Texas Insurance Code 543.003 – Thing of Value Not Specified in Policy
Terms Used In Texas Insurance Code 543.003
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
An insurer or an officer, agent, or representative of an insurer may not:
(1) directly or indirectly pay, allow, or give or offer to pay, allow, or give as an inducement to insurance a thing of value or other inducement that is not specified in the policy, including:
(A) a rebate of premium payable on the policy;
(B) a special favor or advantage in the dividends or other benefits to accrue on the policy; or
(C) paid employment or a contract for service; or
(2) give, sell, or purchase or offer to give, sell, or purchase as an inducement to insurance or in connection with insurance a thing of value that is not specified in the policy, including:
(A) stocks, bonds, or other securities of an insurer or other corporation, association, or partnership; or
(B) dividends or profits to accrue on the stocks, bonds, or other securities of an insurer or other corporation, association, or partnership.