87(R) HB 4313 - House Committee Report version - Bill Text
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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of insurance laws, including laws |
 
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governing the unauthorized business of insurance; authorizing |
 
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administrative penalties. |
 
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             BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
 
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             SECTION  1.    Section 36.157(b), Insurance Code, is amended to |
 
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read as follows: |
 
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             (b)    On certification by the commissioner under official |
 
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seal, testimony taken or records produced under this subchapter or |
 
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acquired in response to a request for information under Section |
 
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101.104 and held by the department are admissible in evidence in a |
 
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case without: |
 
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                         (1)    prior proof of correctness; and |
 
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                         (2)    proof, other than the certificate of the |
 
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commissioner, that the testimony or records were received from the |
 
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person testifying or producing the records. |
 
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             SECTION  2.    Section 36.158(a), Insurance Code, is amended to |
 
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read as follows: |
 
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             (a)    A record or other evidence acquired under a subpoena |
 
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under this subchapter or in response to a request for information |
 
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under Section 101.104 is not a public record for the period the |
 
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commissioner considers reasonably necessary to: |
 
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                         (1)    complete the investigation; |
 
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                         (2)    protect the person being investigated from |
 
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unwarranted injury; or |
 
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                         (3)    serve the public interest. |
 
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             SECTION  3.    Section 83.051, Insurance Code, is amended to |
 
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read as follows: |
 
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             Sec.  83.051.    AUTHORITY OF COMMISSIONER TO ISSUE ORDER. (a) |
 
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The commissioner ex parte may issue an emergency cease and desist |
 
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order if: |
 
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                         (1)    the commissioner believes that: |
 
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                                     (A)    an authorized person engaging in the business |
 
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of insurance is: |
 
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                                                 (i)    committing an unfair act; or |
 
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                                                 (ii)    in a hazardous condition or a |
 
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hazardous financial condition under Section 843.406 or Subchapter |
 
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A, Chapter 404, as determined by the commissioner; or |
 
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                                     (B)    an unauthorized person: |
 
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                                                 (i)    is engaging in the business of |
 
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insurance in violation of Chapter 101 or in violation of a rule |
 
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adopted under that chapter; and [or] |
 
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                                                 (ii)    does not meet a statutory exception or |
 
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exemption  [is engaging in the business of insurance in violation of |
 
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Chapter 101 and is committing an unfair act]; and |
 
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                         (2)    with respect to conduct described by Subdivision |
 
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(1)(A),  it appears to the commissioner that the alleged conduct: |
 
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                                     (A)    is fraudulent; |
 
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                                     (B)    is hazardous or creates an immediate danger |
 
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to the public safety; or |
 
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                                     (C)    is causing or can be reasonably expected to |
 
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cause public injury that: |
 
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                                                 (i)    is likely to occur at any moment; |
 
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                                                 (ii)    is incapable of being repaired or |
 
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rectified; and |
 
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                                                 (iii)    has or is likely to have influence or |
 
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effect. |
 
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             (b)    An order is final on the 61st [31st] day after the date |
 
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it is served [received], unless the affected person requests a |
 
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hearing under Section 83.053. |
 
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             SECTION  4.    Section 83.053(b), Insurance Code, is amended to |
 
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read as follows: |
 
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             (b)    The affected person must request the hearing not later |
 
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than the 60th [30th] day after the date on which the person is |
 
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served with an [receives the] order required by Section 83.052. |
 
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             SECTION  5.    Sections 83.054(a), (b), and (c), Insurance |
 
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Code, are amended to read as follows: |
 
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             (a)    On receiving a timely request for a hearing under |
 
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Section 83.053, the department [commissioner] shall docket the case |
 
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at the State Office of Administrative Hearings not later than the |
 
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30th day after the date the department receives the request [serve |
 
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notice of the time and place of the hearing]. |
 
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