2005 Texas Insurance Code CHAPTER 33. STANDARDS OF CONDUCT

INSURANCE CODE

CHAPTER 33. STANDARDS OF CONDUCT


	§ 33.001. APPLICATION OF LAW RELATING TO ETHICAL 
CONDUCT.  The commissioner and each employee or agent of the 
department is subject to the code of ethics and the standard of 
conduct imposed by Chapter 572, Government Code, and any other law 
regulating the ethical conduct of state officers and employees.

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


	§ 33.002. INSURANCE BUSINESS INTEREST;  SERVICE AS 
COMMISSIONER.  (a) A person is not eligible for appointment as 
commissioner if the person, the person's spouse, or any other 
person who resides in the same household as the person:
		(1)  is registered, certified, or licensed by the 
department;               
		(2)  is employed by or participates in the management 
of a business entity or other organization regulated by or 
receiving funds from the department;
		(3)  owns or controls, directly or indirectly, more 
than a 10 percent interest in a business entity or other 
organization regulated by or receiving funds from the department;  
or
		(4)  uses or receives a substantial amount of tangible 
goods, services, or funds from the department, other than 
compensation or reimbursement authorized by law.
	(b)  A person is not eligible for appointment as commissioner 
if the person: 
		(1)  is a stockholder, director, officer, attorney, 
agent, or employee of an insurance company, insurance agent, 
insurance broker, or insurance adjuster;  or
		(2)  is directly or indirectly interested in a business 
described by Subdivision (1).
	(c)  Subsection (b) does not apply to:                                         
		(1)  a person solely because the person is insured by an 
insurer or is the beneficiary of insurance;  or
		(2)  a person who:                                                            
			(A)  is appointed as a receiver, liquidator, 
supervisor, or conservator of an insurer;  or
			(B)  is an employee of a receiver, liquidator, 
supervisor, or conservator of an insurer with respect to duties 
under that employment.

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


	§ 33.003. INSURANCE BUSINESS INTEREST;  EMPLOYEE.  (a) A 
person who is a director, officer, attorney, agent, or employee of 
an insurance company, insurance agent, insurance broker, or 
insurance adjuster may not be employed by the department.
	(b)  A person who resides in the same household as a person 
who is an officer, managerial employee, or paid consultant in the 
insurance industry may not be employed in an exempt salary position 
as defined by the General Appropriations Act.

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


	§ 33.004. TRADE ASSOCIATIONS.  (a) A person who is an 
officer, employee, or paid consultant of a trade association in the 
field of insurance may not be:
		(1)  the commissioner;  or                                                    
		(2)  an employee of the department who is exempt from 
the state's position classification plan or is compensated at or 
above the amount prescribed by the General Appropriations Act for 
step 1, salary group A17, of the position classification salary 
schedule.
	(b)  A person who is the spouse of an officer, manager, or 
paid consultant of a trade association in the field of insurance may 
not be:
		(1)  the commissioner;  or                                                    
		(2)  an employee of the department who is exempt from 
the state's position classification plan or is compensated at or 
above the amount prescribed by the General Appropriations Act for 
step 1, salary group A17, of the position classification salary 
schedule.
	(c)  In this section, "trade association" means a nonprofit, 
cooperative, and voluntarily joined association of business or 
professional competitors designed to assist its members and its 
industry or profession in dealing with mutual business or 
professional problems and in promoting their common interest.

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


	§ 33.005. LOBBYING ACTIVITIES.  A person may not serve as 
the commissioner or act as the general counsel to the commissioner 
if the person is required to register as a lobbyist under Chapter 
305, Government Code, because of the person's activities for 
compensation on behalf of a profession related to the operation of 
the department.

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


	§ 33.006. FORMER SERVICE.  A person may not serve as the 
commissioner if the person served as a member of the State Board of 
Insurance.

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


	§ 33.007. PROHIBITED REPRESENTATION.  (a) A person who 
served as the commissioner, the general counsel to the 
commissioner, or the public insurance counsel, or as an employee of 
the State Office of Administrative Hearings who was involved in 
hearing cases under this code, another insurance law of this state, 
or Title 5, Labor Code, commits an offense if the person represents 
another person in a matter before the department or receives 
compensation for services performed on behalf of another person 
regarding a matter pending before the department during the 
one-year period after the date the person ceased to be the 
commissioner, the general counsel to the commissioner, the public 
insurance counsel, or an employee of the State Office of 
Administrative Hearings.
	(b)  A person who served as a member of the State Board of 
Insurance or as a staff employee of a member of the State Board of 
Insurance, or who served as the commissioner, the general counsel 
to the commissioner, or the public insurance counsel or as an 
employee of the department or the State Office of Administrative 
Hearings, commits an offense if, after the person ceased to serve, 
the person represents another person or receives compensation for 
services performed on behalf of another person regarding a matter 
with which the person was directly concerned during the person's 
service.  For purposes of this subsection, a person was directly 
concerned with a matter if the person had personal involvement with 
the matter or if the matter was within the scope of the person's 
official responsibility.
	(c)  An offense under this section is a Class A misdemeanor.                   
	(d)  This section does not apply to a department employee 
whose position is eliminated as a direct result of a reduction in 
the department's workforce.

Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.  
Amended by Acts 2005, 79th Leg., ch. 265, § 6.054, eff. Sept. 1, 
2005.