Texas Statutes
Subchapter G. Disciplinary Actions; Penalties
Section 4151.301. Grounds for Denial, Suspension, or Revocation of Certificate of Authority

Sec. 4151.301. GROUNDS FOR DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE OF AUTHORITY. The department may deny an application for a certificate of authority or discipline the holder of a certificate of authority under this subchapter if the department determines that the applicant or holder, individually, or through an officer, director, or shareholder:
(1) has wilfully violated an insurance law of this state;
(2) has intentionally made a material misstatement in the application for a certificate of authority;
(3) has obtained or attempted to obtain a certificate of authority by fraud or misrepresentation;
(4) has misappropriated, converted to the applicant's or holder's own use, or illegally withheld money belonging to:
(A) an insurance carrier, as that term is defined by Section 401.011, Labor Code;
(B) an insurer, as that term is defined by Section 4001.003;
(C) a health maintenance organization; or
(D) an insured, enrollee, injured employee, or beneficiary;
(5) has engaged in fraudulent or dishonest acts or practices;
(6) has materially misrepresented the terms and conditions of an insurance policy, certificate, evidence of coverage, or contract;
(7) has been convicted of a felony;
(8) is in a financial condition, or is operating or conducting business in a manner, that would render further transaction of business in this state hazardous or injurious to insured persons or the public;
(9) has failed to comply with any judgment rendered against the applicant or holder before the 60th day after the date on which the judgment becomes final;
(10) has wilfully violated a commissioner rule;
(11) has refused to be examined or to produce accounts, records, and files for examination as required by this chapter or commissioner rule;
(12) at any time fails to meet a qualification for which issuance of the certificate of authority could have been denied had the failure then existed and been known to the commissioner;
(13) has had a certificate of authority, license, or other authority issued by this state, another state, or the United States suspended or revoked; or
(14) has failed to timely file the annual report required by Section 4151.205.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.