(a) An insurer or health maintenance organization that is not eligible for an exemption under Section 401.006 or 401.007 may apply to the commissioner for a hardship exemption.
(b) Subject to Subsection (c), the commissioner may grant an exemption under this section if the commissioner finds, after reviewing the application, that compliance with this subchapter would constitute a severe financial or organizational hardship for the insurer or health maintenance organization. The commissioner may grant the exemption at any time for one or more specified periods.

(c) The commissioner may not grant an exemption under this section if:
(1) the exemption would diminish the department’s ability to monitor the financial condition of the insurer or health maintenance organization; or
(2) the insurer or health maintenance organization:
(A) during the five-year period preceding the date the application for the exemption is made:
(i) has been placed under supervision, conservatorship, or receivership;
(ii) has undergone a change in control, as described by Section 823.005; or
(iii) has been subject to a significant number of complaints, as determined by the commissioner;
(B) has been identified by the department as troubled;
(C) has been or is the subject of a disciplinary action by the department; or
(D) is not complying with the law or with a rule adopted by the commissioner.