INSURANCE CODE
CHAPTER 547. FALSE ADVERTISING BY UNAUTHORIZED INSURERS
SUBCHAPTER A. GENERAL PROVISIONS
§ 547.001. DEFINITIONS. In this chapter:
(1) "Alien or foreign insurer" means an insurance
company organized under the laws of:
(A) a country other than the United States; or
(B) a state of the United States other than this
state.
(2) "Resident" includes a domestic, alien, or foreign:
(A) corporation;
(B) partnership; or
(C) person.
Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.
§ 547.002. CONSTRUCTION OF CHAPTER. This chapter shall
be construed liberally.
Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.
SUBCHAPTER B. PROHIBITION; ENFORCEMENT
§ 547.051. ACTS PROHIBITED. (a) This section applies
only to an insurer's misrepresentation of:
(1) the insurer's financial condition;
(2) the terms of an existing or future contract;
(3) the benefits or advantages promised by an existing
or future contract; or
(4) the dividends or share of surplus to be received on
an existing or future contract.
(b) An unauthorized alien or foreign insurer may not:
(1) make, issue, circulate, or cause to be made,
issued, or circulated to a resident of this state a
misrepresentation in an advertisement, estimate, illustration,
circular, pamphlet, or letter that violates Chapter 541; or
(2) cause to be made to a resident of this state in a
newspaper, magazine, or other publication, or over a radio or
television station, a misrepresentation in an announcement or
statement that violates Chapter 541.
Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.
§ 547.052. NOTICE OF VIOLATION TO INSURER'S DOMICILIARY
STATE. (a) In this section, the domiciliary state of an alien
insurer is the state of entry or the state of the insurer's
principal office in the United States.
(b) If the department has reason to believe that an insurer
has engaged in an act prohibited by Section 547.051, the department
shall notify, by registered mail, the insurer and the insurance
supervisory official of the insurer's domiciliary state.
Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.
§ 547.053. ENFORCEMENT ACTION. The department shall
take action under Chapter 541 against an insurer notified under
Section 547.052 if:
(1) after the 30th day following the date of notice,
the insurer has not stopped making, issuing, or circulating or
causing to be made, issued, or circulated in this state the false
misrepresentations; and
(2) the department has reason to believe that:
(A) the insurer is issuing or delivering
insurance contracts to residents of this state or is collecting
premiums on those contracts; and
(B) a department proceeding regarding the
misrepresentations is in the public interest.
Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.
