Texas Insurance Code - Section 101.051. Conduct That Constitutes The Business Of Insurance
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§ 101.051. CONDUCT THAT CONSTITUTES THE BUSINESS OF
INSURANCE. (a) In this section, "medical expense" includes
surgical, chiropractic, physical therapy, speech pathology,
audiology, professional mental health, dental, hospital, or
optometric expenses.
(b) The following acts in this state constitute the business
of insurance in this state:
(1) making or proposing to make, as an insurer, an
insurance contract;
(2) making or proposing to make, as guarantor or
surety, a guaranty or suretyship contract as a vocation and not
merely incidental to another legitimate business or activity of the
guarantor or surety;
(3) taking or receiving an insurance application;
(4) receiving or collecting any consideration for
insurance, including:
(A) a premium;
(B) a commission;
(C) a membership fee;
(D) an assessment; or
(E) dues;
(5) issuing or delivering an insurance contract to:
(A) a resident of this state; or
(B) a person authorized to do business in this
state;
(6) directly or indirectly acting as an agent for or
otherwise representing or assisting an insurer or person in:
(A) soliciting, negotiating, procuring, or
effectuating insurance or a renewal of insurance;
(B) disseminating information relating to
coverage or rates;
(C) forwarding an insurance application;
(D) delivering an insurance policy or contract;
(E) inspecting a risk;
(F) setting a rate;
(G) investigating or adjusting a claim or loss;
(H) transacting a matter after the effectuation
of the contract that arises out of the contract; or
(I) representing or assisting an insurer or
person in any other manner in the transaction of insurance with
respect to a subject of insurance that is resident, located, or to
be performed in this state;
(7) contracting to provide in this state
indemnification or expense reimbursement for a medical expense by
direct payment, reimbursement, or otherwise to a person domiciled
in this state or for a risk located in this state, whether as an
insurer, agent, administrator, trust, or funding mechanism or by
another method;
(8) doing any kind of insurance business specifically
recognized as constituting insurance business within the meaning of
statutes relating to insurance;
(9) doing or proposing to do any insurance business
that is in substance equivalent to conduct described by
Subdivisions (1)-(8) in a manner designed to evade statutes
relating to insurance; or
(10) any other transaction of business in this state
by an insurer.
(c) An act described by Subsection (b) by an unlicensed or
unauthorized person or insurer that occurs in this state and that
affects a person in another state or jurisdiction constitutes the
business of insurance in this state.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 671, § 2, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1419, § 22, eff. June 1, 2003;
Acts 2001, 77th Leg., ch. 1420, § 11.006, eff. Sept. 1, 2001.
Section: 86.002 86.051 86.052 101.001 101.002 101.003 101.004 101.051 101.052 101.053 101.054 101.055 101.101 101.102 101.103
Last modified: August 11, 2007
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