Tex. Ins. Code § 1806.055 · Subchapter B. PROVISIONS APPLICABLE TO AUTOMOBILE INSURANCE
PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Section 1806.054 does not prohibit an insurer from sharing earned profits with the insurer's policyholders under a profit sharing agreement contained in the policy if:
(1) the insurer shares profits uniformly among those insured under the policy; and
(2) the insurer distributes earnings equitably among those insureds under the terms of the policy.
(b) An insurer may not:
(1) discriminate in the distribution of profits among insureds of the same class;
(2) distribute the profit to an insured before the expiration of the policy; or
(3) establish a class of insureds for the distribution of profits, except on the commissioner's approval.
(c) A violation of this section is unjust discrimination and rebating.
(d) The commissioner may revoke the certificate of authority of an insurer that violates this section or the license of an agent who violates this section.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1806.htm
- Text hash
- sha256 181b59c82542f2e9a70906edf6613cb5817b83e8b71e5a8494794811f6e24932
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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