Texas

1. Unfair Claims Practices Act

Art. 21.21. Unfair Competition and Unfair Practices

(10) Unfair Settlement Practices. (a) Engaging in any of the following unfair settlement practices with respect to a claim by an insured or beneficiary:

(i) misrepresenting to a claimant a material fact or policy provision relating to coverage at issue;

(ii) failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim with respect to which the insurer's liability has become reasonably clear;

(iii) failing to attempt, in good faith, to effectuate a prompt, fair, and equitable settlement under one portion of a policy of a claim with respect to which the insurer's liability has become reasonably clear in order to influence the claimant to settle an additional claim under another portion of the coverage, provided that this prohibition does not apply if payment under one portion of the coverage constitutes evidence of liability under another portion of the policy;

(iv) failing to provide promptly to a policyholder a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for the insurer's denial of a claim or for the offer of a compromise settlement of a claim;

(v) failing within a reasonable time to:

(A) affirm or deny coverage of a claim to a policyholder; or

(B) submit a reservation of rights to a policyholder;

(vi) refusing, failing, or unreasonably delaying an offer of settlement under applicable first-party coverage on the basis that other coverage may be available or that third parties are responsible for the damages suffered, except as may be specifically provided in the policy;

(vii) undertaking to enforce a full and final release of a claim from a policyholder when only a partial payment has been made, provided that this prohibition does not apply to a compromise settlement of a doubtful or disputed claim;

(viii) refusing to pay a claim without conducting a reasonable investigation with respect to the claim;

(ix) with respect to a Texas personal auto policy, delaying or refusing settlement of a claim solely because there is other insurance of a different type available to satisfy all or any part of the loss forming the basis of that claim; or

(x) requiring a claimant, as a condition of settling a claim, to produce the claimant's federal income tax returns for examination or investigation by the person unless:

(A) the claimant is ordered to produce those tax returns by a court;

(B) the claim involves a fire loss; or

(C) the claim involves lost profits or income.

(b) Paragraph (a) of this clause does not provide a cause of action to a third party asserting one or more claims against an insured covered under a liability insurance policy.

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in039.21.21B 

2. Unfair Trade Practices Act

Art. 21.21. Unfair Competition and Unfair Practices

Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Defined

Sec. 4. The following are hereby defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:

(1) Misrepresentations and False Advertising of Policy Contracts. Making, issuing, circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or making any false or misleading statements as to the dividends or share of surplus previously paid on similar policies, or making any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or using any name or title of any policy or class of policies misrepresenting the true nature thereof, or making any misrepresentation to any policyholder insured in any company for the purpose of inducing or tending to induce such policyholder to lapse, forfeit, or surrender his insurance;

(2) False Information and Advertising Generally. Making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading;

(3) Defamation. Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting or encouraging the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, or maliciously critical of or derogatory to the financial condition of any insurer, and which is calculated to injure any person engaged in the business of insurance;

(4) Boycott, Coercion and Intimidation. Entering into any agreement to commit, or by any concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance;

(5) False Financial Statements. (a) Filing with any supervisory or other public official, or making, publishing, disseminating, circulating or delivering to any person, or placing before the public, or causing directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false statement of financial condition of an insurer with intent to deceive;

(b) Making any false entry in any book, report or statement of any insurer with intent to deceive any agent or examiner lawfully appointed to examine into its condition or into any of its affairs, or any public official to whom such insurer is required by law to report, or who has authority by law to examine into its condition or into any of its affairs, or, with like intent, wilfully omitting to make a true entry of any material fact pertaining to the business of such insurer in any book, report or statement of such insurer;

(6) Stock Operations and Advisory Board Contracts. Issuing or delivering or permitting agents, officers or employees to issue or deliver, company stock or other capital stock, or benefit certificates or shares in any corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to insurance. Provided, however, that nothing in this subsection shall be construed as prohibiting the issuing or delivery of participating insurance policies otherwise authorized by law.

(7) Unfair Discrimination. Making or permitting any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract.

(8) Rebates. (a) Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract of life insurance, life annuity or accident and health insurance, or agreement as to such contract other than as plainly expressed in the contract issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance, or annuity, any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract; or giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance or annuity or in connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association, or partnership, or any dividends or profits accrued thereon, or anything of value whatsoever not specified in the contract;

(b) Nothing in clause 7 or paragraph (a) of clause 8 of this subsection shall be construed as including within the definition of discrimination or rebates any of the following practices:

(i) in the case of any contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from non-participating insurance, provided that any such bonuses or abatement of premiums shall be fair and equitable to policyholders and for the best interests of the company and its policyholders;

(ii) in the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses;

(iii) readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year; or

(iv) in the case of a life annuity, waiving surrender charges under an annuity contract when the contract holder exchanges the annuity contract for another annuity contract issued by the same insurer, if the waiver and the exchange are fully, fairly, and accurately explained to the contract holder in a manner that is not deceptive or misleading.

(9) Deceptive Name, Word, Symbol, Device, or Slogan. Using, displaying, publishing, circulating, distributing, or causing to be used, displayed, published, circulated, or distributed in any letter, pamphlet, circular, contract, policy, evidence of coverage, article, poster, or other document, literature, or public media of:

(a) a name as the corporate or business name of a person or entity engaged in an insurance or insurance related business in this state that is the same as, or deceptively similar to, the name adopted and used by an insurance entity, health maintenance organization, third party administrator, or group hospital service company authorized to do business under the laws of this state; or

(b) a word, symbol, device, slogan, or any combination of these items, whether registered or not registered, that is the same as or deceptively similar to one adopted and used by an insurance entity, health maintenance organization, third party administrator, or group hospital service company to distinguish such entities, products, or service from other entities, and includes the title, designation, character names, and distinctive features of broadcast or other advertising.

Where two persons or entities are using a name, word, symbol, device, slogan, or any combination of these items that are the same or deceptively similar and are likely to cause confusion or a mistake, the user who can demonstrate the first continuous actual use of such name, word, symbol, device, slogan, or combination of these items shall not have committed an unfair method of competition or deceptive act or practice.

(11) Misrepresentation of Insurance Policy. Misrepresenting an insurance policy by:

(a) making an untrue statement of material fact;

(b) failing to state a material fact that is necessary to make other statements made not misleading, considering the circumstances under which the statements were made;

(c) making a statement in such manner as to mislead a reasonably prudent person to a false conclusion of a material fact;

(d) making a material misstatement of law; or

(e) failing to disclose any matter required by law to be disclosed, including a failure to make disclosure in accordance with another provision of this code.

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in039.21.21B 

3. Imitation Crash Parts Regulations 

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4. Anti-Steering Regulations 

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5. Timely Notification

Art. 21.55. Prompt Payment of Claims

Notice of claim

Sec. 2. (a) Except as provided by Subsection (d) of this section, an insurer shall, not later than the 15th day after receipt of notice of a claim or the 30th business day if the insurer is an eligible surplus lines insurer:

(1) acknowledge receipt of the claim;

(2) commence any investigation of the claim; and

(3) request from the claimant all items, statements, and forms that the insurer reasonably believes, at that time, will be required from the claimant. Additional requests may be made if during the investigation of the claim such additional requests are necessary.

(b) If the acknowledgement of the claim is not made in writing, the insurer shall make a record of the date, means, and content of the acknowledgement.

Acceptance or rejection of claims

Sec. 3. (a) Except as provided by Subsections (b) and (d) of this section, an insurer shall notify a claimant in writing of the acceptance or rejection of the claim not later than the 15th business day after the date the insurer receives all items, statements, and forms required by the insurer, in order to secure final proof of loss.

(b) If the insurer has a reasonable basis to believe that the loss results from arson, the insurer shall notify the claimant in writing of the acceptance or rejection of the claim not later than the 30th day after the date the insurer receives all items, statements, and forms required by the insurer.

(c) If the insurer rejects the claim, the notice required by Subsections (a) and (b) of this section must state the reasons for the rejection.

(d) If the insurer is unable to accept or reject the claim within the period specified by Subsection (a) or (b) of this section, the insurer shall notify the claimant, not later than the date specified under Subsection (a) or (b), as applicable. The notice provided under this subsection must give the reasons the insurer needs additional time.

(e) Not later than the 45th day after the date an insurer notifies a claimant under Subsection (d) of this section, the insurer shall accept or reject the claim.

(f) Except as otherwise provided, if an insurer delays payment of a claim following its receipt of all items, statements, and forms reasonably requested and required, as provided under Section 2 of this article, for a period exceeding the period specified in other applicable statutes or, in the absence of any other specified period, for more than 60 days, the insurer shall pay damages and other items as provided for in Section 6 of this article.

(g) If it is determined as a result of arbitration or litigation that a claim received by an insurer is invalid and therefore should not be paid by the insurer, the requirements of Subsection (f) of this section shall not apply in such case.

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in037.21.21 

6. Timely Payment

Art. 21.55. Prompt Payment of Claims

Definitions

(1) "Claimant" means a person making a claim.

(2) "Business day" means a day other than a Saturday, Sunday, or holiday recognized by this state.

(3) "Claim" means a first party claim made by an insured or a policyholder under an insurance policy or contract or by a beneficiary named in the policy or contract that must be paid by the insurer directly to the insured or beneficiary.

(4) "Insurer" means any insurer authorized to do business as an insurance company or to provide insurance in this state, including:

(A) a domestic or foreign, stock and mutual, life, health, or accident insurance company;

(B) a domestic or foreign, stock or mutual, fire and casualty insurance company;

(C) a Mexican casualty company;

(D) a domestic or foreign Lloyd's plan insurer;

(E) a domestic or foreign reciprocal or insurance exchange;

(F) a domestic or foreign fraternal benefit society;

(G) a stipulated premium insurance company;

(H) a nonprofit legal service corporation;

(I) a statewide mutual assessment company;

(J) a local mutual aid association;

(K) a local mutual burial association;

(L) an association exempt under Article 14.17 of this code;

(M) a nonprofit hospital, medical, or dental service corporation, including a company subject to Chapter 20 of this code;

(N) a county mutual insurance company;

(O) a farm mutual insurance company;

(P) a risk retention group;

(Q) a purchase group;

(R) a surplus lines carrier; and

(S) a guaranty association created and operating under Article 21.28-C or 21.28-D of this code.

(5) "Notice of claim" means any notification in writing to an insurer, by a claimant, that reasonably apprises the insurer of the facts relating to the claim.

Payment of claims

Sec. 4. If an insurer notifies a claimant that the insurer will pay a claim or part of a claim under Section 3 of this article, the insurer shall pay the claim not later than the fifth business day after the notice has been made. If payment of the claim or part of the claim is conditioned on the performance of an act by the claimant, the insurer shall pay the claim not later than the fifth business day after the date the act is performed. Surplus lines insurers shall pay the claim not later than the twentieth business day after the notice or date the act is performed.

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in037.21.21 

7. False & Misleading Advertising

Art. 21.21. Unfair Competition and Unfair Practices

Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Defined

Sec. 4. The following are hereby defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:

(1) Misrepresentations and False Advertising of Policy Contracts. Making, issuing, circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or making any false or misleading statements as to the dividends or share of surplus previously paid on similar policies, or making any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or using any name or title of any policy or class of policies misrepresenting the true nature thereof, or making any misrepresentation to any policyholder insured in any company for the purpose of inducing or tending to induce such policyholder to lapse, forfeit, or surrender his insurance;

(2) False Information and Advertising Generally. Making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading;

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in039.21.21B 

8. False Use of Insurer’s Name

Art. 21.21. Unfair Competition and Unfair Practices

Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Defined

Sec. 4. The following are hereby defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:

using any name or title of any policy or class of policies misrepresenting the true nature thereof

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in039.21.21B 

9. Total Losses

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10. Consumer Sales Practices Acts

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11. Consumer Auto Repair Practices Acts

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12. Telemarketing laws

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13. Home Sales Act

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14. Licensing Adjusters

Art. 21.01. Purpose; Consolidation of Licenses; Application; Certificate of Authority or License Required; Rulemaking Authority

Purpose

Sec. 1. It is the intent of the legislature to:

(1) simplify and reform the regulation of insurance agents in this state by consolidating the types of licenses issued to insurance agents under this subchapter; and

(2) promote uniformity in the licensing, examination, continuing education, and disciplinary requirements for agents in this state and with other states.

Certificate of Authority or License Required

Sec. 2. It shall not be lawful for any person to act, as an agent or otherwise, in soliciting or receiving applications for insurance of any kind whatever in this state, or in any manner to aid in the transaction of the business of any insurance company incorporated in this state, or out of it, without first procuring a license or certificate of authority from the department.

Rules

Sec. 4. The commissioner may adopt rules as necessary to implement this subchapter and to meet the minimum requirements of federal law and regulations.

Art. 21.01-1. Agents' Qualifying Examination; Continuing Education Requirements for Agents

Examination Administration

Sec. 1. (a) The commissioner may accept examinations administered by a testing service as satisfying the examination requirements of persons seeking license as agents, counselors, or adjusters under this code. The commissioner may negotiate agreements with such testing services to include performance of examination development, test scheduling, examination site arrangements, and test administration, grading, reporting and analysis. The commissioner may require such testing services to correspond directly with the applicants with regard to the administration of such examinations and that such testing services collect fees for administering such examinations directly from the applicants. The commissioner may stipulate that any agreements with such testing services provide for the administration of examinations in specific locales and at specified frequencies. The commissioner shall retain the authority to establish the scope and type of all examinations. Prior to negotiating and making any agreement with any testing service as authorized hereby, the commissioner shall hold a public hearing in accordance with Chapter 2001, Government Code, and shall adopt such rules and standards as may be deemed appropriate by the commissioner to implement the authority granted in this article.

(b) The commissioner may appoint advisory boards consisting of any of the following persons: persons holding a license for which the respective examinations are intended, persons who are employed by insurance companies appointing such licensees, persons acting as general agents or managers, persons teaching insurance at an accredited college or university in Texas, persons who are citizens of the State of Texas but who are not of any of the preceding descriptions, or any combination of such persons. The function of such advisory boards will be to make recommendations to the commissioner or the testing service with respect to the scope, type, and conduct of such examinations and the times and places within the state where they shall be held. The members of such advisory boards shall serve without pay but shall be reimbursed for their reasonable expenses in attending meetings of their respective advisory boards.

(c) In the absence of an agreement with a testing service, the department shall administer any required qualifying examination in accordance with this article. The commissioner may adopt rules relating to the scope, type, and conduct of the written examinations and the times and places in this state at which the examinations will be conducted. The commissioner's rules may designate textbooks, manuals, and other materials to be studied by applicants in preparation for examinations conducted under this subsection. Those textbooks, manuals, or other materials may consist of material available to an applicant by purchase from the publisher or of material prepared at the direction of the commissioner and distributed to an applicant on request and on payment of the reasonable cost of the material. All examination questions shall be prepared from the contents of the textbooks, manuals, and other materials designated or prepared by the commissioner under this subsection.

(d) Not later than the 30th day after the date on which a licensing examination is administered under this code, the department shall notify each examinee of the results of the examination. However, if an examination is graded or reviewed by a testing service, the department shall notify each examinee of the results of the examination not later than the 14th day after the date on which the department receives the results from the testing service. If the notice of examination results graded or reviewed by a testing service will be delayed for longer than 90 days after the examination date, the department shall notify the examinee of the reason for the delay before the 90th day. The department may require a testing service to notify examinees of the results of an examination.

(e) If requested in writing by a person who fails a licensing examination administered under this code, the department shall furnish the person with an analysis of the person's performance on the examination.

Examination of License Applicant

Sec. 2. (a) Except as otherwise provided by this code, each applicant for a license to act as an insurance agent in this state must submit to a personal written examination that is prescribed by the commissioner and must pass the examination to the satisfaction of the department. The examination shall determine the applicant's competence with respect to:

(1) the type of insurance contracts for which the applicant seeks a license;

(2) the laws of this state regulating the business of insurance; and

(3) the ethical obligations and duties of an insurance agent.

(b) The department shall charge each applicant an examination fee in an amount determined by the department as necessary for administration of the examination. The fee must accompany each application to take the examination. The fee is nonrefundable other than for failure of the applicant to appear and take the examination after the applicant has given at least 24 hours' notice of an emergency situation to the department and received the department's approval of refund of the fee.

(c) The commissioner shall prescribe a limited written licensing examination for applicants for a limited license under Article 21.07-1 or 21. 14 of this code. A limited examination shall be administered according to the provisions of this article and shall determine the applicant's competence and understanding of:

(1) the basic principles of insurance contracts;

(2) the basic laws of this state regulating the business of insurance; and

(3) the ethical obligations and duties of an insurance agent.

(d) The department may not require a person to take an examination under this article if the person is:

(1) an applicant for the renewal of an unexpired license issued by the department;

(2) an applicant whose license issued by the department expired less than one year before the date of the application, if the previous license was not denied, revoked, or suspended by the commissioner;

(3) a partnership, corporation, or depository institution;

(4) an applicant for a life, accident, and health license who has attained the designation of chartered life underwriter (CLU);

(5) an applicant for a life and health insurance counselor license who has attained the designation of chartered life underwriter (CLU), chartered financial consultant (ChFC), or certified financial planner (CFP);

(6) an applicant for a property and casualty license who has attained the designation of chartered property and casualty underwriter (CPCU);

(7) an applicant for a specialty license issued under Article 21.09 of this code;

(8) a nonresident individual who is exempt from the examination requirement under Article 21.11 of this code; or

(9) an applicant for a general life, accident, and health license who was authorized to solicit or procure insurance on behalf of a fraternal benefit society on September 1, 1999, if the applicant:

(A) solicited or procured insurance on behalf of the fraternal benefit society for at least 24 months preceding September 1, 1999;

(B) does not solicit or procure insurance for any other insurer or a different fraternal benefit society on or after September 1, 1999;

(C) does not solicit or procure an insurance contract on or after September 1, 1999, except from a person who is eligible for membership in the fraternal benefit society; and

(D) does not solicit or procure an interest-sensitive life insurance contract that exceeds $35,000 of coverage on an individual life on or after September 1, 1999, unless the applicant has obtained the designation of "Fraternal Insurance Counselor" at the time the contract is solicited or procured.

(e) A license to which the exemption authorized under Subsection (d)(9) of this section applies must be held by the applicant in an individual capacity and is not transferable.

(f) Each examination administered under this article shall be offered in English and Spanish.

Continuing Education Requirements

Sec. 3. (a) The department has exclusive jurisdiction for all matters relating to the continuing education of insurance agents who are licensed under this code.

(b) Except as provided by Subsection (d) of this section, each individual who holds a license issued by the department shall complete continuing education. All required continuing education hours must be completed before the expiration date of the individual's license. An individual who holds a general life, accident, and health license, a life and health insurance counselor license, or a general property and casualty license shall complete 15 hours of continuing education annually. The agent may not be required to complete more than 15 continuing education hours annually as a result of holding more than one license for which continuing education is required. An individual who holds a limited life, accident, and health license or a limited property and casualty license shall complete five hours of continuing education annually. Each individual who holds a license issued by the department shall complete two hours of continuing education in ethics during each license renewal period. At least 50 percent of all required continuing education hours must be completed in a classroom setting or a classroom equivalent setting approved by the department. The department may accept continuing education hours completed in other professions or in association with professional designations in an insurance-related field.

(c) On a timely written request of an agent, the department may extend the time for the agent to comply with the continuing education requirements of this section or may exempt the agent from some or all of the requirements for a licensing period if the department finds that the agent is unable to comply with the requirements because of illness, medical disability, or another extenuating circumstance beyond the control of the agent. The commissioner by rule shall prescribe the criteria for an exemption or extension under this subsection.

(d) An individual who has continuously held a license issued under this code to operate as an insurance agent for at least 20 years is exempt from the continuing education requirements of this section. The commissioner by rule may provide for other reasonable exemptions.

(e) The department shall certify continuing education programs for agents. Only a program that satisfies the criteria established by rule by the commissioner may receive certification. The certification criteria shall be designed to ensure that continuing education programs enhance the knowledge, understanding, and professional competence of the license holder. A nonrefundable certification fee, in an amount set by the commissioner as necessary for administering this section, must accompany each application for certification of a continuing education program. The fee shall be established by rule and based on a graduated scale according to the number of hours required to complete the program.

(f) Each continuing education program provider shall register with the department as a course provider. The department shall assess a registration fee for each application for registration as a provider, set by the commissioner in an amount necessary for the proper administration of this section. The commissioner may adopt rules establishing the requirements for continuing education program providers. The department may enter into agreements with independent contractors under which the independent contractor certifies and registers continuing education programs and providers. The department may require those independent contractors to correspond directly with providers with regard to the administration of continuing education programs, and the contractors may collect fees from the providers for administration of the courses. The department retains the authority to establish the scope and type of continuing education requirements for each type of license.

(g) The commissioner may appoint an advisory council to provide the commissioner with information and assistance in the conduct of the continuing education program for agents licensed under this subchapter. If an advisory council is appointed, it must be composed of nine members, four of whom must be public members. A public member is entitled to reimbursement for the member's travel expenses as provided by Chapter 660, Government Code, and the General Appropriations Act. A public member may not:

(1) be an officer, director, or employee of an insurance company, insurance agency, agent, broker, adjuster, or any other business entity regulated by the department;

(2) be a person required to register with the Texas Ethics Commission under Chapter 305, Government Code; or

(3) be related to a person described by Subdivision (1) or (2) of this subsection within the second degree by affinity or consanguinity, as determined under Chapter 573, Government Code.

Added by Acts 1985, 69th Leg., ch. 841, § 65, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 685, § 12.03, eff. Sept. 1, 1993; Acts 2001, 77th Leg., ch. 703, § 1.02, eff. Sept. 1, 2001.

 

Art. 21.01-2. General Provisions Applicable to Certain License Holders

Sec. 1. Repealed by Acts 2001, 77th Leg., ch. 703, § 8.01(3), eff. Sept. 1, 2001.

Expiration And Renewal of Licenses

Sec. 1A. (a) Except as provided by a staggered renewal system adopted under Subsection (j) of this section, each agent license issued by the department expires on the second anniversary of the date of issuance unless suspended or revoked by the commissioner. The commissioner by rule may change the two-year expiration period if the commissioner finds that the change is necessary to promote a uniform license period among this state and the other states. A person may renew a license that has not expired or has not been suspended or revoked by filing a properly completed renewal application with the department in the form prescribed by the department and paying to the department before the expiration date of the license the required renewal fee. A renewal fee paid under this section is nonrefundable.

(b) On the filing of a completed renewal application not later than the expiration date of the license accompanied by the renewal fee set by the commissioner, the original license continues in force until:

(1) the department issues the renewal license; or

(2) the commissioner issues an order revoking the license.

(c) If a person's license has been expired for 90 days or less, the person may renew the license by filing a renewal application with the department in the form prescribed by the department and paying to the department the required renewal fee and an additional fee that is equal to one-half of the renewal fee for the license.

(d) If a person's license has been expired for more than 90 days but less than one year, the person may not renew the license, but is entitled to a new license without taking the applicable examination if the person submits to the department a new application, the license fee, and an additional fee equal to one-half of the license fee.

(e) If a person's license has been expired for one year or more, the person may not renew the license. The person may obtain a new license by submitting to reexamination, if examination is required for original issuance of the license, and complying with the requirements and procedures for obtaining an original license.

(f) The department may renew without reexamination an expired license of a person who was licensed in this state, moved to another state, and is currently licensed and has been in continual practice in the other state preceding the date of the application. The person must pay to the department a fee that is equal to the license fee.

(g) Not later than the 30th day after moving from one state to another state, a nonresident or resident agent licensed in this state shall file with the department:

(1) the agent's new address; and

(2) proof of authorization to engage in the business of insurance in the new state of residence.

(h) The department may not charge a fee or require a license application under Subsection (g) of this section.

(i) At least 30 days before the expiration of a person's license, the department shall send written notice of the impending license expiration to the person at the person's last known mailing address according to the records of the department.

(j) The commissioner by rule may adopt a system under which licenses expire on various dates during a licensing period. For the licensing period in which the license expiration is changed, license fees shall be prorated so that each license holder shall pay only that portion of the license fee that is allocable to the period during which the license is valid. On renewal of the license on the new expiration date, the total license renewal fee is payable. The commissioner shall adopt a system under which a person who holds more than one license may renew all the licenses held in a single process.

(k) This section is not applicable to a license issued under Article 21.07-6 of this code.

Sec. 2. Redesignated as Sec. 1A and amended by Acts 2001, 77th Leg., ch. 703, § 1.03, eff. Sept. 1, 2001.

Prohibited Activities

Sec. 2A. (a) A person licensed under this code who receives a commission or other consideration for services as an insurance agent may not receive an additional fee for those services provided to the same client except for a fee described by Article 21.35A or 21.35B of this code.

(b) An insurer or licensed insurance agent engaged in the business of insurance in this state may not pay, directly or indirectly, and may not accept, any commission or other valuable consideration to or from any person for services performed by that person as an insurance agent in this state unless the person holds a license to act as an insurance agent as required by the laws of this state. This subsection does not prevent the payment or receipt of renewal or other deferred commissions to or by any person solely because the person has ceased to hold a license to act as an insurance agent.

(c) An insurance agent licensed under this code may not pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, to any person who is not a licensed insurance agent, any rebate of premiums payable, commission, paid employment, or contract for service, or any other valuable consideration or inducement, that is not specified in the policy or contract of insurance for or on account of the solicitation or negotiation of contracts of insurance.

(d) In addition to any other penalty imposed under this code, a person who is determined by the department to have committed conduct described by this subsection is barred from receiving a license as an insurance agent before the fifth anniversary of the date of the determination. This subsection applies to a person who:

(1) acts as an insurance agent without holding a license under this code;

(2) solicits a contract of insurance or acts as an insurance agent without having been appointed or designated by an authorized insurance company, association, or organization to do so as provided by this code;

(3) solicits any contract of insurance or acts as an agent for a person, including an insurance company, association, or organization, not authorized to engage in the business of insurance in this state without holding a license issued under Article 1.14-2 of this code; or

(4) as an officer or representative of an insurance company, knowingly contracts with or appoints as an agent a person who does not hold a valid and outstanding license.

(e) A person who has had an insurance license revoked in this state or any other state may not solicit or otherwise transact business under Chapter 10 of this code unless it is determined by the department to be in the public interest, for good cause shown, to allow the person to act in that capacity.

(f) A person who has had an insurance license revoked in this state or any other state may not act as an officer, director, member, manager, or partner, or as a shareholder with a controlling interest, of an entity licensed under this subchapter unless it is determined by the department to be in the public interest, for good cause shown, to allow the person to act in that capacity.

(g) A property and casualty agent may not knowingly grant, write, or permit a greater amount of insurance against loss by fire than the reasonable value of the subject of the insurance.

(h) An insurance agent licensed under this code may not pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, to a person who is not a licensed insurance agent, a fee or other valuable consideration for the referral of a customer who seeks to purchase, or seeks an opinion on or advice regarding an insurance product, based on the purchase of insurance by that customer.

(i) This section does not apply to a person who is licensed under or holds a certificate of authority issued under Chapter 9 of this code.

updates>> http://www.capitol.state.tx.us/statutes/in/in0002100.html#in039.21.21B 

15. Diminished Value

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