Texas Insurance Code 81.001 – Limitations Period for Certain Disciplinary Actions
(a) Except as provided by Subsection (b), the department or commissioner may not begin an action to impose a sanction, penalty, or fine, including an administrative penalty, against an insurer, agent, or other license holder who is subject to the jurisdiction of the department for conduct that is a violation of this code or another insurance law of this state after the earlier of:
(1) the fifth anniversary of the date on which the conduct that is a violation occurred; or
(2) the second anniversary of the earlier of:
(A) the date on which the conduct that is a violation is first discovered by the department; or
(B) the date on which the conduct that is a violation is made known to the department.
(b) The department or commissioner may not begin an action to impose a sanction, penalty, or fine, including an administrative penalty, against an insurer, agent, or other license holder who is subject to the jurisdiction of the department for conduct that is a violation of this code or another insurance law of this state and that involves fraud by the insurer, agent, or license holder after the fifth anniversary of the earlier of:
(1) the date on which the conduct that is a violation is first discovered by the department; or
(2) the date on which the conduct that is a violation is made known to the department.
Terms Used In Texas Insurance Code 81.001
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
(c) This section does not apply to conduct that is:
(1) a violation that is ongoing at the time the department seeks to impose the sanction, penalty, or fine;
(2) a violation of Subchapter A, Chapter 544, or Section 541.057, as those provisions relate to discrimination on the basis of race or color, regardless of the time the conduct occurs; or
(3) a violation of Title 5, Labor Code.