SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 541.001 - Purpose
The purpose of this chapter is to regulate trade practices in the business of insurance by: (1) defining or providing for the determination of trade...
- Texas Section 541.002 - Definitions
In this chapter: (1) "Knowingly" means actual awareness of the falsity, unfairness, or deceptiveness of the act or practice on which a claim for damages...
- Texas Section 541.003 - Unfair Methods Of Competition And Unfair Or Deceptive Acts Or Practices Prohibited
A person may not engage in this state in a trade practice that is defined in this chapter as or determined under this chapter to...
- Texas Section 541.004 - Venue For Actions Involving Department Or Commissioner
An action under this chapter in which the department or commissioner is a party must be brought in a district court in Travis County. Added...
- Texas Section 541.005 - Applicability To Risk Retention Or Purchasing Group
(a) A risk retention group or purchasing group described by Subchapter B, Chapter 2201, or Section 2201.251 that is not chartered in this state may...
- Texas Section 541.006 - Prohibited Content Of Certain Insurance Policies
Notwithstanding any other provision of this code, it is unlawful for an insurer engaged in the business of life, accident, or health insurance to issue...
- Texas Section 541.007 - Immunity From Prosecution
(a) This section applies to a person who requests to be excused from attending and testifying at a hearing or from producing books, papers, records,...
SUBCHAPTER B UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES DEFINED
- Texas Section 541.008 - Liberal Construction
This chapter shall be liberally construed and applied to promote the underlying purposes as provided by Section 541.001. Added by Acts 2003, 78th Leg., ch....
- Texas Section 541.051 - Misrepresentation Regarding Policy Or Insurer
It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to: (1) make, issue, or...
- Texas Section 541.052 - False Information And Advertising
(a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to make, publish, disseminate,...
- Texas Section 541.053 - Defamation Of Insurer
(a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to directly or indirectly...
- Texas Section 541.054 - Boycott, Coercion, Or Intimidation
It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to commit through concerted action...
- Texas Section 541.055 - False Financial Statement
(a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to, with intent to...
- Texas Section 541.056 - Prohibited Rebates And Inducements
(a) Subject to Section 541.058 and except as otherwise expressly provided by law, it is an unfair method of competition or an unfair or deceptive...
- Texas Section 541.057 - Unfair Discrimination In Life Insurance And Annuity Contracts
Subject to Section 541.058, it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to...
- Texas Section 541.058 - Certain Practices Not Considered Discrimination Or Inducement
(a) In this section: (1) "Health-related services" means services that are available in connection with an accident and health insurance policy or certificate or an...
- Texas Section 541.059 - Deceptive Name, Word, Symbol, Device, Or Slogan
(a) Except as provided by Subsection (b), it is an unfair method of competition or an unfair or deceptive act or practice in the business...
- Texas Section 541.060 - Unfair Settlement Practices
(a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to engage in the...
SUBCHAPTER B-1 ADVERTISING REQUIREMENTS
- Texas Section 541.061 - Misrepresentation Of Insurance Policy
It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to misrepresent an insurance policy...
- Texas Section 541.082 - Advertising And Internet Websites
(a) In this section, "insurer" includes: (1) a life insurance company; (2) a health insurance company; (3) an accident insurance company; (4) a general casualty...
- Texas Section 541.083 - Advertisements To Certain Associations
An insurer may advertise to the general public policies or coverage available only to members of an association described by Section 1251.052. Added by Acts...
- Texas Section 541.084 - Advertisements Relating To Medicare Program
A person may not use an advertisement for an insurance product relating to Medicare coverage unless the advertisement includes in a prominent place the following...
- Texas Section 541.085 - Advertisements Relating To Preferred Provider Benefit Plans
It is sufficient for an insurer to use the term "PPO plan" in advertisements when referring to a preferred provider benefit plan offered under Chapter...
- Texas Section 541.086 - Advertising Regarding Guaranteed Renewable Coverage
(a) An advertisement for a guaranteed renewable accident and health insurance policy must include, in a prominent place, a statement indicating that rates for the...
SUBCHAPTER C DETERMINATION OF UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES; SANCTIONS AND PENALTIES
- Texas Section 541.087 - Advertisements Exempt From Filing Requirements
Sec. 541.087. ADVERTISEMENTS EXEMPT FROM FILING REQUIREMENTS.An advertisement subject to requirements regarding filing of the advertisement with the department for department review under this code...
- Texas Section 541.101 - Examination And Investigation
The department may examine and investigate the affairs of a person engaged in the business of insurance in this state to determine whether the person...
- Texas Section 541.102 - Statement Of Charges; Notice Of Hearing
(a) When the department has reason to believe that a person engaged in the business of insurance in this state has engaged or is engaging...
- Texas Section 541.103 - Hearing
A person against whom charges are made under Section 541.102 is entitled at the hearing on the charges to have an opportunity to be heard...
- Texas Section 541.104 - Hearing Procedures
(a) Nothing in this chapter requires the observance of formal rules of pleading or evidence at a hearing under this subchapter. (b) At a hearing...
- Texas Section 541.105 - Record Of Hearing
(a) At a hearing under this subchapter, the department may, and at the request of a party to the hearing shall, make a stenographic record...
- Texas Section 541.106 - Compliance With Subpoena
(a) If a person refuses to comply with a subpoena issued in connection with a hearing under this subchapter or refuses to testify with respect...
- Texas Section 541.107 - Determination Of Violation
After a hearing under this subchapter, the department shall determine whether: (1) the method of competition or the act or practice considered in the hearing...
- Texas Section 541.108 - Cease And Desist Order
On determining that a person committed a violation described by Section 541.107, the department shall: (1) make written findings; and (2) issue and serve on...
- Texas Section 541.109 - Modification Or Setting Aside Of Order
On the notice and in the manner the department determines proper, the department may modify or set aside in whole or in part a cease...
- Texas Section 541.110 - Administrative Penalty
(a) A person who violates a cease and desist order issued under Section 541.108 is subject to an administrative penalty under Chapter 84. (b) In...
SUBCHAPTER D PRIVATE ACTION FOR DAMAGES
- Texas Section 541.111 - Civil Penalty For Violation Of Cease And Desist Order
(a) A person who is found by a court to have violated a cease and desist order issued under Section 541.108 is liable to the...
- Texas Section 541.151 - Private Action For Damages Authorized
A person who sustains actual damages may bring an action against another person for those damages caused by the other person engaging in an act...
- Texas Section 541.152 - Damages, Attorney's Fees, And Other Relief
(a) A plaintiff who prevails in an action under this subchapter may obtain: (1) the amount of actual damages, plus court costs and reasonable and...
- Texas Section 541.153 - Frivolous Action
A court shall award to the defendant court costs and reasonable and necessary attorney's fees if the court finds that an action under this subchapter...
- Texas Section 541.154 - Prior Notice Of Action
(a) A person seeking damages in an action against another person under this subchapter must provide written notice to the other person not later than...
- Texas Section 541.155 - Abatement
(a) A person against whom an action under this subchapter is pending who does not receive the notice as required by Section 541.154 may file...
- Texas Section 541.156 - Settlement Offer
(a) A person who receives notice provided under Section 541.154 may make a settlement offer during a period beginning on the date notice under Section...
- Texas Section 541.157 - Contents Of Settlement Offer
A settlement offer made by a person against whom a claim under this subchapter is pending must include an offer to pay the following amounts,...
- Texas Section 541.158 - Rejection Of Settlement Offer
(a) A settlement offer is rejected unless both parts of the offer required under Section 541.157 are accepted by the claimant not later than the...
- Texas Section 541.159 - Limit On Recovery After Settlement Offer
(a) If the court finds that the amount stated in the settlement offer for damages under Section 541.157(1) is the same as, substantially the same...
- Texas Section 541.160 - Effect Of Settlement Offer
A settlement offer is not an admission of engaging in an act or practice defined by Subchapter B to be an unfair method of competition...
- Texas Section 541.161 - Mediation
(a) A party may, not later than the 90th day after the date a pleading seeking relief under this subchapter is served, file a motion...
SUBCHAPTER E ENFORCEMENT BY ATTORNEY GENERAL
- Texas Section 541.162 - Limitations Period
(a) A person must bring an action under this chapter before the second anniversary of the following: (1) the date the unfair method of competition...
- Texas Section 541.201 - Injunctive Relief
(a) The attorney general may bring an action under this section if the attorney general has reason to believe that: (1) a person engaged in...
- Texas Section 541.202 - Venue For Injunctive Action
An action for an injunction under this subchapter may be commenced in a district court in: (1) the county in which the person against whom...
- Texas Section 541.203 - Issuance Of Injunction
(a) The court may issue an appropriate temporary or permanent injunction. (b) The court shall issue the injunction without bond. Added by Acts 2003, 78th...
- Texas Section 541.204 - Civil Penalty
In addition to requesting a temporary or permanent injunction under Section 541.201, the attorney general may request a civil penalty of not more than $10,000...
- Texas Section 541.205 - Compensation Or Restoration
The court may make an additional order or judgment as necessary to compensate an identifiable person for actual damages or for restoration of money or...
- Texas Section 541.206 - Civil Penalty For Violation Of Injunction
(a) A person who violates an injunction issued under this subchapter is liable for and shall pay to the state a civil penalty of not...
SUBCHAPTER F CLASS ACTIONS BY ATTORNEY GENERAL OR PRIVATE INDIVIDUAL
- Texas Section 541.207 - Remedies Not Exclusive
The remedies provided by this subchapter are: (1) not exclusive; and (2) in addition to any other remedy or procedure provided by another law or...
- Texas Section 541.251 - Class Action Authorized
(a) If a member of the insurance buying public has been damaged by an unlawful method, act, or practice defined in Subchapter B as an...
- Texas Section 541.252 - Recovery
A plaintiff who prevails in a class action under this subchapter may recover: (1) court costs and attorney's fees reasonable in relation to the amount...
- Texas Section 541.253 - Frivolous Action
The court may award to the defendant court costs and reasonable attorney's fees in relation to the work expended on a finding by the court...
- Texas Section 541.254 - Statute Of Limitations Tolled
The filing of a class action under this subchapter tolls the statute of limitations for bringing an action by an individual under Section 541.162. Added...
- Texas Section 541.255 - Prior Notice
(a) Not later than the 31st day before the date a class action for damages is commenced under this subchapter, the prospective plaintiff must: (1)...
- Texas Section 541.256 - Prerequisites To Class Action
The court shall permit one or more members of a class to sue or be sued as representative parties on behalf of the class only...
- Texas Section 541.257 - Class Actions Maintainable
(a) An action may be maintained as a class action under this subchapter if the prerequisites of Section 541.256 are satisfied and, in addition: (1)...
- Texas Section 541.258 - Class Actions: Issues And Subclasses Authorized
When appropriate, an action may be brought or maintained as a class action under this subchapter with respect to particular issues or a class may...
- Texas Section 541.259 - Determination Regarding Whether Class Action May Be Maintained
(a) As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is...
- Texas Section 541.260 - Effect Of Denial Of Class Action
A court order denying that an action under this subchapter may be brought as a class action does not affect whether an individual may bring...
- Texas Section 541.261 - Notice Of Class Action
(a) If an action is permitted as a class action under this subchapter, the court shall direct to the members of the class the best...
- Texas Section 541.262 - Procedures In Class Action
In a class action under this subchapter, the court may make appropriate orders: (1) determining the course of proceedings or prescribing measures to prevent undue...
- Texas Section 541.263 - Effect Of Settlement Offer
(a) Damages may not be awarded to a class under this subchapter if, not later than the 30th day after the date the intended defendant...
- Texas Section 541.264 - Defenses
Damages may not be awarded in a class action under this subchapter if the defendant: (1) proves that the action complained of resulted from a...
- Texas Section 541.265 - Limitations Period For Damages
In a class action under this subchapter, damages may not include any damages incurred more than two years before the date the action is commenced....
- Texas Section 541.266 - Disposition
(a) A class action under this subchapter may not be dismissed, settled, or compromised without the approval of the court. (b) Notice of the proposed...
SUBCHAPTER G DEPARTMENT ACTION FOR REFUND OF PREMIUMS
- Texas Section 541.267 - Contents Of Judgment; Notice
(a) The judgment in a class action under this subchapter must describe those to whom the notice under Section 541.261 was directed and who have...
- Texas Section 541.301 - Refund Of Premiums
(a) After notice and hearing as provided in Subchapter C, the department may require a person to make an accounting under Subsection (b): (1) in...
- Texas Section 541.302 - Time To Make Refunds
The department shall specify a reasonable time within which a person required to make premium refunds under Section 541.301 must make the refunds. Added by...
- Texas Section 541.303 - Sanction
(a) The department may report to the attorney general a person's failure to comply with the department's requirement to refund premiums within the time specified...
SUBCHAPTER H ASSURANCE OF VOLUNTARY COMPLIANCE
- Texas Section 541.304 - Evidentiary Use Of Compliance Or Attempt To Comply
(a) Compliance or an attempt to comply with the department's requirement to refund premiums is: (1) an offer to compromise; (2) not admissible as evidence;...
- Texas Section 541.351 - Acceptance Of Assurance
(a) In administering this chapter, the department may accept assurance of voluntary compliance from a person who is engaging in, has engaged in, or is...
- Texas Section 541.352 - Effect Of Assurance
(a) An assurance of voluntary compliance is not an admission of a prior violation of: (1) this chapter or a rule adopted under this chapter;...
- Texas Section 541.353 - Reopening
A matter closed by the filing of an assurance of voluntary compliance may be reopened at any time. Added by Acts 2003, 78th Leg., ch....
SUBCHAPTER I RULEMAKING
- Texas Section 541.354 - Right To Bring Action Not Affected
An assurance of voluntary compliance does not affect the right of an individual to bring an action under this chapter, except that the right of...
- Texas Section 541.401 - Rulemaking Authority
(a) The commissioner may adopt and enforce reasonable rules the commissioner determines necessary to accomplish the purposes of this chapter. (b) Notwithstanding a previous definition...
- Texas Section 541.402 - Petition
(a) A petition may be submitted to the commissioner to adopt, amend, or repeal a rule. The petition must be: (1) signed by 100 interested...
- Texas Section 541.403 - Denial Of Petition
(a) The department must state in writing the reason for denying a petition to adopt, amend, or repeal a rule. (b) The department is expressly...
- Texas Section 541.404 - Hearing On Petition
(a) A hearing held by the department in response to a petition to adopt, amend, or repeal a rule must be open to the public....
SUBCHAPTER J CONSTRUCTION OF CHAPTER WITH OTHER LAWS
- Texas Section 541.405 - Judicial Review Of Department Action
(a) A person aggrieved by the denial of a petition under Section 541.402 or the adoption, amendment, or repeal of or failure to adopt a...
- Texas Section 541.451 - Liability Under Other Law
An order of the department under this chapter or an order by a court to enforce that order does not relieve or absolve a person...
- Texas Section 541.452 - Powers In Addition To Other Powers Authorized By Law
The powers vested in the department and the commissioner by this chapter are in addition to any other powers to enforce a penalty, fine, or...
- Texas Section 541.453 - Double Recovery Prohibited
A person may not recover damages and penalties for the same act or practice under both this chapter and another law. Added by Acts 2003,...
- Texas Section 541.454 - Penalties And Related Payments By Insurer
(a) Civil penalties, premium refunds, judgments, compensatory judgments, individual recoveries, orders, class action awards, costs, damages, or attorney's fees assessed or awarded under this chapter:...