Examination of Tax Returns Prohibited

Sec. 542.004. EXAMINATION OF TAX RETURNS PROHIBITED. (a) An insurer regulated under this code may not require a claimant, as a condition of settling a claim, to produce the claimant's federal income tax returns for examination or investigation by the insurer unless: (1) the claimant is ordered to produce the tax returns by a court; or (2) the claim involves: (A) a fire loss; or (B) a loss of profits or income. (b) An insurer that violates this section commits: (1) a prohibited practice under this subchapter; and (2) a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code. (c) A claimant affected by a violation of this section is entitled to remedies under Subchapter E, Chapter 17, Business & Commerce Code. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.