1-1 AN ACT
1-2 relating to certain sanctions imposed by the commissioner of
1-3 insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 7(a), Article 1.10, Insurance Code, is
1-6 amended to read as follows:
1-7 (a) After notice and opportunity for a hearing, the
1-8 Commissioner may cancel or revoke any permit, license, certificate
1-9 of authority, certificate of registration, or other authorization
1-10 issued or existing under the Commissioner's [its] authority or the
1-11 authorization of this Code if the holder or possessor of same is
1-12 found to be in violation of, or to have failed to comply with, a
1-13 specific provision of the Code or any duly promulgated rule or
1-14 regulation of the Commissioner. The [In lieu of such cancellation
1-15 or revocation, the] Commissioner may also order one or more of the
1-16 following sanctions [if it determines from the facts that such
1-17 would be more fair, reasonable, or equitable]:
1-18 (1) Suspend such authorization for a time certain, not
1-19 to exceed one year;
1-20 (2) Order the holder or possessor of such
1-21 authorization to cease and desist from the specified activity
1-22 determined to be in violation of specific provisions of this Code
1-23 or rules and regulations of the Commissioner or from failure to
1-24 comply with such provisions of this Code or such rules and
2-1 regulations;
2-2 (3) Direct the holder or possessor of such
2-3 authorization to pay an administrative penalty in accordance with
2-4 Article 1.10E of this code; or
2-5 (4) Direct the holder or possessor of such
2-6 authorization to make complete restitution to all Texas residents,
2-7 Texas insureds, and entities operating in Texas harmed by the
2-8 violation or failure to comply.
2-9 SECTION 2. The change in law made by this Act applies only
2-10 to sanctions imposed for conduct that occurred on or after the
2-11 effective date of this Act. Sanctions imposed for conduct that
2-12 occurred before the effective date of this Act are governed by the
2-13 law as it existed immediately before the effective date of this
2-14 Act, and that law is continued in effect for that purpose.
2-15 SECTION 3. This Act takes effect September 1, 1997.
2-16 SECTION 4. The importance of this legislation and the
2-17 crowded condition of the calendars in both houses create an
2-18 emergency and an imperative public necessity that the
2-19 constitutional rule requiring bills to be read on three several
2-20 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1901 was passed by the House on April
22, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1901 was passed by the Senate on May
8, 1997, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor