Texas § IN.2054.510 - CANCELLATION OF COVERAGE BY COMPANY
Full text of Texas The Texas Constitution § IN.2054.510 — CANCELLATION OF COVERAGE BY COMPANY, with citation guidance and answers to common questions.
§ IN.2054.510. CANCELLATION OF COVERAGE BY COMPANY
CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY. (a) If a policyholder described by Section 2054.509 (d) does not elect to cancel coverage as provided by that section: (1) the company may cancel the coverage; or (2) the commissioner of workers' compensation may impose an administrative penalty on the policyholder. (b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation. (c) In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider: (1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act; (2) the history and extent of previous administrative violations; (3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act; (4) any economic benefit resulting from the prohibited act; and (5) the penalty necessary to deter future violations. (d) A penalty collected under this section: (1) must be deposited in the general revenue fund; and (2) may be appropriated to the division to offset the costs of implementing and administering this subchapter. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 2, eff. April 1, 2007. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 3B.055(e), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167 ), Sec. 9.055(e), eff. September 1, 2007.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § IN.2054.510
What does The Texas Constitution § IN.2054.510 cover?
Section IN.2054.510 ("CANCELLATION OF COVERAGE BY COMPANY") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.2054.510?
A common citation format is "The Texas Constitution § IN.2054.510" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.2054.510 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.