CHAPTER 101. UNAUTHORIZED INSURANCE

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INSURANCE CODE

TITLE 2. TEXAS DEPARTMENT OF INSURANCE

SUBTITLE B. DISCIPLINE AND ENFORCEMENT

CHAPTER 101. UNAUTHORIZED INSURANCE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 101.001. STATE POLICY AND PURPOSE. (a) It is a state

concern that many residents of this state hold insurance policies

issued by persons or insurers who are not authorized to do

insurance business in this state and who are not qualified as

eligible surplus lines insurers under Chapter 981. These

residents face often insurmountable obstacles in asserting legal

rights under the policies in foreign forums under unfamiliar laws

and rules of practice.

(b) It is the policy of this state to protect residents against

acts by a person or insurer who is not authorized to do insurance

business in this state by:

(1) maintaining fair and honest insurance markets;

(2) protecting the premium tax revenues of this state;

(3) protecting authorized persons and insurers, who are subject

to strict regulation, from unfair competition by unauthorized

persons and insurers; and

(4) protecting against evasion of the insurance regulatory laws

of this state.

and persons to the jurisdiction of:

(1) the commissioner and proceedings before the commissioner;

and

(2) the courts of this state in suits by or on behalf of the

state or an insured or beneficiary under an insurance contract.

(d) It is also a concern that this state not become a safe

harbor for persons or insurers engaged in the unauthorized

business of insurance in this state, regardless of whether the

insureds or other persons affected by the unauthorized business

of insurance are residents of this state.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 671, Sec. 1, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 0, 21, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.005, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.014, eff. April 1, 2009.

Sec. 101.002. DEFINITIONS. In this chapter:

(1) "Insurer" includes:

(A) a corporation, association, partnership, or individual

engaged as a principal in the business of insurance;

(B) an interinsurance exchange or mutual benefit society; or

(2) "Unfair act" means an unfair method of competition or an

unfair or deceptive act or practice as defined under Chapter 541

or a rule adopted under that chapter.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.015, eff. April 1, 2009.

Sec. 101.003. INSURANCE EXCHANGES AND SYNDICATES; RULES. The

commissioner shall adopt rules defining insurance exchanges and

syndicates that are insurers for purposes of Section 101.002.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.004. UNCONSTITUTIONAL APPLICATION PROHIBITED; NOTICE TO

COMMISSIONER. (a) Subject to Subsection (b), this chapter does

not apply to an insurer or other person to whom, under the

constitution or statutes of the United States or the constitution

of this state, it may not apply.

(b) Before commencing operations, an insurer or other person

claiming an exemption described by Subsection (a) must file with

the commissioner:

(1) notice of the claim; and

(2) documents supporting the claim.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. BUSINESS OF INSURANCE; EXCEPTIONS

Sec. 101.051. CONDUCT THAT CONSTITUTES THE BUSINESS OF

INSURANCE. (a) In this section, "medical expense" includes

surgical, chiropractic, physical therapy, speech pathology,

audiology, professional mental health, dental, hospital, or

optometric expenses.

(b) The following acts in this state constitute the business of

insurance in this state:

(1) making or proposing to make, as an insurer, an insurance

contract;

(2) making or proposing to make, as guarantor or surety, a

guaranty or suretyship contract as a vocation and not merely

incidental to another legitimate business or activity of the

guarantor or surety;

(3) taking or receiving an insurance application;

(4) receiving or collecting any consideration for insurance,

including:

(A) a premium;

(B) a commission;

(D) an assessment; or

(E) dues;

(5) issuing or delivering an insurance contract to:

(A) a resident of this state; or

(B) a person authorized to do business in this state;

(6) directly or indirectly acting as an agent for or otherwise

representing or assisting an insurer or person in:

(A) soliciting, negotiating, procuring, or effectuating

insurance or a renewal of insurance;

(B) disseminating information relating to coverage or rates;

(D) delivering an insurance policy or contract;

(E) inspecting a risk;

(F) setting a rate;

(G) investigating or adjusting a claim or loss;

(H) transacting a matter after the effectuation of the contract

that arises out of the contract; or

(I) representing or assisting an insurer or person in any other

manner in the transaction of insurance with respect to a subject

of insurance that is resident, located, or to be performed in

this state;

(7) contracting to provide in this state indemnification or

expense reimbursement for a medical expense by direct payment,

reimbursement, or otherwise to a person domiciled in this state

or for a risk located in this state, whether as an insurer,

agent, administrator, trust, or funding mechanism or by another

method;

(8) doing any kind of insurance business specifically recognized

as constituting insurance business within the meaning of statutes

relating to insurance;

(9) doing or proposing to do any insurance business that is in

substance equivalent to conduct described by Subdivisions (1)-(8)

in a manner designed to evade statutes relating to insurance; or

(10) any other transaction of business in this state by an

insurer.

unauthorized person or insurer that occurs in this state and that

affects a person in another state or jurisdiction constitutes the

business of insurance in this state.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 671, Sec. 2, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 22, eff. June

1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.006, eff. Sept.

1, 2001.

Sec. 101.052. ADVERTISING RELATING TO MEDICARE SUPPLEMENT

BENEFIT PLANS. With respect to a Medicare supplement benefit

plan authorized under Chapter 1652, the business of insurance in

this state includes using, creating, publishing, mailing, or

disseminating in this state an advertisement relating to an act

that constitutes the business of insurance under Section 101.051

unless the advertisement is used, created, published, mailed, or

disseminated on behalf of an insurer or person who:

(1) is authorized under this code to engage in the business of

insurance in this state;

(2) has actual knowledge of the content of the advertisement;

(3) has authorized the advertisement to be used, created,

published, mailed, or disseminated on that insurer's or person's

behalf; and

(4) is clearly identified by name in the advertisement as the

sponsor of the advertisement.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 23, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.007, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.016, eff. April 1, 2009.

Sec. 101.053. APPLICATION OF SUBCHAPTER. (a) Sections 101.051

and 101.052 apply to an act whether performed by mail or

otherwise. Venue for an act performed by mail is at the place

where the matter transmitted by mail is delivered and takes

effect.

(b) Sections 101.051 and 101.052 do not apply to:

(1) the lawful transaction of surplus lines insurance under

Chapter 981;

(2) the lawful transaction of reinsurance by insurers;

(3) a transaction in this state that:

(A) involves a policy that:

(i) is lawfully solicited, written, and delivered outside this

state; and

(ii) covers, at the time the policy is issued, only subjects of

insurance that are not resident, located, or expressly to be

performed in this state; and

(B) takes place after the policy is issued;

(4) a transaction:

(A) that involves an insurance contract independently procured

by the insured from an insurance company not authorized to do

insurance business in this state through negotiations occurring

entirely outside this state;

(B) that is reported; and

(5) a transaction in this state that:

(A) involves group life, health, or accident insurance, other

than credit insurance, and group annuities in which the master

policy for the group was lawfully issued and delivered in a state

in which the insurer or person was authorized to do insurance

business; and

(B) is authorized by a statute of this state;

(6) an activity in this state by or on the sole behalf of a

nonadmitted captive insurance company that insures solely:

(A) directors' and officers' liability insurance for the

directors and officers of the company's parent and affiliated

companies;

(B) the risks of the company's parent and affiliated companies;

(A) and (B);

(7) the issuance of a qualified charitable gift annuity under

Chapter 102; or

(8) a lawful transaction by a servicing company of the Texas

workers' compensation employers' rejected risk fund under Section

4.08, Article 5.76-2, as that article existed before its repeal.

the payment of an applicable tax on premium or from another

applicable provision of this code.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 411, Sec. 1, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 24,, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.008, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 209, Sec. 9, eff. Oct.

1, 2003; Acts 2003, 78th Leg., ch. 1274, Sec. 13, eff. April 1,

2005.

Sec. 101.054. EXCEPTION; FULL-TIME SALARIED EMPLOYEE. Section

101.051(b)(6) does not prohibit a full-time salaried employee of

a corporate insured from acting as an insurance manager or buyer

in placing insurance on behalf of:

(1) the employee's employer; or

(2) a parent or affiliated company of the employer.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.055. EXCEPTION; CERTAIN ENTITIES THAT REIMBURSE MEDICAL

EXPENSES. (a) Section 101.051(b)(7) does not apply to:

(1) a program otherwise authorized by law that is established:

(A) by a political subdivision of this state;

(B) by a state agency; or

(2) a multiple employer welfare arrangement that is fully

insured as defined by 29 U.S.C. Section 1144(b)(6).

(b) Notwithstanding Subsection (a)(2), the commissioner may

apply a law regulating the business of insurance to a multiple

employer welfare arrangement described by that subdivision to the

extent that the law provides:

(1) standards requiring the maintenance of specified levels of

contributions that the plan, or a trust established under the

plan, must meet to be considered able to pay benefits in full

when due; and

(2) provisions to enforce the standards described by Subdivision

(1).

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER C. PROHIBITION; ENFORCEMENT

Sec. 101.101. DEFINITION. In this subchapter, "person" means an

individual or entity that is a person for purposes of Section

541.002.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.017, eff. April 1, 2009.

Sec. 101.102. UNAUTHORIZED INSURANCE PROHIBITED. (a) A person,

including an insurer, may not directly or indirectly do an act

that constitutes the business of insurance under this chapter

except as authorized by statute.

(b) With respect to insurance of a subject that is resident,

located, or to be performed in this state, this section does not

prohibit an act performed outside this state, including the

collection of premiums, by a person, including an insurer,

authorized to do business in this state if the transaction and

insurance contract otherwise comply with statute.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.103. POWERS OF COMMISSIONER; REMEDIES FOR CERTAIN

CONDUCT. (a) If the commissioner has reason to believe a

person, including an insurer, has violated or is threatening to

violate this chapter or Chapter 226 or a rule adopted under this

chapter or Chapter 226, or that a person, including an insurer,

violating this chapter or Chapter 226 has engaged in or is

threatening to engage in an unfair act, the commissioner may:

(1) issue a cease and desist order under Subchapter D;

(2) seek injunctive relief under Section 101.105;

(3) request the attorney general to recover a civil penalty

under Section 101.105; or

(4) take any combination of those actions.

(b) This section does not limit the department to the remedies

specified in this section. The department and this state may

choose at any time, without regard to prior proceedings under

this section, any available remedy or action to immediately stop

or enjoin a person from engaging in the business of insurance

without statutory authorization.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1274, Sec. 14, eff.

April 1, 2005.

Sec. 101.104. REQUEST FOR INFORMATION. If the commissioner has

reason to believe that a person, including an insurer, is

performing an act described by Section 101.051 or 101.052, the

person shall immediately provide to the commissioner, on written

request of the commissioner, information relating to that act.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.105. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A person

or entity, including an insurer, that violates this chapter or

Chapter 226 is subject to a civil penalty of not more than

$10,000 for each act of violation and for each day of violation.

(b) The commissioner may request that the attorney general

institute a civil suit in a district court in Travis County for

injunctive relief to restrain a person or entity, including an

insurer, from continuing a violation or threat of violation

described by Section 101.103(a). On application for injunctive

relief and a finding that a person or entity, including an

insurer, is violating or threatening to violate this chapter or

Chapter 226, the district court shall grant the injunctive relief

and issue an injunction without bond.

institute and conduct a civil suit in the name of the state for

injunctive relief, to recover a civil penalty, or for both

injunctive relief and a civil penalty, as authorized under this

subchapter.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1274, Sec. 15, eff.

April 1, 2005.

Sec. 101.106. CRIMINAL PENALTY. (a) A person, including an

insurer, who intentionally, knowingly, or recklessly violates

Section 101.102 commits an offense.

(b) An offense under this section is a felony of the third

degree.

Section 101.051 or 101.052, as applicable, by its terms does not

apply to the person charged.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

819, Sec. 1, eff. June 17, 2005.

SUBCHAPTER D. CEASE AND DESIST ORDERS

Sec. 101.151. POWERS OF COMMISSIONER; NOTICE OF HEARING. (a)

The commissioner may set a hearing on whether to issue a cease

and desist order under Section 101.153 if the commissioner has

reason to believe that:

(1) an insurer or person has violated or is threatening to

violate this chapter or a rule adopted under this chapter; or

(2) an insurer or person acting in violation of this chapter has

engaged in or is threatening to engage in an unfair act.

(b) The commissioner shall serve on the insurer or person a

statement of charges and a notice of hearing in the form provided

by Section 2001.052, Government Code, and applicable rules of the

commissioner.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 25, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.009, eff.

Sept. 1, 2001.

Sec. 101.152. HEARING. (a) Except as agreed by the parties

with prior written approval of the commissioner, a hearing under

this subchapter must be held not earlier than the fifth day or

later than the 30th day after the date of service of the

statement and notice required under Section 101.151.

(b) The hearing shall be conducted in the manner provided for a

contested case under Chapter 2001, Government Code, and the

commissioner's rules.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.153. CEASE AND DESIST ORDER. After a hearing held

under this subchapter, the commissioner may issue against the

insurer or person charged with a violation an order that requires

that the insurer or person immediately cease and desist from the

violation.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 26, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.010, eff.

Sept. 1, 2001.

Sec. 101.154. ENFORCEMENT; REFERRAL TO ATTORNEY GENERAL. The

commissioner may refer the matter to the attorney general for

enforcement if the commissioner has reason to believe that an

insurer or person has:

(1) violated a cease and desist order issued under this

subchapter; or

(2) failed to pay an assessed penalty.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 27, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.011, eff.

Sept. 1, 2001.

Sec. 101.155. EFFECT OF PRIOR PROCEEDINGS. The commissioner and

department may proceed under this chapter or any other applicable

law without regard to prior proceedings.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 101.156. RULES. The commissioner may adopt reasonable

rules necessary to implement this subchapter.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER E. INSURANCE CONTRACTS WITH UNAUTHORIZED INSURERS

Sec. 101.201. VALIDITY OF INSURANCE CONTRACTS. (a) 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.

(b) 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 and independently procured

contracts of insurance, as described in Section 101.053(b)(4),

that are reported and on which premium tax is paid in accordance

with Chapter 225 or 226.

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.

Sec. 101.202. ATTORNEY'S FEES. (a) In an action against an

unauthorized insurer or unauthorized person on a contract of

insurance issued or delivered in this state to a resident of this

state or to a corporation authorized to do business in this

state, the court may award to the plaintiff a reasonable

attorney's fee if:

(1) the insurer or person failed, for at least 30 days after a

demand made before the commencement of the action, to make

payment under the contract's terms; and

(2) the failure to make the payment was vexatious and without

reasonable cause.

(b) An insurer's or person's failure to defend an action

described by Subsection (a) is prima facie evidence that the

failure to make payment was vexatious and without reasonable

cause.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 28, eff.

June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.013, eff.

Sept. 1, 2001.

Sec. 101.203. INVESTIGATION AND DISCLOSURE. (a) If the

commissioner has reason to believe that insurance has been

effectuated by or for a person in this state with an unauthorized

insurer, the commissioner shall in writing order the person to:

(1) produce for examination all insurance contracts and other

documents evidencing insurance with both authorized and

unauthorized insurers; and

(2) disclose to the commissioner:

(A) the amount of insurance;

(B) the name and address of each insurer;

(D) the name and address of each person assisting in the

solicitation, negotiation, or effectuation of the insurance.

(b) A person who fails to comply with a written order under

Subsection (a) before the 31st day after the date of the order or

who wilfully makes a disclosure that is untrue, deceptive, or

misleading shall forfeit:

(1) $50; and

(2) an additional $50 for each day the person continues to fail

to comply after expiration of the 30-day period.

(1) a transaction in this state that:

(A) involves a policy that:

(i) is lawfully solicited, negotiated, written, and delivered

outside this state; and

(ii) covers, at the time the policy is issued, only subjects of

insurance that are not resident, located, or expressly to be

performed in this state; and

(B) takes place after the policy is issued; or

(2) surplus lines insurance procured through eligible surplus

lines insurers as defined by Section 981.002.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.018, eff. April 1, 2009.

SUBCHAPTER G. REPORTING OF UNAUTHORIZED INSURANCE

Sec. 101.301. REPORTING REQUIRED. (a) A person investigating

or adjusting a loss or claim on a subject of insurance in this

state shall immediately report to the department an insurance

policy or contract that has been entered into by an insurer that

is not authorized to transact the insurance in this state.

(b) This section does not apply to:

(1) a transaction described by Section 101.053(b)(4); or

(2) surplus lines insurance procured through eligible surplus

lines insurers as defined by Section 981.002.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2B.019, eff. April 1, 2009.

SUBCHAPTER H. CERTAIN PROCEEDINGS; BOND REQUIREMENTS

Sec. 101.351. DEFINITIONS. (a) In this subchapter, "court

proceeding" includes an action or suit.

(b) The definition of "state" assigned by Section 311. 005,

Government Code, does not apply in this chapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

Sec. 101.352. APPLICABILITY. This subchapter applies only to a

court or administrative proceeding against an unauthorized person

or insurer in which the person or insurer was served under

Section 804.107.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

Sec. 101.353. BOND REQUIREMENT FOR COURT PROCEEDING. (a)

Except as provided by Subsection (c), before an unauthorized

person or insurer may file a pleading in a court proceeding to

which this subchapter applies, the person or insurer must deposit

cash or securities or file a bond with good and sufficient

sureties approved by the court in an amount determined by the

court as sufficient to pay any final judgment that may be

rendered in the proceeding.

(b) An unauthorized person or insurer must file the deposit

required by this section with the clerk of the court in which the

proceeding is pending.

required by this section if the unauthorized person or insurer

demonstrates to the court's satisfaction that the person or

insurer maintains sufficient available funds or securities in a

state in the United States, in trust or otherwise, to satisfy any

final judgment that may be rendered in the proceeding.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

Sec. 101.354. BOND REQUIREMENT FOR ADMINISTRATIVE PROCEEDING.

(a) Except as provided by Subsection (c), before an unauthorized

person or insurer may file a pleading in an administrative

proceeding of the department to which this subchapter applies,

the person or insurer must, if required by statute, deposit cash

or securities or file a bond with good and sufficient sureties

approved by the commissioner in an amount determined by the

commissioner as sufficient to pay any final order that may be

entered in the proceeding.

(b) An unauthorized person or insurer must file the deposit

required by this section with the chief clerk of the department.

bond required by this section if the unauthorized person or

insurer demonstrates to the commissioner's satisfaction that the

person or insurer maintains sufficient available funds or

securities in a state in the United States, in trust or

otherwise, to satisfy any final order that may be entered in the

proceeding.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

Sec. 101.355. POSTPONEMENT. A court or the commissioner may

order any postponement necessary to afford an unauthorized person

or insurer a reasonable opportunity to:

(1) comply with Section 101.353 or 101.354, as appropriate; and

(2) defend that court or administrative proceeding.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

Sec. 101.356. MOTION TO QUASH. Sections 101.353 and 101.354 do

not prevent an unauthorized person or insurer from filing a

motion to quash a writ or to set aside service made under Section

804.107 on the ground that the person or insurer has not engaged

in the business of insurance as described by Section 101.051.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,

2003.

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