domestic or foreign, stock or mutual, life, health, or accident insurance company; (349)

(B) a domestic or foreign, stock or mutual, fire or casualty insurance company; (350)

(C) a Mexican casualty company; (351)

(D) a domestic or foreign Lloyd's plan; (352)

(E) a domestic or foreign reciprocal or interinsurance exchange; (353)

(F) a domestic or foreign fraternal benefit society; (354)

(G) a domestic or foreign title insurance company; (355)

(H) a stipulated premium company; (356)

(I) a nonprofit legal service corporation; (357)

(J) a health maintenance organization; (358)

(K) a statewide mutual assessment company; (359)

(L) a local mutual aid association; (360)

(M) a local mutual burial association; (361)

(N) an association exempt under Section 887.102; (362)

(O) a nonprofit hospital, medical, or dental service corporation, including a company subject to Chapter 842; (363)

(P) a county mutual insurance company; (364)

(Q) a farm mutual insurance company; and (365)

(R) an agency or agent of an insurer, organization, person, or program described by this subdivision. (366)

(3) "Deliver by electronic means" means: (367)

(A) deliver to an e-mail address at which a party has consented to receive notices, documents, or information; or (368)

(B) post on an electronic network or Internet website accessible by an electronic device, including a computer, mobile device, or tablet, and deliver notice of the posting to an e-mail address at which the party has consented to receive notices. (369)

(4) "Party" means a recipient, including an applicant, insured, policyholder, enrollee, or annuity contract holder, of a notice or document or of information required as part of an insurance transaction. (370)

(5) "Written communication" means a notice or document or other information provided in writing. (371)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 6.001, eff. September 1, 2011. (372)

Amended by: (373)

Acts 2013, 83rd Leg., R.S., Ch. 602 (S.B. 1074), Sec. 1, eff. September 1, 2013. (374)

Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.001, eff. September 1, 2017. (375)

Sec. 35.002. CONSTRUCTION WITH OTHER LAW. (376)(1-click HTML)

(a) Notwithstanding any other provision of this code, a regulated entity may conduct business electronically in accordance with this chapter and the rules adopted under Section 35.004. (377)

(b) To the extent of any conflict between another provision of this code and a provision of this chapter, the provision of this chapter controls. (378)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 6.001, eff. September 1, 2011. (379)

Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. (380)(1-click HTML)

A regulated entity may conduct business electronically to the same extent that the entity is authorized to conduct business otherwise if before the conduct of business each party to the business agrees to conduct the business electronically. (381)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 6.001, eff. September 1, 2011. (382)

Sec. 35.004. MINIMUM STANDARDS FOR REGULATED ENTITIES ELECTRONICALLY CONDUCTING BUSINESS WITH CONSUMERS. (383)(1-click HTML)

(a) Subject to Subsection (c), a notice to a party or other written communication with a party required in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means only if the delivery, storage, or presentment complies with Chapter 322, Business & Commerce Code. (384)

(b) Delivery of a written communication in compliance with this section is equivalent to any delivery method required by law, including delivery by first class mail, first class mail, postage prepaid, or certified mail. (385)

(c) A written communication may be delivered by electronic means to a party by a regulated entity under this section if: (386)

(1) the party affirmatively consented to delivery by electronic means and has not withdrawn the consent; (387)

(2) the party, before giving consent, is provided with a clear and conspicuous statement informing the party of: (388)

(A) any right or option the party may have for the written communication to be provided or made available in paper or another nonelectronic form; (389)

(B) the right of the party to withdraw consent under this section and any conditions or consequences imposed if consent is withdrawn; (390)

(C) whether the party's consent applies: (391)

(i) only to a specific transaction for which the written communication must be given; or (392)

(ii) to identified categories of written communications that may be delivered by electronic means during the course of the relationship between the party and the regulated entity; (393)

(D) the means, after consent is given, by which a party may obtain a paper copy of a written communication delivered by electronic means; and (394)

(E) the procedure a party must follow to: (395)

(i) withdraw consent under this section; and (396)

(ii) update information needed for the regulated entity to contact the party electronically; and (397)

(3) the party: (398)

(A) before giving consent, is provided with a statement identifying the hardware and software requirements for the party's access to and retention of a written communication delivered by electronic means; and (399)

(B) consents electronically or confirms consent electronically in a manner that reasonably demonstrates that the party can access a written communication in the electronic form used to deliver the communication. (400)

(d) After consent of the party is given, in the event a change in the hardware or software requirements to access or retain a written communication delivered by electronic means creates a material risk that the party may not be able to access or retain a subsequent written communication to which the consent applies, the regulated entity shall: (401)

(1) provide the party with a statement: (402)

(A) identifying the revised hardware and software requirements for access to and retention of a written communication delivered by electronic means; and (403)

(B) disclosing the right of the party to withdraw consent without the imposition of any condition or consequence that was not disclosed under Subsection (c)(2)(B); and (404)

(2) comply with Subsection (c)(3). (405)

(e) This section does not affect requirements for content or timing of any required written communication. (406)

(f) If a written communication provided to a party expressly requires verification or acknowledgment of receipt, the written communication may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt. (407)

(g) The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party may not be denied solely due to the failure to obtain electronic consent or confirmation of consent of the party in accordance with Subsection (c)(3)(B). (408)

(h) A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a written communication delivered by electronic means to the party before the withdrawal of consent is effective. A withdrawal of consent is effective within a reasonable period of time after the date of the receipt by the regulated entity of the withdrawal. Failure by a regulated entity to comply with Subsection (d) may be treated by the party as a withdrawal of consent. (409)

(i) If the consent of a party to receive a written communication by electronic means is on file with a regulated entity before September 1, 2013, and if the entity intends to deliver to the party written communications under this section, then before the entity may deliver by electronic means additional written communications, the entity must notify the party of: (410)

(1) the written communications that may be delivered by electronic means that were not previously delivered by electronic means; and (411)

(2) the party's right to withdraw consent to have written communications delivered by electronic means. (412)

(j) Except as otherwise provided by law, an oral communication or a recording of an oral communication may not qualify as a written communication delivered by electronic means for purposes of this chapter. (413)

(k) If a signature on a written communication is required by law to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the notary public or other authorized person and the other required information are attached to or logically associated with the signature or written communication. (414)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 6.001, eff. September 1, 2011. (415)

Amended by: (416)

Acts 2013, 83rd Leg., R.S., Ch. 602 (S.B. 1074), Sec. 2, eff. September 1, 2013. (417)

Sec. 35.0045. RULES. (418)(1-click HTML)

The commissioner shall adopt rules necessary to implement and enforce this chapter. (419)

Added by Acts 2013, 83rd Leg., R.S., Ch. 602 (S.B. 1074), Sec. 2, eff. September 1, 2013. (420)

Sec. 35.005. EXEMPTION FROM CERTAIN FEDERAL LAWS. (421)(1-click HTML)

This chapter modifies, limits, or supersedes the provisions of the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) as authorized by Section 102 of that Act (15 U.S.C. Section 7002). (422)

Added by Acts 2013, 83rd Leg., R.S., Ch. 602 (S.B. 1074), Sec. 3, eff. September 1, 2013. (423)

CHAPTER 36. DEPARTMENT RULES AND PROCEDURES (424)(1-click HTML)
SUBCHAPTER A. RULES (425)(1-click HTML)
Sec. 36.001. GENERAL RULEMAKING AUTHORITY. (426)(1-click HTML)

(a) The commissioner may adopt any rules necessary and appropriate to implement the powers and duties of the department under this code and other laws of this state. (427)

(b) Rules adopted under this section must have general and uniform application. (428)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 206, Sec. 15.01, eff. June 11, 2003. (429)

Sec. 36.002. ADDITIONAL RULEMAKING AUTHORITY. (430)(1-click HTML)

The commissioner may adopt reasonable rules that are: (431)

(1) necessary to effect the purposes of a provision of: (432)

(A) Subchapter B, Chapter 5; (433)

(B) Subchapter C, Chapter 1806; (434)

(C) Subchapter A, Chapter 2301; (435)

(D) Chapter 251, as that chapter relates to casualty insurance and fidelity, guaranty, and surety bond insurance; (436)

(E) Chapter 253; (437)

(F) Chapter 2008, 2251, or 2252; or (438)

(G) Subtitle B, Title 10; or (439)

(2) appropriate to accomplish the purposes of a provision of: (440)

(A) Section 37.051(a), 403.002, 501.159, 941.003(b)(1) or (c), or 942.003(b)(1) or (c); (441)

(B) Subchapter H, Chapter 544; (442)

(C) Chapter 251, as that chapter relates to: (443)

(i) automobile insurance; (444)

(ii) casualty insurance and fidelity, guaranty, and surety bond insurance; (445)

(iii) fire insurance and allied lines; (446)

(iv) workers' compensation insurance; or (447)

(v) aircraft insurance; (448)

(D) Chapter 5, 252, 253, 254, 255, 256, 426, 493, 494, 1804, 1805, 1806, 2171, 6001, 6002, or 6003; (449)

(E) Subtitle B, C, D, E, F, H, or I, Title 10; (450)

(F) Section 417.008, Government Code; or (451)

(G) Chapter 2154, Occupations Code. (452)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 11, eff. April 1, 2007. (453)

Amended by: (454)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.002, eff. April 1, 2009. (455)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.0591(d), eff. September 1, 2007. (456)

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.0591(d), eff. September 1, 2007. (457)

Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.01, eff. September 1, 2017. (458)

Sec. 36.003. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (459)(1-click HTML)

The commissioner may not adopt rules restricting advertising or competitive bidding by a person regulated by the department except to prohibit false, misleading, or deceptive practices by the person. (460)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (461)

Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (462)(1-click HTML)

(a) Except as provided by Subsection (c) and Section 36.005, the department may not require an insurer to comply with a rule, regulation, directive, or standard adopted by the National Association of Insurance Commissioners, including a rule, regulation, directive, or standard relating to policy reserves, unless application of the rule, regulation, directive, or standard is expressly authorized by statute. (463)

(b) For purposes of Subsection (a), a version of a rule, regulation, directive, or standard is expressly authorized by statute if: (464)

(1) the statute explicitly authorizes the commissioner to adopt rules consistent with the rule, regulation, directive, or standard; or (465)

(2) that version is the latest version of the rule, regulation, directive, or standard on the date that the statute was enacted. (466)

(c) The commissioner may adopt a rule to require compliance with a rule, regulation, directive, or standard adopted by the National Association of Insurance Commissioners if: (467)

(1) the commissioner finds the rule is technical or nonsubstantive in nature or necessary to preserve the department's accreditation; and (468)

(2) before the adoption of the rule, the commissioner provides the standing committees of the senate and house of representatives with primary jurisdiction over the department with written notice of the commissioner's intent to adopt the rule. (469)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 206, Sec. 15.02, eff. June 11, 2003. (470)

Amended by: (471)

Acts 2017, 85th Leg., R.S., Ch. 752 (S.B. 1450), Sec. 1, eff. September 1, 2017. (472)

Sec. 36.005. INTERIM RULES TO COMPLY WITH FEDERAL REQUIREMENTS. (473)(1-click HTML)

(a) The commissioner may adopt rules to implement state responsibility in compliance with a federal law or regulation or action of a federal court relating to a person or activity under the jurisdiction of the department if: (474)

(1) federal law or regulation, or an action of a federal court, requires: (475)

(A) a state to adopt the rules; or (476)

(B) action by a state to ensure protection of the citizens of the state; (477)

(2) the rules will avoid federal preemption of state insurance regulation; or (478)

(3) the rules will prevent the loss of federal funds to this state. (479)

(b) The commissioner may adopt a rule under this section only if the federal action requiring the adoption of a rule occurs or takes effect between sessions of the legislature or at such time during a session of the legislature that sufficient time does not remain to permit the preparation of a recommendation for legislative action or permit the legislature to act. A rule adopted under this section shall remain in effect only until 30 days following the end of the next session of the legislature unless a law is enacted that authorizes the subject matter of the rule. If a law is enacted that authorizes the subject matter of the rule, the rule will continue in effect. (480)

Added by Acts 2003, 78th Leg., ch. 206, Sec. 15.03, eff. June 11, 2003. (481)

Sec. 36.007. RULES RELATING TO AGREEMENTS LIMITING STATE AUTHORITY TO REGULATE INSURANCE PROHIBITED; EFFECT OF AGREEMENT. (482)(1-click HTML)

(a) The commissioner may not adopt or enforce a rule that implements an interstate, national, or international agreement that: (483)

(1) infringes on the authority of this state to regulate the business of insurance in this state; and (484)

(2) was not approved by the legislature. (485)

(b) An agreement described by Subsection (a) has no effect on the authority of this state to regulate the business of insurance in this state unless the agreement is approved by the legislature. (486)

Added by Acts 2017, 85th Leg., R.S., Ch. 752 (S.B. 1450), Sec. 2, eff. September 1, 2017. (487)

SUBCHAPTER B. DEPARTMENT PROCEDURES (488)(1-click HTML)
Sec. 36.101. APPLICABILITY OF CERTAIN LAWS. (489)(1-click HTML)

Except as specifically provided by law, the department is subject to Chapters 2001 and 2002, Government Code. (490)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (491)

Sec. 36.102. SUMMARY PROCEDURES FOR ROUTINE MATTERS. (492)(1-click HTML)

(a) The commissioner by rule may: (493)

(1) create a summary procedure for routine matters; and (494)

(2) designate department activities that otherwise would be subject to Chapter 2001, Government Code, as routine matters to be handled under the summary procedure. (495)

(b) An activity may be designated as a routine matter only if the activity is: (496)

(1) voluminous; (497)

(2) repetitive; (498)

(3) believed to be noncontroversial; and (499)

(4) of limited interest to anyone other than persons immediately involved in or affected by the proposed department action. (500)

(c) The rules may establish procedures different from those contained in Chapter 2001, Government Code. The procedures must require, for each party directly involved, notice of a proposed negative action not later than the fifth day before the date the action is proposed to be taken. (501)

(d) The rules may provide for the delegation of authority to take action on a routine matter to a salaried employee of the department designated by the commissioner. (502)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (503)

Sec. 36.103. REVIEW OF ACTION ON ROUTINE MATTER. (504)(1-click HTML)

(a) A person directly or indirectly affected by an action of the commissioner or the department on a routine matter taken under the summary procedure adopted under Section 36.102 is entitled to a review of the action under Chapter 2001, Government Code. (505)

(b) The person must apply to the commissioner not later than the 60th day after the date of the action to be entitled to the review. (506)

(c) The timely filing of the application for review immediately stays the action pending a hearing on the merits. (507)

(d) The commissioner may adopt rules relating to an application for review under this section and consideration of the application. (508)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (509)

Sec. 36.104. INFORMAL DISPOSITION OF CERTAIN CONTESTED CASES. (510)(1-click HTML)

(a) The commissioner may, on written agreement or stipulation of each party and any intervenor, informally dispose of a contested case in accordance with Section 2001.056, Government Code, notwithstanding any provision of this code that requires a hearing before the commissioner. (511)

(b) This section does not apply to a contested case under Title 5, Labor Code. (512)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (513)

Amended by: (514)

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.055, eff. September 1, 2005. (515)

Sec. 36.105. NEWSPAPER PUBLICATION. (516)(1-click HTML)

Except as otherwise provided by law, a notice or other matter that this code requires to be published must be published for three successive weeks in two newspapers that: (517)

(1) are printed in this state; and (518)

(2) have a general circulation in this state. (519)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (520)

Sec. 36.106. WAIVER OF CERTAIN NOTICE REQUIREMENTS. (521)(1-click HTML)

The commissioner may, on written agreement or stipulation of each party and any intervenor, waive or modify the notice publication requirement of Section 822.059, 822.157, 841.060, or 884.058. (522)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (523)

Amended by: (524)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.003, eff. April 1, 2009. (525)

Sec. 36.107. ACCEPTANCE OF ACTUARIAL OPINION. (526)(1-click HTML)

An opinion of an actuary requested by the commissioner under this code, another insurance law of this state, or a rule of the commissioner is presumed to be accurate and valid, and the department shall accept the opinion unless controverted. The department may employ, at the department's expense, another actuary to provide an alternative opinion. (527)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (528)

Sec. 36.108. FILING DATE OF REPORT, FINANCIAL STATEMENT, OR PAYMENT DELIVERED BY POSTAL SERVICE. (529)(1-click HTML)

Except as otherwise specifically provided, for a report, financial statement, or payment that is required to be filed or made in the offices of the commissioner and that is delivered by the United States Postal Service to the offices of the commissioner after the date on which the report, financial statement, or payment is required to be filed or made, the date of filing or payment is the date of: (530)

(1) the postal service postmark stamped on the cover in which the report, financial statement, or payment is mailed; or (531)

(2) any other evidence of mailing authorized by the postal service reflected on the cover in which the report, financial statement, or payment is mailed. (532)

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 10, eff. April 1, 2005. (533)

Sec. 36.109. RENEWAL EXTENSION FOR CERTAIN PERSONS PERFORMING MILITARY SERVICE. (534)(1-click HTML)

(a) The department may extend the renewal period for a license, permit, certificate of authority, certificate of registration, or other authorization issued by the department to engage in an activity regulated under this code or other insurance laws of this state for a person who is unable in a timely manner to comply with renewal requirements, including any applicable continuing education requirements, because the person was on active duty in a combat theater of operations in the United States armed forces. (535)

(b) A person must submit a written application for an extension under this section to the department. (536)

(c) The department shall exempt a person who receives an extension under this section from any increased fee or other penalty otherwise imposed for failure to renew in a timely manner. (537)

(d) The commissioner may adopt rules as necessary to implement this section. (538)

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 11, eff. April 1, 2005. (539)

Sec. 36.110. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION POLICY. (540)(1-click HTML)

(a) The commissioner shall develop and implement a policy to encourage the use of: (541)

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of department rules; and (542)

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the department's jurisdiction. (543)

(b) The department's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. (544)

(c) The commissioner shall: (545)

(1) coordinate the implementation of the policy adopted under Subsection (a); (546)

(2) provide training as needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and (547)

(3) collect data concerning the effectiveness of those procedures. (548)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 1.003, eff. September 1, 2011. (549)

SUBCHAPTER C. GENERAL SUBPOENA POWERS; WITNESSES AND PRODUCTION OF RECORDS (550)(1-click HTML)
Sec. 36.151. DEFINITION. (551)(1-click HTML)

In this subchapter, "records" includes books, accounts, documents, papers, correspondence, and other material. (552)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (553)

Sec. 36.152. SUBPOENA AUTHORITY. (554)(1-click HTML)

(a) With respect to a matter that the commissioner has authority to consider or investigate, the commissioner may issue a subpoena applicable throughout the state that requires: (555)

(1) the attendance and testimony of a witness; and (556)

(2) the production of records. (557)

(b) In connection with a subpoena, the commissioner may require attendance and production of records before the commissioner or the commissioner's designee: (558)

(1) at the department's offices in Austin; or (559)

(2) at another place designated by the commissioner. (560)

(c) In connection with a subpoena, the commissioner or the commissioner's designee may administer an oath, examine a witness, or receive evidence. (561)

(d) The commissioner must personally sign and issue the subpoena. (562)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.001, eff. Sept. 1, 2003. (563)

Sec. 36.153. SERVICE OF SUBPOENA. (564)(1-click HTML)

(a) A subpoena issued by the commissioner may be served, at the discretion of the commissioner, by the commissioner, an authorized agent of the commissioner, a sheriff, or a constable. (565)

(b) The sheriff's or constable's fee for serving the subpoena is the same as the fee paid to the sheriff or constable for similar services. (566)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (567)

Sec. 36.154. ENFORCEMENT OF SUBPOENA. (568)(1-click HTML)

(a) On application of the commissioner in the case of disobedience of a subpoena or the contumacy of a person, a district court may issue an order requiring a person subpoenaed to obey the subpoena, to give evidence, or to produce records if the person has refused to do so. (569)

(b) A court may punish as contempt the failure to obey a court order under Subsection (a). (570)

(c) If the court orders compliance with the subpoena or finds the person in contempt for failure to obey the order, the commissioner, or the attorney general when representing the department, may recover reasonable costs and fees, including attorney's fees and investigative costs incurred in the proceedings. (571)

(d) An application under Subsection (a) must be made in a district court in Travis County or in the county in which the subpoena is served. (572)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (573)

Sec. 36.155. COMPENSATION FOR ATTENDANCE. (574)(1-click HTML)

A person required by subpoena to attend a proceeding before the commissioner or the commissioner's designee is entitled to: (575)

(1) reimbursement for mileage in the same amount for each mile as the mileage travel allowance for a state employee for traveling to or from the place where the person's attendance is required, if the place is more than 25 miles from the person's place of residence; and (576)

(2) a fee for each day or part of a day the person is required to be present as a witness that is equal to the greater of: (577)

(A) $10; or (578)

(B) a state employee's per diem travel allowance. (579)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (580)

Sec. 36.156. OUT-OF-STATE MATERIALS. (581)(1-click HTML)

(a) A person with materials located outside this state that are requested by the commissioner may make the materials available for examination at the place where the materials are located. (582)

(b) The commissioner may designate a representative, including an official of the state in which the materials are located, to examine the materials. (583)

(c) The commissioner may respond to a similar request from an official of another state or of the United States. (584)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (585)

Sec. 36.157. USE AS EVIDENCE IN CERTAIN CASES. (586)(1-click HTML)

(a) This section applies to testimony or records resulting in a case involving an allegation of engaging in the business of insurance without a license. (587)

(b) On certification by the commissioner under official seal, testimony taken or records produced under this subchapter and held by the department are admissible in evidence in a case without: (588)

(1) prior proof of correctness; and (589)

(2) proof, other than the certificate of the commissioner, that the testimony or records were received from the person testifying or producing the records. (590)

(c) The certified records, or certified copies of the records, are prima facie evidence of the facts disclosed by the records. (591)

(d) This section does not limit any other provision of this subchapter or any law that makes provision for the admission or evidentiary value of certain evidence. (592)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (593)

Sec. 36.158. ACCESS TO INFORMATION. (594)(1-click HTML)

(a) A record or other evidence acquired under a subpoena under this subchapter is not a public record for the period the commissioner considers reasonably necessary to: (595)

(1) complete the investigation; (596)

(2) protect the person being investigated from unwarranted injury; or (597)

(3) serve the public interest. (598)

(b) The record or other evidence is not subject to a subpoena, other than a grand jury subpoena, until: (599)

(1) the record or other evidence is released for public inspection by the commissioner; or (600)

(2) after notice and a hearing, a district court determines that obeying the subpoena would not jeopardize the public interest and any investigation by the commissioner. (601)

(c) Except for good cause, a district court order under Subsection (b) may not apply to: (602)

(1) a record or communication received from another law enforcement or regulatory agency; or (603)

(2) the internal notes, memoranda, reports, or communications made in connection with a matter that the commissioner has the authority to consider or investigate. (604)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (605)

Sec. 36.159. PRIVILEGED AND CONFIDENTIAL RECORDS AND INFORMATION; PROTECTIVE ORDERS. (606)(1-click HTML)

(a) A record subpoenaed and produced under this subchapter that is otherwise privileged or confidential by law remains privileged or confidential until admitted into evidence in an administrative hearing or a court. (607)

(b) The commissioner may issue a protective order relating to the confidentiality or privilege of a record described by Subsection (a) to restrict the use or distribution of the record: (608)

(1) by a person; or (609)

(2) in a proceeding other than a proceeding before the commissioner. (610)

(c) Specific information relating to a particular policy or claim is privileged and confidential while in the possession of an insurance company, organization, association, or other entity holding a certificate of authority from the department and may not be disclosed by the entity to another person, except as specifically provided by law. (611)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (612)

Sec. 36.160. COOPERATION WITH LAW ENFORCEMENT. (613)(1-click HTML)

On request, the commissioner may furnish records or other evidence obtained by subpoena to: (614)

(1) a law enforcement agency of this state, another state, or the United States; or (615)

(2) a prosecuting attorney of a municipality, county, or judicial district of this state, another state, or the United States. (616)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (617)

Sec. 36.161. CERTAIN SUBPOENAS ISSUED TO FINANCIAL INSTITUTIONS. (618)(1-click HTML)

A subpoena issued to a bank or other financial institution as part of a criminal investigation is not subject to Section 30.007, Civil Practice and Remedies Code. (619)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (620)

Sec. 36.162. EFFECT ON CONTESTED CASE. (621)(1-click HTML)

Sections 36.152, 36.156, 36.158, 36.160, and 36.161 do not affect the conduct of a contested case under Chapter 2001, Government Code. (622)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (623)

SUBCHAPTER D. JUDICIAL REVIEW (624)(1-click HTML)
Sec. 36.201. ACTION SUBJECT TO JUDICIAL REVIEW. (625)(1-click HTML)

An action of the commissioner subject to judicial review under this subchapter includes a decision, order, rate, rule, form, or administrative or other ruling of the commissioner. (626)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (627)

Sec. 36.2015. ACTIONS UNDER TITLE 5, LABOR CODE. (628)(1-click HTML)

Notwithstanding Section 36.201, a decision, order, form, or administrative or other rule of the commissioner of workers' compensation under Title 5, Labor Code, or a rule adopted by the commissioner of insurance under Title 5, Labor Code, is subject to judicial review as provided by Title 5, Labor Code. (629)

Added by Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.056, eff. September 1, 2005. (630)

Sec. 36.202. PETITION FOR JUDICIAL REVIEW. (631)(1-click HTML)

(a) After failing to get relief from the commissioner, any insurance company or other party at interest who is dissatisfied with an action of the commissioner may file a petition for judicial review against the commissioner as defendant. (632)

(b) The petition must state the particular objection to the action and may be filed only in a district court in Travis County. (633)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (634)

Sec. 36.203. JUDICIAL REVIEW. (635)(1-click HTML)

Judicial review of the action is under the substantial evidence rule and shall be conducted under Chapter 2001, Government Code. (636)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (637)

Sec. 36.204. ACTION NOT VACATED. (638)(1-click HTML)

(a) The filing of a petition for judicial review of an action under this subchapter does not vacate the action. (639)

(b) After notice and hearing, the court may vacate the action if the court finds it would serve the interest of justice to do so. (640)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (641)

Sec. 36.205. APPEAL. (642)(1-click HTML)

(a) A party to the action under Section 36.202 may appeal to an appellate court that has jurisdiction, and the appeal is at once returnable to that court. (643)

(b) An appeal under this section has precedence in the appellate court over any cause of a different character pending in the court. (644)

(c) The commissioner is not required to give an appeal bond in an appeal arising under this subchapter. (645)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (646)

SUBCHAPTER E. INVESTIGATION FILES (647)(1-click HTML)
Sec. 36.251. DEFINITION. (648)(1-click HTML)

In this subchapter, "investigation file" means any information collected, assembled, or maintained by or on behalf of the department with respect to an investigation conducted under this code or other law. The term does not include information or material acquired by the department that is: (649)

(1) relevant to an investigation by the insurance fraud unit; and (650)

(2) subject to Section 701.151. (651)

Added by Acts 2009, 81st Leg., R.S., Ch. 1039 (H.B. 4461), Sec. 1, eff. June 19, 2009. (652)

Sec. 36.252. INVESTIGATION FILES CONFIDENTIAL. (653)(1-click HTML)

(a) Information or material acquired by the department that is relevant to an investigation is not a public record for the period that the department determines is relevant to further or complete an investigation. (654)

(b) Investigation files are not open records for purposes of Chapter 552, Government Code, except as specified herein. (655)

Added by Acts 2009, 81st Leg., R.S., Ch. 1039 (H.B. 4461), Sec. 1, eff. June 19, 2009. (656)

Sec. 36.253. DISCLOSURE OF CERTAIN INFORMATION NOT REQUIRED. (657)(1-click HTML)

The department is not required to disclose under this subchapter: (658)

(1) information that is: (659)

(A) an attorney-client communication; or (660)

(B) an attorney work product; or (661)

(2) other information protected by a recognized privilege, a statute, an administrative rule, the Texas Rules of Civil Procedure, or the Texas Rules of Evidence. (662)

Added by Acts 2009, 81st Leg., R.S., Ch. 1039 (H.B. 4461), Sec. 1, eff. June 19, 2009. (663)

CHAPTER 37. RATEMAKING AND POLICY FORM PROCEEDINGS (664)(1-click HTML)
Sec. 37.001. CERTAIN PROCEEDINGS RELATING TO RATEMAKING AND POLICY FORMS; RULES. (665)(1-click HTML)

(a) The commissioner shall adopt rules governing proceedings necessary to approve or promulgate rates, policy forms, or policy form endorsements under this code or another insurance law of this state. (666)

(b) The commissioner shall conduct the proceedings in accordance with the rules adopted under this section. (667)

(c) Rules adopted under this section must comply with this code and any other insurance law of this state and must be adopted in accordance with Chapter 2001, Government Code. (668)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (669)

SUBCHAPTER B. CERTAIN PROCEEDINGS RELATING TO RATES (670)(1-click HTML)
Sec. 37.051. STREAMLINED PROCEDURES. (671)(1-click HTML)

(a) The department shall study and the commissioner may adopt and implement procedures for streamlining insurance rate proceedings under this code or another insurance law of this state. The procedures must ensure due process to each affected party. (672)

(b) The commissioner shall consider this section in adopting rules under Section 37.001. (673)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (674)

Sec. 37.052. ROLE OF DEPARTMENT. (675)(1-click HTML)

(a) The application of this section is subject to Chapter 40. (676)

(b) The commissioner may designate the general counsel or an assistant general counsel to serve as a hearings officer in a proceeding in which insurance rates are set or in a prehearing proceeding. The commissioner must make the final decision relating to the rates to be set. (677)

(c) The department shall provide evidence in proceedings before the commissioner or the designated hearings officer that promotes the adoption of fair and reasonable rates for underserved areas to promote access to full insurance coverage for those areas. (678)

(d) The department may appear as a matter of right as a party, present evidence, or question a witness in a proceeding before the commissioner or the designated hearings officer in which insurance rates are set under this code. (679)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1071, Sec. 6, eff. Sept. 1, 2001. (680)

Sec. 37.053. EFFECTIVENESS OF RATE DURING APPEAL. (681)(1-click HTML)

(a) An order of the commissioner that determines, approves, or sets a rate under this code and that is appealed remains in effect during the pendency of the appeal. An insurer shall use the rate provided in the order while the appeal is pending. (682)

(b) The rate is lawful and valid during the appeal, and an insurer may not be required to make any refund from that rate after a decision on the appeal is rendered. (683)

(c) If the order is vacated on appeal, the rate established by the commissioner before the vacated order was rendered remains in effect from the date of remand until the commissioner makes a further determination. The commissioner shall consider the court's order in setting a future rate. (684)

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 12, eff. April 1, 2005. (685)

CHAPTER 38. DATA COLLECTION AND REPORTS (686)(1-click HTML)
Sec. 38.001. INQUIRIES. (687)(1-click HTML)

(a) In this section, "authorization" means a permit, certificate of registration, or other authorization issued or existing under this code. (688)

(b) The department may address a reasonable inquiry to any insurance company, including a Lloyd's plan or reciprocal or interinsurance exchange, or an agent or other holder of an authorization relating to: (689)

(1) the person's business condition; or (690)

(2) any matter connected with the person's transactions that the department considers necessary for the public good or for the proper discharge of the department's duties. (691)

(c) A person receiving an inquiry under Subsection (b) shall respond to the inquiry in writing not later than the 15th day after the date the inquiry is received. If the department receives written notice from the person that additional time is required to respond to the inquiry, the department shall grant a 10-day extension of the time to respond to the inquiry. (692)

(d) A response made under this section that is otherwise privileged or confidential by law remains privileged or confidential until introduced into evidence at an administrative hearing or in a court. (693)

(e) The department shall maintain a record of all inquiries made by the department under this section. (694)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (695)

Amended by: (696)

Acts 2005, 79th Leg., Ch. 1295 (H.B. 2614), Sec. 1, eff. September 1, 2005. (697)

Acts 2013, 83rd Leg., R.S., Ch. 398 (S.B. 183), Sec. 1, eff. September 1, 2013. (698)

Sec. 38.002. UNDERWRITING GUIDELINES FOR PERSONAL AUTOMOBILE AND RESIDENTIAL PROPERTY INSURANCE; FILING; CONFIDENTIALITY. (699)(1-click HTML)

(a) In this section: (700)

(1) "Insurer" means an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, or other legal entity engaged in the business of personal automobile insurance or residential property insurance in this state. The term includes: (701)

(A) an affiliate as described by Section 823.003(a) if that affiliate is authorized to write and is writing personal automobile insurance or residential property insurance in this state; (702)

(B) the Texas Windstorm Insurance Association created and operated under Chapter 2210; (703)

(C) the FAIR Plan Association under Chapter 2211; and (704)

(D) the Texas Automobile Insurance Plan Association under Chapter 2151. (705)

(2) "Personal automobile insurance" means motor vehicle insurance coverage for the ownership, maintenance, or use of a private passenger, utility, or miscellaneous type motor vehicle, including a motor home, mobile home, trailer, or recreational vehicle, that is: (706)

(A) owned or leased by an individual or individuals; and (707)

(B) not primarily used for the delivery of goods, materials, or services, other than for use in farm or ranch operations. (708)

(3) "Residential property insurance" means insurance coverage against loss to residential real property at a fixed location or tangible personal property provided in a homeowners policy, which includes a tenant policy, a condominium owners policy, or a residential fire and allied lines policy. (709)

(4) "Underwriting guideline" means a rule, standard, guideline, or practice, whether written, oral, or electronic, that is used by an insurer or its agent to decide whether to accept or reject an application for coverage under a personal automobile insurance policy or residential property insurance policy or to determine how to classify those risks that are accepted for the purpose of determining a rate. (710)

(b) Each insurer shall file with the department a copy of the insurer's underwriting guidelines. The insurer shall update its filing each time the underwriting guidelines are changed. If a group of insurers files one set of underwriting guidelines for the group, they shall identify which underwriting guidelines apply to each company in the group. (711)

(c) The office of public insurance counsel may obtain a copy of each insurer's underwriting guidelines. (712)

(d) The department or the office of public insurance counsel may disclose to the public a summary of an insurer's underwriting guidelines in a manner that does not directly or indirectly identify the insurer. (713)

(e) Underwriting guidelines must be sound, actuarially justified, or otherwise substantially commensurate with the contemplated risk. Underwriting guidelines may not be unfairly discriminatory. (714)

(f) The underwriting guidelines are subject to Chapter 552, Government Code. (715)

Added by Acts 2003, 78th Leg., ch. 206, Sec. 8.01, eff. June 11, 2003. (716)

Amended by: (717)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.004, eff. April 1, 2009. (718)

Sec. 38.003. UNDERWRITING GUIDELINES FOR OTHER LINES; CONFIDENTIALITY. (719)(1-click HTML)

(a) This section applies to all underwriting guidelines that are not subject to Section 38.002. (720)

(b) For purposes of this section, "insurer" means a reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, life, accident, or health or casualty insurance company, health maintenance organization, mutual life insurance company, mutual insurance company other than life, mutual, or natural premium life insurance company, general casualty company, fraternal benefit society, group hospital service company, or other legal entity engaged in the business of insurance in this state. The term includes an affiliate as described by Section 823.003(a) if that affiliate is authorized to write and is writing insurance in this state. (721)

(c) The department or the office of public insurance counsel may obtain a copy of an insurer's underwriting guidelines. (722)

(d) Underwriting guidelines are confidential, and the department or the office of public insurance counsel may not make the guidelines available to the public. (723)

(e) The department or the office of public insurance counsel may disclose to the public a summary of an insurer's underwriting guidelines in a manner that does not directly or indirectly identify the insurer. (724)

(f) When underwriting guidelines are furnished to the department or the office of public insurance counsel, only a person within the department or the office of public insurance counsel with a need to know may have access to the guidelines. The department and the office of public insurance counsel shall establish internal control systems to limit access to the guidelines and shall keep records of the access provided. (725)

(g) This section does not preclude the use of underwriting guidelines as evidence in prosecuting a violation of this code. Each copy of an insurer's underwriting guidelines that is used in prosecuting a violation is presumed to be confidential and is subject to a protective order until all appeals of the case have been exhausted. If an insurer is found, after the exhaustion of all appeals, to have violated this code, a copy of the underwriting guidelines used as evidence of the violation is no longer presumed to be confidential. (726)

(h) A violation of this section is a violation of Chapter 552, Government Code. (727)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Renumbered from Insurance Code Sec. 38.002 and amended by Acts 2003, 78th Leg., ch. 206, Sec. 8.01, eff. June 11, 2003. (728)

Amended by: (729)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.005, eff. April 1, 2009. (730)

SUBCHAPTER B. HEALTH BENEFIT PLAN PROVIDER REPORTING (731)(1-click HTML)
Sec. 38.051. DEFINITION. (732)(1-click HTML)

In this subchapter, "health benefit plan provider" means an insurance company, group hospital service corporation, or health maintenance organization that issues: (733)

(1) an individual, group, blanket, or franchise insurance policy, an insurance agreement, a group hospital service contract, or an evidence of coverage, that provides benefits for medical or surgical expenses incurred as a result of an accident or sickness; or (734)

(2) a long-term care benefit plan, as defined by Section 1651.003. (735)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (736)

Amended by: (737)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.006, eff. April 1, 2009. (738)

Sec. 38.052. REQUIRED INFORMATION; RULES. (739)(1-click HTML)

(a) A health benefit plan provider shall submit information required by the department relating to the health benefit plan provider's: (740)

(1) loss experience; (741)

(2) overhead; and (742)

(3) operating expenses. (743)

(b) The department may also request information about characteristics of persons covered by a health benefit plan provider, including information relating to: (744)

(1) age; (745)

(2) gender; (746)

(3) health status; (747)

(4) job classification; and (748)

(5) geographic distribution. (749)

(c) A health benefit plan provider may not be required to submit information under this section more frequently than annually. (750)

(d) The commissioner shall adopt rules governing the submission of information under this subchapter. (751)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (752)

SUBCHAPTER E. STATISTICAL DATA COLLECTION (753)(1-click HTML)
Sec. 38.201. DEFINITION. (754)(1-click HTML)

In this subchapter, "designated statistical agent" means an organization designated or contracted with by the commissioner under Section 38.202. (755)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (756)

Sec. 38.202. STATISTICAL AGENT. (757)(1-click HTML)

The commissioner may, for a line or subline of insurance, designate or contract with a qualified organization to serve as the statistical agent for the commissioner to gather data relevant for regulatory purposes or as otherwise provided by this code. (758)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (759)

Sec. 38.203. QUALIFICATIONS OF STATISTICAL AGENT. (760)(1-click HTML)

To qualify as a statistical agent, an organization must demonstrate at least five years of experience in data collection, data maintenance, data quality control, accounting, and related areas. (761)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (762)

Sec. 38.204. POWERS AND DUTIES OF STATISTICAL AGENT. (763)(1-click HTML)

(a) A designated statistical agent shall collect data from reporting insurers under a statistical plan adopted by the commissioner. (764)

(b) The statistical agent may provide aggregate historical premium and loss data to its subscribers. (765)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (766)

Sec. 38.205. DUTY OF INSURER. (767)(1-click HTML)

An insurer shall provide all premium and loss cost data to the commissioner or the designated statistical agent as the commissioner or agent requires. (768)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (769)

Sec. 38.206. FEES. (770)(1-click HTML)

(a) A designated statistical agent may collect from a reporting insurer any fees necessary for the agent to recover the necessary and reasonable costs of collecting data from that reporting insurer. (771)

(b) A reporting insurer shall pay the fee to the statistical agent for the data collection services provided by the statistical agent. (772)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (773)

Sec. 38.207. RULES. (774)(1-click HTML)

The commissioner may adopt rules necessary to accomplish the purposes of this subchapter. (775)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (776)

SUBCHAPTER F. DATA COLLECTING AND REPORTING RELATING TO MANDATED HEALTH BENEFITS AND MANDATED OFFERS OF COVERAGE (777)(1-click HTML)
Sec. 38.251. APPLICABILITY. (778)(1-click HTML)

This subchapter applies to any issuer of a health benefit plan that is subject to this code that provides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including an individual, group, blanket, or franchise insurance policy or insurance agreement, a group hospital service contract, or an individual or group evidence of coverage or similar coverage document. (779)

Added by Acts 2001, 77th Leg., ch. 852, Sec. 1, eff. Sept. 1, 2001. (780)

Sec. 38.252. COLLECTION OF INFORMATION; REPORT. (781)(1-click HTML)

(a) The commissioner shall require a health benefit plan issuer to collect and report cost and utilization data for each mandated health benefit and mandated offer designated by the commissioner. (782)

(b) The commissioner shall designate by rule: (783)

(1) the issuers of health benefit plans that must collect and report data based on the annual dollar amounts of Texas premium collected by the health benefit plan issuer; (784)

(2) the specific mandated health benefits and mandated offers of coverage for which data must be collected; (785)

(3) a description of the data that must be collected; (786)

(4) the beginning and ending dates of the reporting periods, which shall be no less than every two years; (787)

(5) the date following the end of the reporting period by which the report shall be submitted to the commissioner; (788)

(6) the detail and form in which the report shall be submitted; and (789)

(7) any other reasonable requirements that the commissioner determines are necessary to determine the impact of mandated benefits and mandated offers of coverage for which data collection and reporting is required. (790)

(c) The commissioner shall not require reporting of data: (791)

(1) that could reasonably be used to identify a specific enrollee in a health benefit plan; (792)

(2) in any way that violates confidentiality requirements of state or federal law applicable to an enrollee in a health benefit plan; or (793)

(3) in which the health maintenance organization operating under Section 1367.053, Subchapter A, Chapter 1452, Subchapter B, Chapter 1507, Chapter 222, 251, or 258, as applicable to a health maintenance organization, Chapter 843, Chapter 1271, and Chapter 1272 does not directly process the claim or does not receive complete and accurate encounter data. (794)

Added by Acts 2001, 77th Leg., ch. 852, Sec. 1, eff. Sept. 1, 2001. (795)

Amended by: (796)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2B.009, eff. April 1, 2009. (797)

Sec. 38.253. MAINTENANCE OF INFORMATION. (798)(1-click HTML)

Each health benefit plan issuer shall maintain at its principal place of business all data collected pursuant to this subchapter, including information and supporting documentation that demonstrates that the report submitted to the commissioner is complete and accurate. Each health benefit plan issuer shall make this information and any supporting documentation available to the commissioner upon request. (799)

Added by Acts 2001, 77th Leg., ch. 852, Sec. 1, eff. Sept. 1, 2001. (800)

Sec. 38.254. UTILIZATION AND COST DATA TO COMMISSIONER. (801)(1-click HTML)

(a) Upon request from the commissioner, the Texas Health and Human Services Commission shall provide to the commissioner data, including utilization and cost data, which is related to the mandate being assessed to the population covered by the Medicaid program, including a program administered under Chapter 32, Human Resources Code, and a program administered under Chapter 533, Government Code, even if the program is not necessarily subject to the mandate. (802)

(b) The commissioner may utilize data as defined in Subsection (a) to determine the impact of mandated benefits and mandated offers of coverage for which data collection and reporting is requested. (803)

Added by Acts 2001, 77th Leg., ch. 852, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.002, eff. Sept. 1, 2003. (804)

SUBCHAPTER G. DATA REPORTING BY CERTAIN LIABILITY INSURERS (805)(1-click HTML)
Sec. 38.301. INSURER DATA REPORTING. (806)(1-click HTML)

(a) Each insurer that writes professional liability insurance policies for nursing institutions licensed under Chapter 242, Health and Safety Code, including an insurer whose rates are not regulated, shall, as a condition of writing those policies in this state, comply with a request for information from the commissioner under this section. (807)

(b) The commissioner may require information in rate filings, special data calls, or informational hearings or by any other means consistent with this code applicable to the affected insurer that the commissioner believes will allow the commissioner to: (808)

(1) determine whether insurers writing insurance coverage described by Subsection (a) are passing to insured nursing institutions on a prospective basis the savings that accrue as a result of the reduction in risk to insurers writing that coverage that will result from legislation enacted by the 77th Legislature, Regular Session, including legislation that: (809)

(A) amended Article 5.15-1 to limit the exposure of an insurer to exemplary damages for certain claims against a nursing institution; and (810)

(B) amended Sections 32.021(i) and (k), Human Resources Code, added Section 242.050, Health and Safety Code, and repealed Section 32.021(j), Human Resources Code, to clarify the admissibility of certain documents in a civil action against a nursing institution; or (811)

(2) prepare the report required of the commissioner under Section 38.252 or any other report the commissioner is required to submit to the legislature in connection with the legislation described by Subdivision (1). (812)

(c) Information provided under this section is privileged and confidential to the same extent as the information is privileged and confidential under this code or any other law governing an insurer described by Subsection (a). The information remains privileged and confidential unless and until introduced into evidence at an administrative hearing or in a court of competent jurisdiction. (813)

Added by Acts 2001, 77th Leg., ch. 1284, Sec. 4.01, eff. June 15, 2001. Renumbered from Insurance Code Sec. 38.251 by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.501, eff. Sept. 1, 2003. (814)

Sec. 38.302. RECOMMENDATIONS TO LEGISLATURE. (815)(1-click HTML)

The commissioner shall assemble information and take other appropriate measures to assess and evaluate changes in the marketplace resulting from the implementation of the legislation described by Section 38.251 and shall report the commissioner's findings and recommendations to the legislature. (816)

Added by Acts 2001, 77th Leg., ch. 1284, Sec. 4.01, eff. June 15, 2001. Renumbered from Insurance Code Sec. 38.252 by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.501, eff. Sept. 1, 2003. (817)

SUBCHAPTER H. HEALTH CARE REIMBURSEMENT RATE INFORMATION (818)(1-click HTML)
Sec. 38.351. PURPOSE OF SUBCHAPTER. (819)(1-click HTML)

The purpose of this subchapter is to authorize the department to: (820)

(1) collect data concerning health benefit plan reimbursement rates in a uniform format; and (821)

(2) disseminate, on an aggregate basis for geographical regions in this state, information concerning health care reimbursement rates derived from the data. (822)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (823)

Sec. 38.352. DEFINITION. (824)(1-click HTML)

In this subchapter, "group health benefit plan" means a preferred provider benefit plan as defined by Section 1301.001 or an evidence of coverage for a health care plan that provides basic health care services as defined by Section 843.002. (825)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (826)

Sec. 38.353. APPLICABILITY OF SUBCHAPTER. (827)(1-click HTML)

(a) This subchapter applies to the issuer of a group health benefit plan, including: (828)

(1) an insurance company; (829)

(2) a group hospital service corporation; (830)

(3) a fraternal benefit society; (831)

(4) a stipulated premium company; (832)

(5) a reciprocal or interinsurance exchange; or (833)

(6) a health maintenance organization. (834)

(b) Notwithstanding any provision in Chapter 1551, 1575, 1579, or 1601 or any other law, and except as provided by Subsection (e), this subchapter applies to: (835)

(1) a basic coverage plan under Chapter 1551; (836)

(2) a basic plan under Chapter 1575; (837)

(3) a primary care coverage plan under Chapter 1579; and (838)

(4) basic coverage under Chapter 1601. (839)

(c) Except as provided by Subsection (d), this subchapter applies to a small employer health benefit plan provided under Chapter 1501. (840)

(d) This subchapter does not apply to: (841)

(1) standard health benefit plans provided under Chapter 1507; (842)

(2) children's health benefit plans provided under Chapter 1502; (843)

(3) health care benefits provided under a workers' compensation insurance policy; (844)

(4) Medicaid managed care programs operated under Chapter 533, Government Code; (845)

(5) Medicaid programs operated under Chapter 32, Human Resources Code; or (846)

(6) the state child health plan operated under Chapter 62 or 63, Health and Safety Code. (847)

(e) The commissioner by rule may exclude a type of health benefit plan from the requirements of this subchapter if the commissioner finds that data collected in relation to the health benefit plan would not be relevant to accomplishing the purposes of this subchapter. (848)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (849)

Sec. 38.354. RULES. (850)(1-click HTML)

The commissioner may adopt rules as provided by Subchapter A, Chapter 36, to implement this subchapter. (851)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (852)

Sec. 38.355. DATA CALL; STANDARDIZED FORMAT. (853)(1-click HTML)

(a) Each health benefit plan issuer shall submit to the department, at the time and in the form and manner required by the department, aggregate reimbursement rates by region paid by the health benefit plan issuer for health care services identified by the department. (854)

(b) The department shall require that data submitted under this section be submitted in a standardized format, established by rule, to permit comparison of health care reimbursement rates. To the extent feasible, the department shall develop the data submission requirements in a manner that allows collection of reimbursement rates as a dollar amount and not by comparison to other standard reimbursement rates, such as Medicare reimbursement rates. (855)

(c) The department shall specify the period for which reimbursement rates must be filed under this section. (856)

(d) The department may contract with a private third party to obtain the data under this subchapter. If the department contracts with a third party, the department may determine the aggregate data to be collected and published under Section 38.357 if consistent with the purposes of this subchapter described in Section 38.351. The department shall prohibit the third party contractor from selling, leasing, or publishing the data obtained by the contractor under this subchapter. (857)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (858)

Sec. 38.356. CONFIDENTIALITY OF DATA. (859)(1-click HTML)

Except as provided by Section 38.357, data collected under this subchapter is confidential and not subject to disclosure under Chapter 552, Government Code. (860)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (861)

Sec. 38.357. PUBLICATION OF AGGREGATE HEALTH CARE REIMBURSEMENT RATE INFORMATION. (862)(1-click HTML)

The department shall provide to the Department of State Health Services for publication, for identified regions of this state, aggregate health care reimbursement rate information derived from the data collected under this subchapter. The published information may not reveal the name of any health care provider or health benefit plan issuer. The department may make the aggregate health care reimbursement rate information available through the department's Internet website. (863)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (864)

Sec. 38.358. PENALTIES. (865)(1-click HTML)

A health benefit plan issuer that fails to submit data as required in accordance with this subchapter is subject to an administrative penalty under Chapter 84. For purposes of penalty assessment, each day the health benefit plan issuer fails to submit the data as required is a separate violation. (866)

Added by Acts 2007, 80th Leg., R.S., Ch. 997 (S.B. 1731), Sec. 8, eff. September 1, 2007. (867)

CHAPTER 39. PUBLIC ACCESS (868)(1-click HTML)
Sec. 39.001. ACCESS TO PROGRAMS AND FACILITIES. (869)(1-click HTML)

(a) The commissioner shall prepare and maintain a written plan that describes how a person who does not speak English may be provided reasonable access to the department's programs. (870)

(b) The department shall comply with federal and state laws for program and facility accessibility. (871)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (872)

Sec. 39.002. PUBLIC COMMENT. (873)(1-click HTML)

The commissioner shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commissioner and to speak on any issue under the jurisdiction of the commissioner. (874)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (875)

Sec. 39.003. PUBLIC REPRESENTATION ON ADVISORY BODY. (876)(1-click HTML)

(a) At least one-half of the membership of each advisory body appointed by the commissioner, other than an advisory body whose membership is determined by this code or by another law relating to the business of insurance in this state, must represent the general public. (877)

(b) A public representative may not be: (878)

(1) an officer, director, or employee of an insurance company, insurance agency, agent, broker, solicitor, adjuster, or any other business entity regulated by the department; (879)

(2) a person required to register with the Texas Ethics Commission under Chapter 305, Government Code; or (880)

(3) a person related within the second degree by affinity or consanguinity to a person described by Subdivision (1) or (2). (881)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (882)

CHAPTER 40. DUTIES OF STATE OFFICE OF ADMINISTRATIVE HEARINGS AND COMMISSIONER IN CERTAIN PROCEEDINGS; RATE SETTING PROCEEDINGS (883)(1-click HTML)
Sec. 40.001. DEFINITION. (884)(1-click HTML)

In this chapter, "office" means the State Office of Administrative Hearings. (885)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (886)

Sec. 40.002. DUTIES OF STATE OFFICE OF ADMINISTRATIVE HEARINGS. (887)(1-click HTML)

The office shall conduct an administrative hearing required to be held or that may be held under this code or another insurance law of this state. (888)

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. (889)

Sec. 40.003. APPLICATION OF CHAPTER; EXCEPTIONS. (890)(1-click HTML)

(a) This chapter applies only to a hearing required to be held before a decision may be rendered or action taken by the commissioner or the department. (891)

(b) If a provision of this code or another insurance law of this state requires that the commissioner take an action at a hearing subject to this chapter, the commissioner shall take the action after receipt of a proposal for decision from the office regarding the hearing conducted by the office. (892)

(c) This chapter does not apply to a proceeding conducted under Chapter 201 or to a proceeding relating to: (893)

  

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