Tex. Ins. Code § 2054.510 · Subchapter K. ACCIDENT PREVENTION
CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If a policyholder described by Section 2054.509(d) does not elect to cancel coverage as provided by that section:
(1) the company may cancel the coverage; or
(2) the commissioner of workers' compensation may impose an administrative penalty on the policyholder.
(b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation.
(c) In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider:
(1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act;
(2) the history and extent of previous administrative violations;
(3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act;
(4) any economic benefit resulting from the prohibited act; and
(5) the penalty necessary to deter future violations.
(d) A penalty collected under this section:
(1) must be deposited in the general revenue fund; and
(2) may be appropriated to the division to offset the costs of implementing and administering this subchapter.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.055(e), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.055(e), eff. September 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.2054.htm
- Text hash
- sha256 2913cf60a6120e76dc74644b61b495ac1a9756731e5cf9c8e4ab636377c35d8c
- 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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