Texas Insurance Code 4005.101 – Grounds for License Denial or Disciplinary Action
(a) This section does not apply to a person who holds a license or certificate of authority issued under Title 11.
(b) The department may deny a license application or discipline a license holder under this subchapter if the department determines that the applicant or license holder, individually or through an officer, director, or shareholder:
(1) has wilfully violated an insurance law of this state;
(2) has intentionally made a material misstatement in the license application;
(3) has obtained or attempted to obtain a license by fraud or misrepresentation;
(4) has misappropriated, converted to the applicant’s or license holder’s own use, or illegally withheld money belonging to:
(A) an insurer;
(B) a health maintenance organization; or
(C) an insured, enrollee, or beneficiary;
(5) has engaged in fraudulent or dishonest acts or practices;
(6) has materially misrepresented the terms and conditions of an insurance policy or contract, including a contract relating to membership in a health maintenance organization;
(7) has made or issued, or caused to be made or issued, a statement misrepresenting or making incomplete comparisons regarding the terms or conditions of an insurance or annuity contract legally issued by an insurer or a membership issued by a health maintenance organization to induce the owner of the contract or membership to forfeit or surrender the contract or membership or allow it to lapse for the purpose of replacing the contract or membership with another;
(8) has been convicted of a felony;
(9) has offered or given a rebate of an insurance premium or commission to an insured or enrollee;
(10) is not actively engaged in soliciting or writing insurance for the public generally as required by Section 4001.104(a); or
(11) has obtained or attempted to obtain a license, not for the purpose of holding the applicant or license holder out to the general public as an agent, but primarily for the purpose of soliciting, negotiating, or procuring an insurance or annuity contract or membership covering:
(A) the applicant or license holder;
(B) a member of the applicant’s or license holder’s family; or
(C) a business associate of the applicant or license holder.
Terms Used In Texas Insurance Code 4005.101
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Fraud: Intentional deception resulting in injury to another.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005