INSURANCE CODE
CHAPTER 82. SANCTIONS
SUBCHAPTER A. GENERAL PROVISIONS
§ 82.001. DEFINITION. In this chapter, "authorization"
means a permit, license, certificate of authority, certificate of
registration, or other authorization issued or existing under the
commissioner's authority or this code.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.002. APPLICATION OF CHAPTER. (a) This chapter
applies to each company regulated by the commissioner, including:
(1) a domestic or foreign, stock or mutual, life,
health, or accident insurance company;
(2) a domestic or foreign, stock or mutual, fire or
casualty insurance company;
(3) a Mexican casualty company;
(4) a domestic or foreign Lloyd's plan insurer;
(5) a domestic or foreign reciprocal or interinsurance
exchange;
(6) a domestic or foreign fraternal benefit society;
(7) a domestic or foreign title insurance company;
(8) an attorney's title insurance company;
(9) a stipulated premium insurance company;
(10) a nonprofit legal service corporation;
(11) a health maintenance organization;
(12) a statewide mutual assessment company;
(13) a local mutual aid association;
(14) a local mutual burial association;
(15) an association exempt under Article 14.17;
(16) a nonprofit hospital, medical, or dental service
corporation, including a company subject to Chapter 20;
(17) a county mutual insurance company; and
(18) a farm mutual insurance company.
(b) This chapter also applies to:
(1) an agent of an entity described by Subsection (a);
and
(2) an individual or a corporation, association,
partnership, or other artificial person who:
(A) is engaged in the business of insurance;
(B) holds an authorization; or
(C) is regulated by the commissioner.
(c) The commissioner's authority under this chapter applies
to each form of authorization and each person or entity holding an
authorization.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 1419, § 18, eff. June 1,
2003; Acts 2001, 77th Leg., ch. 1420, § 11.002, eff. Sept. 1,
2001.
§ 82.003. PROCEEDINGS UNDER OTHER LAW. The
commissioner's authority under this chapter is in addition to any
other authority to enforce a sanction, penalty, fine, forfeiture,
denial, suspension, or revocation otherwise authorized by law.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER B. IMPOSITION OF SANCTIONS
§ 82.051. CANCELLATION OR REVOCATION OF
AUTHORIZATION. After notice and opportunity for a hearing, the
commissioner may cancel or revoke an authorization if the holder of
the authorization is found to be in violation of, or to have failed
to comply with, this code or a rule of the commissioner.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.052. OTHER SANCTIONS. In addition to the
cancellation or revocation of an authorization under Section
82.051, the commissioner may:
(1) suspend the authorization for a specified time not
to exceed one year;
(2) order the holder of the authorization to cease and
desist from:
(A) the activity determined to be in violation of
this code or a rule of the commissioner; or
(B) the failure to comply with this code or a rule
of the commissioner;
(3) direct the holder of the authorization to pay an
administrative penalty under Chapter 84;
(4) direct the holder of the authorization to make
restitution under Section 82.053; or
(5) take any combination of those actions.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.053. RESTITUTION. (a) The commissioner may
direct the holder of an authorization to make complete restitution
to each Texas resident, each Texas insured, and each entity
operating in this state that is harmed by a violation of, or failure
to comply with, this code or a rule of the commissioner.
(b) The holder of the authorization shall make the
restitution in the form and amount and within the period determined
by the commissioner.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.054. CANCELLATION ON FAILURE TO COMPLY. If it is
found after hearing that a holder of an authorization has failed to
comply with an order issued under Section 82.052, the commissioner
shall cancel each authorization held by the holder.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.055. INFORMAL DISPOSITION. (a) The commissioner
may informally dispose of a matter under this subchapter by consent
order, agreed settlement, stipulation, or default.
(b) An informal disposition may include a provision under
which the holder of the authorization agrees to a sanction under
this subchapter with the express reservation that:
(1) the holder does not admit a violation of this code
or of a rule; and
(2) the existence of a violation is in dispute.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 82.056. NOTICE TO OTHER STATES. The commissioner
shall give notice of an action taken under this subchapter to the
insurance commissioner or other similar officer of each state.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
