Title IN, Insurance Code

Sec. 551.205. TERMINATION BY POLICYHOLDER. A master or group policyholder who terminates a portable electronics insurance policy shall provide notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. T…

Sec. 551.206. FORM OF NOTICE OR CORRESPONDENCE. (a) A notice required by this subchapter, or another notice or correspondence with respect to a portable electronics insurance policy that is required by law, must be: (1) in writing; and (2) sent within the notice period, if any, s…

Sec. 551.251. DEFINITIONS. In this subchapter, "personal automobile insurance" and "residential property insurance" have the meanings assigned by Section 38.002. Added by Acts 2025, 89th Leg., R.S., Ch. 762 (S.B. 213), Sec. 1, eff. September 1, 2025.

Sec. 551.252. APPLICABILITY OF SUBCHAPTER. This subchapter applies to an authorized insurer writing property and casualty insurance in this state, including: (1) a county mutual insurance company; (2) a Lloyd's plan; (3) a reciprocal or interinsurance exchange; (4) a farm mutual …

Sec. 551.253. EXEMPTIONS. This subchapter does not apply to: (1) an insurance policy delivered, issued for delivery, or renewed by the Texas Windstorm Insurance Association; (2) a flood insurance policy delivered, issued for delivery, or renewed under the National Flood Insurance…

Sec. 551.254. REQUIRED TYING OF RESIDENTIAL PROPERTY AND PERSONAL AUTOMOBILE POLICIES. (a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance under Chapter 541 to: (1) make the issuance, delivery, or renewal of a residenti…

Sec. 552.001. APPLICABILITY OF CHAPTER. (a) This chapter does not apply to the provision of a health care service to a: (1) Medicaid or Medicare patient or a patient who is covered by a federal, state, or local government-sponsored indigent health care program; (2) financially or…

Sec. 552.002. FRAUDULENT INSURANCE ACT. An offense under Section 552.003 is a fraudulent insurance act under Chapter 701. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Sec. 552.003. CHARGING DIFFERENT PRICES; OFFENSE. (a) A person commits an offense if: (1) the person knowingly or intentionally charges two different prices for providing the same product or service; and (2) the higher price charged is based on the fact that an insurer will pay a…

Sec. 553.001. DEFINITIONS. In this chapter: (1) "Holocaust victim" means a person who was killed or injured, or who lost financial assets or other property, as the result of discriminatory laws, policies, or actions directed against any discrete group of which the person was a me…

Sec. 553.002. SUSPENSION OF LIMITATIONS PERIOD. (a) Notwithstanding any other law, a Holocaust victim, or the heir, assignee, beneficiary, or successor of a Holocaust victim, who resides in this state and has a claim arising out of an insurance policy purchased or in effect in Eu…

Sec. 553.003. VIOLATION BY INSURER. An insurer violates this chapter if the insurer fails to comply with a claim brought under this chapter by: (1) denying the claim on the grounds that the claim is not timely; or (2) asserting a statute of limitations defense in an action brough…

Sec. 553.004. EXAMINATION; ENFORCEMENT. (a) If the commissioner considers it necessary, the commissioner may initiate an examination of an insurer under Sections 401.051, 401.052, and 401.054-401.062. (b) If the commissioner believes that an insurer is violating or has violated t…

Sec. 554.001. APPLICABILITY OF CHAPTER. This chapter applies to each insurer or health maintenance organization engaged in the business of insurance or the business of a health maintenance organization in this state, regardless of form and however organized, including: (1) a stoc…

Sec. 554.002. BURDEN OF PROOF AND PLEADING. In a suit to recover under an insurance or health maintenance organization contract, the insurer or health maintenance organization has the burden of proof as to any avoidance or affirmative defense that the Texas Rules of Civil Procedu…

Sec. 555.001. APPLICABILITY OF CHAPTER. This chapter does not apply to an insurer subject to Chapter 841. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Sec. 555.002. REVOCATION OF CERTIFICATE OF AUTHORITY. If an execution issued on a final judgment rendered against an insurer is not satisfied and discharged before the 31st day after the date of notice of the execution's issuance, the insurer's certificate of authority shall be r…

Sec. 556.001. DEFINITIONS. In this chapter: (1) "Affiliate" means a person who, directly or indirectly or through one or more intermediaries, controls or is controlled by another person or is under common control with another person. (2) "Depository institution" has the meaning a…

Sec. 556.002. RULES. The commissioner may adopt reasonable rules to comply with federal law applicable to the sale of insurance and for the implementation and administration of this chapter. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005. SUBCHAPTER B. UNFAIR…

Sec. 556.051. UNFAIR METHOD OF COMPETITION OR UNFAIR PRACTICE: TYING. (a) A depository institution engages in an unfair method of competition or an unfair practice in the sale of insurance by the depository institution if the depository institution: (1) is an agent and, as a cond…

Sec. 556.052. UNFAIR METHOD OF COMPETITION OR UNFAIR PRACTICE: FAILURE TO DISCLOSE. A depository institution engages in an unfair method of competition or an unfair practice in the sale of insurance by the depository institution if, on the premises of the depository institution o…

Sec. 556.101. PROHIBITION ON CERTAIN REFERRALS OR SOLICITATIONS TO PURCHASE INSURANCE. (a) An individual who is an employee or agent of a depository institution or a subsidiary or affiliate of a depository institution may not directly or indirectly make a referral related to insu…

Sec. 556.102. INSURANCE SALE WITH LOAN TRANSACTION. (a) If insurance is offered or sold to a depository institution's customer in connection with a loan transaction by the depository institution, the insurance salesperson involved in that insurance transaction may not be involved…

Sec. 556.103. DESIGNATION OF PLACE OF INSURANCE ACTIVITIES. (a) The place where a depository institution sells or solicits the purchase of insurance or the place on the premises of a depository institution where insurance is sold or solicited for purchase shall be clearly and con…

Sec. 556.104. USE OF CUSTOMER INFORMATION. (a) In this section: (1) "Customer" means a person with an investment, security, deposit, trust, or credit relationship with a financial institution. (2) "Nonpublic customer information" means information relating to an individual that i…

Sec. 556.151. APPLICABILITY OF SUBCHAPTER. This subchapter does not apply to a credit life, credit accident and health, credit property, or credit involuntary unemployment insurance policy that is: (1) specifically authorized by this code; (2) approved for sale in this state; and…

Sec. 556.152. PROMOTIONAL MATERIALS DISCLOSURE. (a) This section applies to each agent that is a depository institution or that, on the premises of a depository institution or in connection with a product offering of a depository institution, sells or solicits the purchase of ins…

Sec. 556.153. DISCLOSURE AT TIME OF LOAN APPLICATION. (a) At the time a loan application is made, a depository institution shall provide to the customer a written disclosure as required by this section and Section 556.154. (b) The disclosure must be separate from any loan applica…

Sec. 556.154. FORM OF DISCLOSURE. (a) The disclosure required by Section 556.153 must be in substantially the following form: "CUSTOMER DISCLOSURE "You have applied for a loan with the depository institution. As permitted by Title 4, Finance Code, the depository institution is re…

Sec. 557.001. DEFINITIONS. In this subchapter: (1) "Lender" means a person holding a mortgage, lien, deed of trust, or other security interest in property. (2) "Residential real property" means: (A) a single-family house; (B) a duplex, triplex, or quadraplex; or (C) a unit in a m…

Sec. 557.002. NOTIFICATION BY LENDER TO INSURED CONCERNING INSURANCE PROCEEDS. (a) If a claim under an insurance policy for damage to residential real property is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment p…

Sec. 557.003. LENDER'S RELEASE OR REFUSAL TO RELEASE INSURANCE PROCEEDS. Not later than the 10th day after the date a lender receives from the insured a request for release of all or part of the insurance proceeds held by the lender, the lender shall: (1) if the lender has receiv…

Sec. 557.004. PAYMENT OF INTEREST; RATE. A lender who fails to provide notice as required by Section 557.002 or 557.003 or to release insurance proceeds as required by Section 557.003 shall pay to the insured interest at the rate of 10 percent a year on the proceeds held by the l…

Sec. 557.005. ACCRUAL OF INTEREST. (a) If a lender fails to provide notice as required by Section 557.002 or 557.003, interest begins to accrue on the date the lender received the insurance proceeds. (b) If a lender fails to release insurance proceeds as required by Section 557.0…

Sec. 557.006. INTEREST NOT REQUIRED ON INSURANCE PROCEEDS APPLIED TO REDUCE NOTE. A lender is not required to pay interest on insurance proceeds applied, in accordance with the terms and conditions of a deed of trust or other security agreement, to reduce a note. Added by Acts 20…

Sec. 557.051. LIENHOLDER APPROVAL OF PAYMENT. If payment of an insurance claim relating to personal property requires the endorsement of a check or draft by a holder of a lien on the property or otherwise requires approval of the lienholder, not later than the 14th business day a…

Sec. 557.052. CIVIL PENALTY. (a) A lienholder who violates Section 557.051 is liable for a civil penalty not to exceed $500 for each violation. (b) The attorney general may bring an action to collect a civil penalty under this section. Added by Acts 2003, 78th Leg., ch. 1274, Sec…

Sec. 558.001. DEFINITION. In this chapter, "insurer" means an insurance company or other entity authorized to engage in the business of insurance in this state. The term includes: (1) a stock life, health, or accident insurance company; (2) a mutual life, health, or accident insu…

Sec. 558.002. APPLICABILITY OF CHAPTER; REFUND OF UNEARNED PREMIUM. (a) This chapter applies to an insurer that issues an insurance policy that requires the insurer to maintain an unearned premium reserve for the portion of the written policy premium applicable to the unexpired o…

Sec. 558.003. RULES AND GUIDELINES. The commissioner shall: (1) adopt rules necessary to implement this chapter; and (2) establish appropriate guidelines to determine the portion of an unearned premium that must be refunded to a policyholder under this chapter. Added by Acts 2003…

Sec. 558.004. EFFECT ON INSURANCE PREMIUM FINANCE COMPANY. This chapter does not affect the obligation of an insurer to pay an unearned premium to an insurance premium finance company in accordance with Section 651.162. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April …

Sec. 559.001. DEFINITIONS. In this chapter: (1) "Adverse effect" means an action taken by an insurer in connection with the underwriting of insurance for a consumer that results in the denial of coverage, the cancellation or nonrenewal of coverage, or the offer to and acceptance …

Sec. 559.002. APPLICABILITY OF CHAPTER. This chapter applies to an insurer that writes personal insurance coverage and uses credit information or credit reports for the underwriting or rating of that coverage. Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), ef…

Sec. 559.003. INFORMATION PROVIDED TO PUBLIC. The department shall: (1) update insurer profiles maintained on the department's Internet website to provide information to consumers stating whether or not an insurer uses credit scoring; and (2) post the report required under former…

Sec. 559.004. RULES. (a) The commissioner may adopt rules necessary to implement this chapter. (b) The commissioner shall adopt rules that prescribe the allowable differences in rates charged by insurers due solely to the difference in credit scores. Added by Acts 2005, 79th Leg.…

Sec. 559.051. PERMISSIBLE USE OF CREDIT SCORING. An insurer may use credit scoring, except for factors that constitute unfair discrimination, to develop rates, rating classifications, or underwriting criteria regarding lines of insurance subject to this chapter. Added by Acts 200…