State Codes and Statutes
Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-550-prohibited-practices-relating-to-payments
INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 550. PROHIBITED PRACTICES RELATING TO PAYMENTS
Sec. 550.001. SOLICITATION OR COLLECTION OF CERTAIN PAYMENTS.
(a) An insurer or an insurer's agent or sponsoring organization
may not solicit or collect, in connection with an application for
insurance or the issuance of a policy, a payment other than:
(1) a premium;
(2) a tax;
(3) a finance charge;
(4) a policy fee;
(5) an agent fee;
(6) a service fee, including a charge for costs described by
Section 4005.003;
(7) an inspection fee; or
(8) membership dues in a sponsoring organization.
(b) The commissioner by rule shall permit a sponsoring
organization to solicit a voluntary contribution with a
membership renewal solicitation if the membership renewal
solicitation is separate from an insurance billing.
(c) Except as otherwise provided by statute, an insurer may
require that membership dues in its sponsoring organization be
paid as a condition for issuance or renewal of an insurance
policy.
(d) Criminal penalties for a violation of this section are the
same as criminal penalties provided for a violation under
Subchapter K, Chapter 823.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Sec. 550.002. INCREASE IN CERTAIN PREMIUM PAYMENTS. (a) In
this section:
(1) "Account" means a person's account in a financial
institution.
(2) "Financial institution" means a state or national bank, a
state or federal savings and loan association or corporation, or
a state or federal credit union.
(3) "Insurer" means a person or entity engaged in the business
of insurance in this state as described by Chapter 101. The term
includes a person or entity engaged in the business of surplus
lines insurance in this state.
(4) "Person" means an insured, a policy or certificate holder,
or an owner of an insurance policy or certificate.
(b) An insurer receiving automatic premium payments through
withdrawal of funds from a person's account, including an escrow
account, as authorized by that person to pay premiums on
insurance coverage provided through that insurer, may not
increase the amount of funds to be withdrawn from the account to
pay premiums on that coverage unless the insurer, not later than
the 30th day before the effective date of the increase in the
premium payment amount, notifies the person of the increase by
mailing a notice through the United States Postal Service.
(b-1) The notice must include the insurer's toll-free telephone
number, mailing address, and electronic mail address, if
applicable, through which the person may object to the increase
described by Subsection (b). An objection made by the
policyholder through a telephone call, mail, or electronic mail
constitutes a valid objection for purposes of this section.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account only if the insurer does not receive a
valid objection to the increase on or before the fifth day before
the date on which the increase is scheduled to take effect.
(c) This section does not require an insurer to notify a person
of an increase in a premium payment amount if:
(1) the insurance contract or certificate:
(A) when issued contains a schedule of increasing premiums;
(B) expressly specifies the exact amount of each premium; and
(C) specifies the period for which each premium is payable; or
(2) the increase is the result of a change ordered by the
insured.
(d) This section does not apply to an increase in a premium
payment that is less than $10 or 10 percent of the previous
amount per month.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1167, Sec. 1, eff. June 19, 2009.
State Codes and Statutes
Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-550-prohibited-practices-relating-to-payments
INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 550. PROHIBITED PRACTICES RELATING TO PAYMENTS
Sec. 550.001. SOLICITATION OR COLLECTION OF CERTAIN PAYMENTS.
(a) An insurer or an insurer's agent or sponsoring organization
may not solicit or collect, in connection with an application for
insurance or the issuance of a policy, a payment other than:
(1) a premium;
(2) a tax;
(3) a finance charge;
(4) a policy fee;
(5) an agent fee;
(6) a service fee, including a charge for costs described by
Section 4005.003;
(7) an inspection fee; or
(8) membership dues in a sponsoring organization.
(b) The commissioner by rule shall permit a sponsoring
organization to solicit a voluntary contribution with a
membership renewal solicitation if the membership renewal
solicitation is separate from an insurance billing.
(c) Except as otherwise provided by statute, an insurer may
require that membership dues in its sponsoring organization be
paid as a condition for issuance or renewal of an insurance
policy.
(d) Criminal penalties for a violation of this section are the
same as criminal penalties provided for a violation under
Subchapter K, Chapter 823.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Sec. 550.002. INCREASE IN CERTAIN PREMIUM PAYMENTS. (a) In
this section:
(1) "Account" means a person's account in a financial
institution.
(2) "Financial institution" means a state or national bank, a
state or federal savings and loan association or corporation, or
a state or federal credit union.
(3) "Insurer" means a person or entity engaged in the business
of insurance in this state as described by Chapter 101. The term
includes a person or entity engaged in the business of surplus
lines insurance in this state.
(4) "Person" means an insured, a policy or certificate holder,
or an owner of an insurance policy or certificate.
(b) An insurer receiving automatic premium payments through
withdrawal of funds from a person's account, including an escrow
account, as authorized by that person to pay premiums on
insurance coverage provided through that insurer, may not
increase the amount of funds to be withdrawn from the account to
pay premiums on that coverage unless the insurer, not later than
the 30th day before the effective date of the increase in the
premium payment amount, notifies the person of the increase by
mailing a notice through the United States Postal Service.
(b-1) The notice must include the insurer's toll-free telephone
number, mailing address, and electronic mail address, if
applicable, through which the person may object to the increase
described by Subsection (b). An objection made by the
policyholder through a telephone call, mail, or electronic mail
constitutes a valid objection for purposes of this section.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account only if the insurer does not receive a
valid objection to the increase on or before the fifth day before
the date on which the increase is scheduled to take effect.
(c) This section does not require an insurer to notify a person
of an increase in a premium payment amount if:
(1) the insurance contract or certificate:
(A) when issued contains a schedule of increasing premiums;
(B) expressly specifies the exact amount of each premium; and
(C) specifies the period for which each premium is payable; or
(2) the increase is the result of a change ordered by the
insured.
(d) This section does not apply to an increase in a premium
payment that is less than $10 or 10 percent of the previous
amount per month.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1167, Sec. 1, eff. June 19, 2009.
State Codes and Statutes
Statutes >
Texas >
Insurance-code >
Title-5-protection-of-consumer-interests >
Chapter-550-prohibited-practices-relating-to-payments INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 550. PROHIBITED PRACTICES RELATING TO PAYMENTS
Sec. 550.001. SOLICITATION OR COLLECTION OF CERTAIN PAYMENTS.
(a) An insurer or an insurer's agent or sponsoring organization
may not solicit or collect, in connection with an application for
insurance or the issuance of a policy, a payment other than:
(1) a premium;
(2) a tax;
(3) a finance charge;
(4) a policy fee;
(5) an agent fee;
(6) a service fee, including a charge for costs described by
Section 4005.003;
(7) an inspection fee; or
(8) membership dues in a sponsoring organization.
(b) The commissioner by rule shall permit a sponsoring
organization to solicit a voluntary contribution with a
membership renewal solicitation if the membership renewal
solicitation is separate from an insurance billing.
(c) Except as otherwise provided by statute, an insurer may
require that membership dues in its sponsoring organization be
paid as a condition for issuance or renewal of an insurance
policy.
(d) Criminal penalties for a violation of this section are the
same as criminal penalties provided for a violation under
Subchapter K, Chapter 823.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Sec. 550.002. INCREASE IN CERTAIN PREMIUM PAYMENTS. (a) In
this section:
(1) "Account" means a person's account in a financial
institution.
(2) "Financial institution" means a state or national bank, a
state or federal savings and loan association or corporation, or
a state or federal credit union.
(3) "Insurer" means a person or entity engaged in the business
of insurance in this state as described by Chapter 101. The term
includes a person or entity engaged in the business of surplus
lines insurance in this state.
(4) "Person" means an insured, a policy or certificate holder,
or an owner of an insurance policy or certificate.
(b) An insurer receiving automatic premium payments through
withdrawal of funds from a person's account, including an escrow
account, as authorized by that person to pay premiums on
insurance coverage provided through that insurer, may not
increase the amount of funds to be withdrawn from the account to
pay premiums on that coverage unless the insurer, not later than
the 30th day before the effective date of the increase in the
premium payment amount, notifies the person of the increase by
mailing a notice through the United States Postal Service.
(b-1) The notice must include the insurer's toll-free telephone
number, mailing address, and electronic mail address, if
applicable, through which the person may object to the increase
described by Subsection (b). An objection made by the
policyholder through a telephone call, mail, or electronic mail
constitutes a valid objection for purposes of this section.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account only if the insurer does not receive a
valid objection to the increase on or before the fifth day before
the date on which the increase is scheduled to take effect.
(c) This section does not require an insurer to notify a person
of an increase in a premium payment amount if:
(1) the insurance contract or certificate:
(A) when issued contains a schedule of increasing premiums;
(B) expressly specifies the exact amount of each premium; and
(C) specifies the period for which each premium is payable; or
(2) the increase is the result of a change ordered by the
insured.
(d) This section does not apply to an increase in a premium
payment that is less than $10 or 10 percent of the previous
amount per month.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1,
2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1167, Sec. 1, eff. June 19, 2009.
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