Sec. 942.159. VIOLATION BY ATTORNEY IN FACT OF REQUIREMENTS REGARDING INDEMNITY CONTRACTS; CRIMINAL PENALTY. (a) An attorney in fact commits an offense if the attorney in fact:
(1) exchanges a reciprocal or interinsurance contract without first complying with the law governing the contract; or
(2) directly or indirectly solicits or negotiates an application for the contract without first complying with the law governing the contract.
(b) Subsection (a) does not apply to an action taken by an attorney in fact for the purpose of applying for a certificate of authority from the commissioner as provided by this chapter.
(c) An offense under this section is punishable by a fine of not less than $100 or more than $1,000.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges
Chapter 942 - Reciprocal and Interinsurance Exchanges
Subchapter D. Operation, Powers, and Duties of Exchange
Section 942.151. Subscriber Liability for Certain Contingent Premiums
Section 942.152. Subscriber Limited Liability Based on Certain Minimum Capital and Surplus
Section 942.153. Prior Authority Not Affected
Section 942.154. Statements Relating to Indemnity Amounts
Section 942.155. Financial Requirements
Section 942.156. Issuance of Fidelity and Surety Bond Insurance; Deposit Required
Section 942.157. Transactions Between Certain Insurers and Affiliated Exchanges