Texas Insurance Code 544.401 – Offense: Certain Discrimination
(a) In this section, “person” means a legal entity listed below and engaged in the business of life insurance or an officer or director of one of those entities:
(1) a capital stock insurance company;
(2) a mutual insurance company;
(3) a local mutual aid association;
(4) a statewide mutual assessment company; or
(5) a stipulated premium company.
(b) A person commits an offense if the person recklessly:
(1) offers insurance coverage at a premium based on a rate that is, because of race, color, religion, ethnicity, or national origin, different from another premium rate offered or used by the person for the same coverage, other than for classifications applicable alike to persons of every race, color, religion, ethnicity, or national origin; or
(2) collects an insurance premium based on a rate that is, because of race, color, religion, ethnicity, or national origin, different from another premium rate offered or used by the person for the same coverage, other than for classifications applicable alike to persons of every race, color, religion, ethnicity, or national origin.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| State jail felony | between 180 days and 2 years | up to $10,000 |
Terms Used In Texas Insurance Code 544.401
- 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
(c) An offense under this section is a state jail felony.