Texas Insurance Code
Sec. § 101.201
Validity of Insurance Contracts


An insurance contract effective in this state and entered into by an unauthorized insurer is unenforceable by the insurer. A person who in any manner assisted directly or indirectly in the procurement of the contract is liable to the insured for the full amount of a claim or loss under the terms of the contract if the unauthorized insurer fails to pay the claim or loss.


This section does not apply to insurance procured by a licensed surplus lines agent from an eligible surplus lines insurer as defined by Chapter 981 (Surplus Lines Insurance) and independently procured contracts of insurance, as described in Section 101.053 (Application of Subchapter)(b)(4), that are reported and on which premium tax is paid in accordance with Chapter 225 (Surplus Lines Insurance Premium Tax) or 226 (Unauthorized and Independently Procured Insurance Premium Tax).
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 11.012, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1274, Sec. 16, eff. April 1, 2005.
Last accessed
Apr. 12, 2021