Tex.
Ins. Code Section 751.153
Protocols for Market Conduct Actions
(a)
Each market conduct action taken as a result of a market analysis:(1)
must focus on the general business practices and compliance activities of insurers, rather than identifying infrequent or unintentional random errors that do not cause significant consumer harm; and(2)
may not result in a market conduct examination, unless the head of the insurance regulatory agency in the insurer’s state of domicile determines that a market conduct examination is needed.(b)
The commissioner may determine the frequency and timing of the market conduct actions. The timing of an action depends on the specific market conduct action to be initiated unless extraordinary circumstances indicating a risk to consumers require immediate action.(c)
If the commissioner has information that more than one insurer is engaged in practices that may violate statutes or rules, the commissioner may schedule and coordinate multiple examinations simultaneously.(d)
The commissioner shall provide an insurer with an opportunity to resolve to the satisfaction of the commissioner any matter that arises as a result of a market analysis before any additional market conduct actions are taken against the insurer. If the insurer has modified a practice or procedure as a result of a market conduct action taken or examination conducted by the insurance commissioner of another state, and the commissioner deems that state’s market conduct surveillance system comparable to the system required under this chapter, the commissioner may accept the modified practice or procedure and may require other or additional practice or procedure modifications.(e)
For an application by the department of a handbook, guideline, or other product referenced in this chapter that is the work product of the National Association of Insurance Commissioners that changes the way in which market conduct actions are conducted, the commissioner shall give notice and provide interested parties with an opportunity for a public hearing as provided by Chapter 2001 (Administrative Procedure), Government Code, if the change:(1)
necessitates a change in a statute or rule; or(2)
deviates from the applicable handbook, guideline, or other product most recently adopted by the National Association of Insurance Commissioners.(f)
Except as otherwise provided by law, each insurer or person from whom information is sought, and each officer, director, or agent of that insurer or person, shall provide the commissioner with convenient and free access to all books, records, accounts, papers, documents, and any computer or other recordings relating to the property, assets, business, and affairs of the insurer or person.(g)
Each officer, director, employee, insurance producer, and agent of an insurer or person described by Subsection (f) shall, to the extent of that individual’s ability, facilitate and aid in a department market conduct action.
Source:
Section 751.153 — Protocols for Market Conduct Actions, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.751.htm#751.153 (accessed Apr. 29, 2024).
