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Senate Bill 1809 |
Senate Author: Hancock |
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Effective: 9-1-21 |
House Sponsor: Vo |
Senate Bill 1809 amends the Insurance Code to revise provisions relating to the enforcement of insurance laws with respect to unauthorized persons who engage in the business of insurance in violation of the law. The bill, among other provisions, does the following:
· revises the conditions under which the commissioner of insurance may issue an emergency cease and desist order and makes certain changes to the timeline for a hearing on such an order;
· authorizes the commissioner to impose an administrative penalty or order restitution for unauthorized insurance activity;
· eliminates time limits for the commissioner to hold a hearing on whether to seek administrative relief for unauthorized insurance activity;
· establishes a specific deadline by which a person must respond to a request for information relating to an act that the commissioner or the Texas Department of Insurance believes constitutes the business of insurance and establishes that failure to provide the requested information constitutes a violation and may be used as evidence to support the issuance of an emergency cease and desist order;
· increases the maximum civil penalty for a person or entity that violates statutory provisions relating to unauthorized insurance or statutory provisions relating to an unauthorized and independently procured insurance premium tax; and
· increases the monetary penalty imposed on a person who is the subject of a written order to produce certain information based on the commissioner's belief that unauthorized insurance has been effectuated by or for the person and who either fails to timely comply with the order or wilfully makes a disclosure that is untrue, deceptive, or misleading.