(a) If a policyholder described by § 2054.509(d) does not elect to cancel coverage as provided by that section:
(1) the company may cancel the coverage; or
(2) the commissioner of workers’ compensation may impose an administrative penalty on the policyholder.
(b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation.

(c) In imposing an administrative penalty, the commissioner of workers’ compensation may consider any matter that justice may require and shall consider:
(1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act;
(2) the history and extent of previous administrative violations;
(3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act;
(4) any economic benefit resulting from the prohibited act; and
(5) the penalty necessary to deter future violations.
(d) A penalty collected under this section:
(1) must be deposited in the general revenue fund; and
(2) may be appropriated to the division to offset the costs of implementing and administering this subchapter.