Texas Insurance Code 81.003 – Notification of Certain Disciplinary Actions Occurring in Other States; Civil Penalty
(a) In this section, “insurer” means any organization, corporation, or other person that transacts insurance business, other than an organization, corporation, or other person that is specifically made exempt from this section by a reference to this section, without regard to whether the organization, corporation, or other person is listed in this subsection. The term includes:
(1) a capital stock company;
(2) a title insurance company;
(3) a reciprocal or interinsurance exchange;
(4) a Lloyd’s plan insurer;
(5) a fraternal benefit society;
(6) a mutual company, including a mutual assessment company;
(7) a statewide mutual assessment company;
(8) a local mutual aid association;
(9) a burial association;
(10) a county mutual insurance company;
(11) a farm mutual insurance company; and
(12) a fidelity, guaranty, or surety company.
(b) An insurer shall notify the commissioner and shall deliver a copy of any applicable order or judgment to the commissioner not later than the 30th day after the date of the:
(1) suspension or revocation of the insurer’s right to transact business in another state; or
(2) receipt of an order to show cause why the insurer’s license in another state should not be suspended or revoked.
Terms Used In Texas Insurance Code 81.003
- 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.
- 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 insurer who violates Subsection (b) is liable for a civil penalty, recoverable by a civil action, in an amount not to exceed $500 for each violation. In addition to the civil penalty, the commissioner may suspend or revoke the license of an insurer or agent for a wilful violation of Subsection (b).