2005 Texas Insurance Code CHAPTER 81. GENERAL PROVISIONS REGARDING DISCIPLINE AND ENFORCEMENT

INSURANCE CODE

SUBTITLE B. DISCIPLINE AND ENFORCEMENT

CHAPTER 81. GENERAL PROVISIONS REGARDING DISCIPLINE AND 
ENFORCEMENT


	§ 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.
	(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.                                      

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.  
Amended by Acts 2001, 77th Leg., ch. 887, § 1, eff. Sept. 1, 
2001;  Acts 2005, 79th Leg., ch. 265, § 6.058, eff. Sept. 1, 
2005.


	§ 81.002. NOTICE OF CERTAIN ORDERS AND 
DECISIONS.  Notwithstanding Section 2001.142, Government Code, in 
a contested case before the department or the commissioner the 
department shall mail to each party and the party's attorney of 
record, by certified mail, return receipt requested, a copy of the 
department's or commissioner's written decision or order in that 
case.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 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;
		(2)  receipt of an order to show cause why the insurer's 
license in another state should not be suspended or revoked;  or
		(3)  imposition of a penalty, forfeiture, or sanction 
on the insurer for a violation of the insurance laws of another 
state.
	(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).

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.           


	§ 81.004. REPORT TO ATTORNEY GENERAL.  The department 
shall report to the attorney general, promptly and in detail, any 
violation of law relating to insurance companies or the business of 
insurance.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.