Tex. Ins. Code § 841.705 · Subchapter O. ENFORCEMENT AND INTERVENTION
PENALTY FOR FAILURE TO INVEST OR REPORT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In addition to the penalty provided by this subchapter, an insurance company is subject to a penalty as prescribed by Subsection (b) if, while holding a certificate of authority to engage in the business of insurance in this state, or after the company ceases to write new business or ceases to hold a certificate of authority, the company intentionally fails or refuses to:
(1) make the investments required by Chapter 425;
(2) make a report required by a law described by Section 841.002;
(3) make any special report requested by the commissioner under a law described by Section 841.002; or
(4) comply with another provision of a law described by Section 841.002.
(b) A penalty under this section is in the amount of $25 per day for each day the company remains in default after the commissioner notifies the company of the default in the manner provided by this subchapter.
(c) A penalty under this section may be recovered in a suit brought by the attorney general on behalf of the state in a district court of Travis County.
(d) In a suit brought to recover a penalty under this section:
(1) there are rebuttable presumptions that:
(A) any default that may have occurred was intentional; and
(B) the notice required by Subsection (b) was given; and
(2) if the question of whether the investments required by Chapter 425 were made is at issue, the defendant insurance company has the burden of proving that the investments were made as required by that chapter.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 15, 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.841.htm
- Text hash
- sha256 5862c9d91c2493dd48afd618f760ca238a13da3d54cdf37edafde232022cce80
- 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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