Texas Insurance Code - Section 401.008. Hardship Exemption
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§ 401.008. HARDSHIP EXEMPTION. (a) An insurer or health
maintenance organization that is not eligible for an exemption
under Section 401.006 or 401.007 may apply to the commissioner for a
hardship exemption.
(b) Subject to Subsection (c), the commissioner may grant an
exemption under this section if the commissioner finds, after
reviewing the application, that compliance with this subchapter
would constitute a severe financial or organizational hardship for
the insurer or health maintenance organization. The commissioner
may grant the exemption at any time for one or more specified
periods.
(c) The commissioner may not grant an exemption under this
section if:
(1) the exemption would diminish the department's
ability to monitor the financial condition of the insurer or health
maintenance organization; or
(2) the insurer or health maintenance organization:
(A) during the five-year period preceding the
date the application for the exemption is made:
(i) has been placed under supervision,
conservatorship, or receivership;
(ii) has undergone a change in control, as
described by Section 823.005; or
(iii) has been subject to a significant
number of complaints, as determined by the commissioner;
(B) has been identified by the department as
troubled;
(C) has been or is the subject of a disciplinary
action by the department; or
(D) is not complying with the law or with a rule
adopted by the commissioner.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.001 401.002 401.003 401.004 401.005 401.006 401.007 401.008 401.009 401.010 401.011 401.012 401.013 401.014 401.015
Last modified: August 11, 2007
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