Tex.
Ins. Code Section 841.705
Penalty for Failure to Invest or Report
(a)
In addition to the penalty provided by this subchapter, an insurance company is subject to a penalty as prescribed by Subsection (b) if, while holding a certificate of authority to engage in the business of insurance in this state, or after the company ceases to write new business or ceases to hold a certificate of authority, the company intentionally fails or refuses to:(1)
make the investments required by Chapter 425 (Reserves and Investments for Life Insurance);(2)
make a report required by a law described by Section 841.002 (Applicability of Chapter and Other Law);(3)
make any special report requested by the commissioner under a law described by Section 841.002 (Applicability of Chapter and Other Law); or(4)
comply with another provision of a law described by Section 841.002 (Applicability of Chapter and Other Law).(b)
A penalty under this section is in the amount of $25 per day for each day the company remains in default after the commissioner notifies the company of the default in the manner provided by this subchapter.(c)
A penalty under this section may be recovered in a suit brought by the attorney general on behalf of the state in a district court of Travis County.(d)
In a suit brought to recover a penalty under this section:(1)
there are rebuttable presumptions that:(A)
any default that may have occurred was intentional; and(B)
the notice required by Subsection (b) was given; and(2)
if the question of whether the investments required by Chapter 425 (Reserves and Investments for Life Insurance) were made is at issue, the defendant insurance company has the burden of proving that the investments were made as required by that chapter.
Source:
Section 841.705 — Penalty for Failure to Invest or Report, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.841.htm#841.705 (accessed Jun. 5, 2024).
