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; or
(2) a violation of Article 21.21-6 of this code, as
added by Chapter 415, Acts of the 74th Legislature, Regular
Session, 1995, or Section 4(7)(a), Article 21.21 of this code, as
those provisions relate to discrimination on the basis of race or
color, regardless of the time the conduct occurs.
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.
§ 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.
