Texas § IN.101.203 - INVESTIGATION AND DISCLOSURE

§ IN.101.203. INVESTIGATION AND DISCLOSURE

INVESTIGATION AND DISCLOSURE. (a) If the commissioner has reason to believe that insurance has been effectuated by or for a person in this state with an unauthorized person or insurer, the commissioner shall in writing order the person to: (1) produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized persons or insurers; and (2) disclose to the commissioner: (A) the amount of insurance; (B) the name and address of each insurer; (C) the gross amount of premiums paid or to be paid; and (D) the name and address of each person assisting in the solicitation, negotiation, or effectuation of the insurance. (b) A person who fails to comply with a written order under Subsection (a) before the 31st day after the date of the order or who wilfully makes a disclosure that is untrue, deceptive, or misleading shall forfeit: (1) $1,000; and (2) an additional $1,000 for each day the person continues to fail to comply after expiration of the 30-day period. (c) This section does not apply to: (1) a transaction in this state that: (A) involves a policy that: (i) is lawfully solicited, negotiated, written, and delivered outside this state; and (ii) covers, at the time the policy is issued, only subjects of insurance that are not resident, located, or expressly to be performed in this state; and (B) takes place after the policy is issued; or (2) surplus lines insurance procured through eligible surplus lines insurers as defined by Section 981.002 . Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 2B.018, eff. April 1, 2009. Acts 2021, 87th Leg., R.S., Ch. 60 (S.B. 1809 ), Sec. 18, eff. September 1, 2021. SUBCHAPTER G. REPORTING OF UNAUTHORIZED INSURANCE