INSURANCE CODE
CHAPTER 40. DUTIES OF STATE OFFICE OF ADMINISTRATIVE HEARINGS AND
COMMISSIONER IN CERTAIN PROCEEDINGS; RATE SETTING PROCEEDINGS
SUBCHAPTER A. GENERAL PROVISIONS
§ 40.001. DEFINITION. In this chapter, "office" means
the State Office of Administrative Hearings.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.002. DUTIES OF STATE OFFICE OF ADMINISTRATIVE
HEARINGS. The office shall conduct an administrative hearing
required to be held or that may be held under this code or another
insurance law of this state.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.003. APPLICATION OF CHAPTER;
EXCEPTIONS. (a) This chapter applies only to a hearing required
to be held before a decision may be rendered or action taken by the
commissioner or the department.
(b) If a provision of this code or another insurance law of
this state requires that the commissioner take an action at a
hearing subject to this chapter, the commissioner shall take the
action after receipt of a proposal for decision from the office
regarding the hearing conducted by the office.
(c) This chapter does not apply to a proceeding conducted
under Article 1.04D or to a proceeding relating to:
(1) approving or reviewing rates or rating manuals
filed by an individual company, unless the rates or manuals are
contested;
(2) adopting a rule;
(3) adopting or approving a policy form or policy form
endorsement;
(4) adopting or approving a plan of operation for an
organization subject to the jurisdiction of the department; or
(5) adopting a presumptive rate under Article 3.53.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 1318, § 3, eff. Sept. 1,
2001.
§ 40.004. MEMORANDUM OF UNDERSTANDING. (a) The
commissioner and the chief administrative law judge of the office
by rule shall adopt a memorandum of understanding governing
hearings conducted by the office under this code or another
insurance law of this state.
(b) The memorandum of understanding must require the chief
administrative law judge and the commissioner to cooperate in
conducting hearings under this chapter and may authorize the office
to perform any procedural act, including giving notice, that is
required to be performed by the commissioner under this code or
another insurance law of this state.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.005. CONFLICT WITH OTHER LAW. This chapter
prevails over another provision of this code or another insurance
law of this state unless the provision or other law states that this
chapter does not apply.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER B. PROCEEDINGS RELATING TO PROMULGATION OF RATES
§ 40.051. APPLICATION OF SUBCHAPTER. Subject to
Section 40.003, a proceeding to promulgate rates is governed by
this subchapter.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.052. APPLICATION OF ADMINISTRATIVE PROCEDURE
ACT. A proceeding to promulgate rates is a contested case under
Chapter 2001, Government Code, and to the extent not inconsistent
with this subchapter, that chapter and the Texas Rules of Civil
Procedure apply.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.053. PRESENTATION OF EVIDENCE. The administrative
law judge shall provide each interested party an opportunity to
respond to and present evidence and argument concerning all issues
in the proceeding.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.054. WITNESSES AND CROSS-EXAMINATION. (a) The
testimony of a witness, other than an expert witness, may be
presented either orally by the witness at the hearing or by
affidavit.
(b) Each party is entitled to cross-examine each witness
called to testify by another party to the proceeding. The
attendance of a witness providing testimony by affidavit is
required if a party files a written request that the witness appear
for cross-examination.
(c) If a witness providing testimony by affidavit fails to
appear for cross-examination after the filing of a written request
that the witness appear, the administrative law judge shall exclude
the affidavit from evidence and may not consider the affidavit for
any purpose.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.055. TESTIMONY OF EXPERT WITNESS; PREFILING
REQUIRED. The direct testimony of each expert witness to be called
must be prefiled in accordance with a schedule established by the
administrative law judge.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.056. DEADLINES. The administrative law judge
shall establish reasonable deadlines for the filing of affidavits,
the designation of witnesses, and other matters as are necessary or
appropriate.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.057. INFLUENCE OF COMMISSIONER PROHIBITED. The
commissioner may not attempt to influence the administrative law
judge's findings of fact, conclusions of law, or application of the
law to the facts.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.058. PROPOSAL FOR DECISION. The administrative
law judge shall:
(1) prepare a proposal for decision that includes
proposed findings of fact and conclusions of law; and
(2) serve the proposal for decision by registered mail
on each party to the proceeding.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.059. CONSIDERATION OF PROPOSAL FOR
DECISION. (a) The commissioner shall provide to each party an
opportunity to file exceptions to the proposal for decision and
briefs related to the issues addressed in the proposal.
(b) After the opportunity to file exceptions and briefs
under Subsection (a), the commissioner shall, in open meeting,
consider:
(1) the proposal for decision; and
(2) the exceptions, briefs, and arguments of the
parties.
(c) The commissioner may amend the proposal for decision,
including any finding of fact. The commissioner shall accompany
any amendment with an explanation of the basis of the amendment.
The commissioner shall base any amendment and the order adopting
the rate solely on the record made before the administrative law
judge.
(d) The commissioner may refer the matter back to the
administrative law judge to:
(1) reconsider findings and conclusions in the
proposal for decision;
(2) take additional evidence; or
(3) make additional findings of fact or conclusions of
law.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 40.060. COMMISSIONER'S ORDER. The commissioner shall
serve on each party a copy of the commissioner's order, including
the commissioner's findings of fact and conclusions of law.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
