INSURANCE CODE
CHAPTER 31. ORGANIZATION OF DEPARTMENT
SUBCHAPTER A. GENERAL PROVISIONS
§ 31.001. DEFINITIONS. In this code and other insurance
laws:
(1) "Commissioner" means the commissioner of
insurance.
(2) "Department" means the Texas Department of
Insurance.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.002. DUTIES OF DEPARTMENT. In addition to the
other duties required of the Texas Department of Insurance, the
department shall:
(1) regulate the business of insurance in this state; and
(2) ensure that this code and other laws regarding insurance
and insurance companies are executed.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.003. COMPOSITION OF DEPARTMENT. The department is
composed of the commissioner and other officers and employees
required to efficiently implement:
(1) this code;
(2) other insurance laws of this state; and
(3) other laws granting jurisdiction or applicable to
the department or the commissioner.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.004. SUNSET PROVISION. The Texas Department of
Insurance is subject to Chapter 325, Government Code (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the department is abolished September 1, 2007.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 1112, § 2.02, eff. Sept. 1,
2003.
§ 31.005. DEFENSE BY ATTORNEY GENERAL. The attorney
general shall defend an action brought against the commissioner or
an employee or officer of the department as a result of that
person's official act or omission, whether or not at the time of the
institution of the action that person has terminated service with
the department.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.006. TEXAS WORKERS' COMPENSATION COMMISSION NOT
AFFECTED. This code does not affect the duties imposed by law on
the Texas Workers' Compensation Commission.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.007. REFERENCES TO BOARD. A reference in this code
or other law to the State Board of Insurance, the Board of Insurance
Commissioners, or an individual commissioner means the
commissioner or the department as consistent with the respective
duties of the commissioner and the department under this code and
other insurance laws.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER B. COMMISSIONER OF INSURANCE
§ 31.021. CHIEF EXECUTIVE. (a) The commissioner is
the department's chief executive and administrative officer. The
commissioner shall administer and enforce this code, other
insurance laws of this state, and other laws granting jurisdiction
or applicable to the department or the commissioner.
(b) The commissioner has the powers and duties vested in the
department by this code and other insurance laws of this state.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.022. APPOINTMENT; TERM. (a) The governor, with
the advice and consent of the senate, shall appoint the
commissioner. The commissioner serves a two-year term that expires
on February 1 of each odd-numbered year.
(b) The governor shall appoint the commissioner without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.023. QUALIFICATIONS. The commissioner must:
(1) be a competent and experienced administrator;
(2) be well informed and qualified in the field of insurance
and insurance regulation; and
(3) have at least five years of experience in the
administration of business or government or as a practicing
attorney or certified public accountant.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 10.01, eff.
Jan. 11, 2004.
§ 31.024. INELIGIBILITY FOR PUBLIC OFFICE. The
commissioner is ineligible to be a candidate for a public elective
office in this state, unless the commissioner has resigned and the
governor has accepted the resignation.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.026. COMPENSATION. The commissioner is entitled
to compensation as provided by the General Appropriations Act.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.027. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from office if the commissioner:
(1) does not have at the time of appointment the
qualifications required by Section 31.023;
(2) does not maintain during service as commissioner
the qualifications required by Section 31.023;
(3) violates a prohibition established by Section
33.001, 33.003, 33.004, or 33.005; or
(4) cannot, because of illness or disability,
discharge the commissioner's duties for a substantial part of the
commissioner's term.
(b) The validity of an action of the commissioner or the
department is not affected by the fact that it is taken when a
ground for removal of the commissioner exists.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.028. TRAINING PROGRAM FOR COMMISSIONER. (a) Not
later than the 90th day after the date on which the commissioner
takes office, the commissioner shall complete a training program
that complies with this section.
(b) The training program must provide the commissioner with
information regarding:
(1) the legislation that created the department;
(2) the programs operated by the department;
(3) the role and functions of the department;
(4) the rules of the department, with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the department;
(6) the results of the most recent formal audit of the
department;
(7) the requirements of:
(A) the open meetings law, Chapter 551, Government Code;
(B) the public information law, Chapter 552, Government
Code;
(C) the administrative procedure law, Chapter 2001,
Government Code; and
(D) other laws relating to public officials, including
conflict of interest laws; and
(8) any applicable ethics policies adopted by the
department or the Texas Ethics Commission.
Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 10.04, eff.
Jan. 11, 2004.
SUBCHAPTER C. PERSONNEL
§ 31.041. DEPARTMENT PERSONNEL. (a) Subject to the
General Appropriations Act or other law, the commissioner shall
appoint deputies, assistants, and other personnel as necessary to
carry out the powers and duties of the commissioner and the
department under this code, other insurance laws of this state, and
other laws granting jurisdiction or applicable to the department or
the commissioner.
(b) A person appointed under this section must have the
professional, administrative, and insurance experience necessary
to qualify the person for the position to which the person is
appointed.
(c) A person appointed as an associate or deputy
commissioner or to hold an equivalent position must have at least
five years of the experience required for appointment as
commissioner under Section 31.023. At least two years of that
experience must be in work related to the position to be held.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.042. DIVISION OF RESPONSIBILITIES. The
commissioner shall develop and implement policies that clearly
define the respective responsibilities of the commissioner and the
staff of the department.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY;
REPORT. (a) The commissioner or the commissioner's designee
shall prepare and maintain a written policy statement to ensure
implementation of a program of equal employment opportunity under
which all personnel transactions are made without regard to race,
color, disability, sex, religion, age, or national origin. The
policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with Chapter 21,
Labor Code;
(2) a comprehensive analysis of the department
workforce that meets federal and state guidelines;
(3) procedures by which a determination can be made of
significant underuse in the department workforce of all persons for
whom federal or state guidelines encourage a more equitable
balance; and
(4) reasonable methods to appropriately address those
areas of significant underuse.
(b) A policy statement prepared under this section must:
(1) cover an annual period;
(2) be updated annually;
(3) be reviewed by the Commission on Human Rights for
compliance with Subsection (a); and
(4) be filed with the governor.
(c) The governor shall deliver a biennial report to the
legislature based on the information received under Subsection (b).
The report may be made separately or as a part of other biennial
reports made to the legislature.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. The
commissioner shall provide to department employees, as often as
necessary, information regarding their:
(1) qualification for office or employment under this
code; and
(2) responsibilities under applicable laws relating
to standards of conduct for state employees.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 31.045. CAREER LADDER PROGRAM; PERFORMANCE
EVALUATIONS. (a) The commissioner or the commissioner's designee
shall develop an intra-agency career ladder program. The program
must require intra-agency posting of all nonentry level positions
concurrently with any public posting.
(b) The commissioner or the commissioner's designee shall
develop a system of annual performance evaluations. All merit pay
for department employees must be based on the system established
under this subsection.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
