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Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-562-unfair-methods-of-competition-and-unfair-or-deceptive-acts-or-practices-regarding-discou

INSURANCE CODE

TITLE 5. PROTECTION OF CONSUMER INTERESTS

SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES

CHAPTER 562. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING

DISCOUNT HEALTH CARE PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 562.001. PURPOSE. The purpose of this chapter is to

regulate trade practices in the business of discount health care

programs by:

(1) defining or providing for the determination of trade

practices in this state that are unfair methods of competition or

unfair or deceptive acts or practices; and

(2) prohibiting those unfair or deceptive trade practices.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.002. DEFINITIONS. In this chapter:

(1) "Advertisement, solicitation, or marketing material" means

material that is made, published, disseminated, circulated, or

placed before the public:

(A) in a newspaper, magazine, or other publication;

(B) in a notice, circular, pamphlet, letter, or poster;

(C) over a radio or television station;

(D) through the Internet;

(E) in a telephone sales script; or

(F) in any other manner.

(2) "Discount health care program" means a business arrangement

or contract in which an entity, in exchange for fees, dues,

charges, or other consideration, offers its members access to

discounts on health care services provided by health care

providers. The term does not include an insurance policy,

certificate of coverage, or other product otherwise regulated by

the department or a self-funded or self-insured employee benefit

plan.

(3) "Discount health care program operator" means a person who,

in exchange for fees, dues, charges, or other consideration,

operates a discount health care program and contracts with

providers, provider networks, or other discount health care

program operators to offer access to health care services at a

discount and determines the charge to members.

(4) "Health care services" includes physician care, inpatient

care, hospital surgical services, emergency services, ambulance

services, laboratory services, audiology services, dental

services, vision services, mental health services, substance

abuse services, chiropractic services, and podiatry services, and

the provision of medical equipment and supplies, including

prescription drugs.

(5) "Marketer" means a person who sells or distributes, or

offers to sell or distribute, a discount health care program,

including a private label entity that places its name on and

markets or distributes a discount health care program, but does

not operate a discount health care program.

(6) "Member" means a person who pays fees, dues, charges, or

other consideration for the right to participate in a discount

health care program.

(7) "Person" means an individual, corporation, association,

partnership, or other legal entity.

(8) "Program operator" means a discount health plan program

operator.

(9) "Provider" means a person who is licensed or otherwise

authorized to provide health care services in this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.003. VENUE FOR ACTIONS INVOLVING DEPARTMENT OR

COMMISSIONER. An action under this chapter in which the

department or commissioner is a party must be brought in a

district court in Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.004. APPLICABILITY. Except as otherwise provided by

this chapter, a program operator, including the operator of a

freestanding discount health care program or a discount health

care program marketed by an insurer or a health maintenance

organization, shall comply with this chapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.005. LIBERAL CONSTRUCTION. This chapter shall be

liberally construed and applied to promote the underlying

purposes as provided by Section 562.001.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES DEFINED

Sec. 562.051. MISREPRESENTATION REGARDING DISCOUNT HEALTH CARE

PROGRAM. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to:

(1) misrepresent the price range of discounts offered by the

discount health care program;

(2) misrepresent the size or location of the program's network

of providers;

(3) misrepresent the participation of a provider in the

program's network;

(4) suggest that a discount card offered through the program is

a federally approved Medicare prescription discount card;

(5) use the term "insurance," except as:

(A) a disclaimer of any relationship between the discount health

care program and insurance; or

(B) a description of an insurance product connected with a

discount health care program; or

(6) use the term "health plan," "coverage," "copay,"

"copayments," "deductible," "preexisting conditions," "guaranteed

issue," "premium," "PPO," or "preferred provider organization,"

or another similar term, in a manner that could reasonably

mislead an individual into believing that the discount health

care program is health insurance or provides coverage similar to

health insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.052. FALSE INFORMATION AND ADVERTISING. It is an

unfair method of competition or an unfair or deceptive act or

practice in the business of discount health care programs to

make, publish, disseminate, circulate, or place before the public

or directly or indirectly cause to be made, published,

disseminated, circulated, or placed before the public an

advertisement, solicitation, or marketing material containing an

untrue, deceptive, or misleading assertion, representation, or

statement regarding the discount health care program.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.053. FAILURE TO REGISTER OR RENEW REGISTRATION; FALSE

REGISTRATION OR RENEWAL STATEMENT. (a) It is an unfair method

of competition or an unfair or deceptive act or practice in the

business of discount health care programs to:

(1) fail to register or renew registration as required under

Chapter 7001; or

(2) with intent to deceive:

(A) file with the department a false statement in connection

with an application for registration as a program operator under

Chapter 7001; or

(B) file with the department a false statement in connection

with an application for renewal of a registration as a program

operator under Chapter 7001.

(b) The commissioner may impose on a person operating a discount

health care program for the person's failure to register or renew

registration as required under Chapter 7001 any remedy that the

commissioner is authorized to impose under Chapter 101 for the

unauthorized business of insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.054. MISREPRESENTATION OF DISCOUNT HEALTH CARE

PROGRAMS. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to misrepresent a discount health care program by:

(1) making an untrue statement of material fact;

(2) failing to state a material fact necessary to make other

statements made not misleading, considering the circumstances

under which the statements were made;

(3) making a statement in a manner that would mislead a

reasonably prudent person to a false conclusion of a material

fact;

(4) making a material misstatement of law; or

(5) failing to disclose a matter required by law to be

disclosed, including failing to make an applicable disclosure

required by this code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. REGULATION OF PRACTICES

Sec. 562.101. UNFAIR METHODS OF COMPETITION AND UNFAIR OR

DECEPTIVE ACTS OR PRACTICES PROHIBITED. A person may not engage

in this state in a trade practice that is defined in this chapter

as or determined under this chapter to be an unfair method of

competition or an unfair or deceptive act or practice in the

business of discount health care programs.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.102. PROHIBITED CONTENT OF CERTAIN DISCOUNT HEALTH CARE

PROGRAM ADVERTISING, SOLICITATION, OR MARKETING. Notwithstanding

any other provision of this code, it is unlawful for a program

operator or marketer to advertise, solicit, or market a discount

health care program containing the words "approved by the Texas

Department of Insurance" or words with a similar meaning.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.103. PROGRAM OPERATOR DUTIES. (a) A program operator

shall:

(1) provide a toll-free telephone number and Internet website

for members to obtain information about the discount health care

program and confirm or find providers currently participating in

the program; and

(2) remove a provider from the discount health care program not

later than the 30th day after the date the program operator

learns that the provider is no longer participating in the

program or has lost the authority to provide services or

products.

(b) A program operator shall issue at least one membership card

to serve as proof of membership in the discount health care

program that must:

(1) contain a clear and conspicuous statement that the discount

health care program is not insurance; and

(2) if the discount health care program includes discount

prescription drug benefits, include:

(A) the name or logo of the entity administering the

prescription drug benefits;

(B) the international identification number assigned by the

American National Standards Institute for the entity

administering the prescription drug benefits;

(C) the group number applicable to the member; and

(D) a telephone number to be used to contact an appropriate

person to obtain information relating to the prescription drug

benefits provided under the program.

(c) Not later than the 15th day after the date of enrollment, a

program operator shall issue at least one set of disclosure

materials describing the terms and conditions of the discount

health care program to each household in which a person is a

member, including a statement that:

(1) the discount health care program is not insurance, with the

word "not" capitalized;

(2) the member is required to pay the entire amount of the

discounted rate;

(3) the discount health care program does not guarantee the

quality of the services or products offered by individual

providers; and

(4) if the member remains dissatisfied after completing the

discount health care program's complaint system, the member may

contact the member's state insurance department.

(d) A program operator shall ensure that an application form or

other membership agreement:

(1) clearly and conspicuously discloses the duration of

membership and the amount of payments the member is obligated to

make for the membership; and

(2) contains a clear and conspicuous statement that the discount

health care program is not insurance.

(e) A program operator shall allow any member who cancels a

membership in the discount health care program not later than the

30th day after the date the person becomes a member to receive a

refund, not later than the 30th day after the date the program

operator receives a valid cancellation notice and returned

membership card, of all periodic membership charges paid by that

member to the program operator and the amount of any one-time

enrollment fee that exceeds $50.

(f) A program operator shall:

(1) maintain a surety bond, payable to the department for the

use and benefit of members in a manner prescribed by the

department, in the principal amount of $50,000, except that a

program operator that is an insurer that holds a certificate of

authority under Title 6 is not required to maintain the surety

bond;

(2) maintain an agent for service of process in this state; and

(3) establish and operate a fair and efficient procedure for

resolution of complaints regarding the availability of contracted

discounts or services or other matters relating to the

contractual obligations of the discount health care program to

its members.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.104. MARKETING OF PROGRAM. (a) A program operator may

market directly or contract with marketers for the distribution

of the program operator's discount health care programs.

(b) A program operator shall enter into a written contract with

a marketer before the marketer begins marketing, promoting,

selling, or distributing the program operator's discount health

care program. The contract must prohibit the marketer from using

an advertisement, solicitation, or other marketing material or a

discount card that has not been approved in advance and in

writing by the program operator.

(c) A program operator must approve in writing before their use

all advertisements, solicitations, or other marketing materials

and all discount cards used by marketers to market, promote,

sell, or distribute the discount health care program.

(d) Each advertisement, solicitation, or marketing material of a

discount health care program must clearly and conspicuously state

that the discount health care program is not insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.105. CONTRACT REQUIREMENTS. (a) A program operator

shall contract, directly or indirectly, with a provider offering

discounted health care services or products under the discount

health care program. The written contract must contain all of

the following provisions:

(1) a description of the discounts to be provided to a member;

(2) a provision prohibiting the provider from charging a member

more than the discounted rate agreed to in the written agreement

with the provider; and

(3) a provision requiring the provider to promptly notify the

program operator if the provider no longer participates in the

program or loses the authority to provide services or products.

(b) The program operator may not charge or receive from a

provider any fee or other compensation for entering into the

agreement.

(c) If the program operator contracts with a network of

providers, the program operator shall obtain written assurance

from the network that:

(1) the network has a written agreement with each network

provider that includes a discounted rate that is applicable to a

program operator's discount health care program and contains all

of the terms described in Subsection (a); and

(2) the network is authorized to obligate the network providers

to provide services to members of the discount health care

program.

(d) The program operator shall require the network to:

(1) maintain and provide the program operator on a monthly basis

an up-to-date list of providers in the network; and

(2) promptly remove a provider from its network if the provider

no longer participates or loses the authority to provide services

or products.

(e) The program operator shall maintain a copy of each written

agreement the program operator has with a provider or a network

for at least two years following termination of the agreement.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 561.106. SUBMISSION OF MATERIALS. If the commissioner

reasonably believes that a program operator or a marketer may not

be operating in compliance with this chapter, the commissioner by

order may require the program operator or the marketer to submit

to the commissioner any advertisement, solicitation, or marketing

material, disclosure material, discount card, agreement, or other

document requested by the commissioner.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. DETERMINATION OF UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES; ENFORCEMENT; SANCTIONS AND

PENALTIES

Sec. 562.151. EXAMINATION AND INVESTIGATION. The department may

examine and investigate the affairs of a person engaged in the

business of discount health care programs in this state to

determine whether the person:

(1) has or is engaged in an unfair method of competition or

unfair or deceptive act or practice prohibited by this chapter;

or

(2) has violated Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.152. STATEMENT OF CHARGES; NOTICE OF HEARING. (a)

When the department has reason to believe that a person engaged

in the business of discount health care programs in this state

has engaged or is engaging in this state in an unfair method of

competition or unfair or deceptive act or practice defined by

Subchapter B or has violated Subchapter B or C and that a

proceeding by the department regarding the charges is in the

interest of the public, the department shall issue and serve on

the person:

(1) a statement of the charges; and

(2) a notice of the hearing on the charges, including the time

and place for the hearing.

(b) The department may not hold the hearing before the sixth day

after the date the notice required by Subsection (a)(2) is

served.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.153. HEARING. A person against whom charges are made

under Section 562.152 is entitled at the hearing on the charges

to have an opportunity to be heard and show cause why the

department should not issue an order requiring the person to

cease and desist from:

(1) performing the unfair method of competition or unfair or

deceptive act or practice described in the charges; or

(2) violating Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.154. HEARING PROCEDURES. (a) Nothing in this chapter

requires the observance of formal rules of pleading or evidence

at a hearing under this subchapter.

(b) At a hearing under this subchapter, the department, on a

showing of good cause, shall permit any person to intervene,

appear, and be heard by counsel or in person.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.155. RECORD OF HEARING. (a) At a hearing under this

subchapter, the department may, and at the request of a party to

the hearing shall, make a record of the proceedings and the

evidence presented at the hearing.

(b) If the department does not make a record and a person seeks

judicial review of the decision made at the hearing, the

department shall prepare a statement of the evidence and

proceeding for use on review.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.156. COMPLIANCE WITH SUBPOENA. (a) If a person

refuses to comply with a subpoena issued in connection with a

hearing under this subchapter or refuses to testify with respect

to a matter about which the person may be lawfully interrogated,

on application of the department, a district court in Travis

County or in the county in which the person resides may order the

person to comply with the subpoena or testify.

(b) A court may punish as contempt a person's failure to obey an

order under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.157. DETERMINATION OF VIOLATION. After a hearing under

this subchapter to determine whether a person has engaged in an

unfair method of competition or unfair or deceptive act or

practice prohibited by this chapter, the department shall

determine whether:

(1) the method of competition or the act or practice considered

in the hearing is defined as:

(A) an unfair method of competition or deceptive act or practice

under Subchapter B; or

(B) a false, misleading, or deceptive act or practice under

Section 17.46, Business & Commerce Code; and

(2) the person against whom the charges were made engaged in the

method of competition or act or practice in violation of:

(A) this chapter; or

(B) Subchapter E, Chapter 17, Business & Commerce Code, as

specified in Section 17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.158. CEASE AND DESIST ORDER. On determining that a

person committed a violation described by Section 562.157 or

committed a violation of Subchapter B or C, the department shall:

(1) make written findings; and

(2) issue and serve on the person an order requiring the person

to cease and desist from engaging in the method of competition or

act or practice determined to be a violation or the violation of

Subchapter B or C, as applicable.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.159. MODIFICATION OR SETTING ASIDE OF ORDER. On the

notice and in the manner the department determines proper, the

department may modify or set aside wholly or partly a cease and

desist order issued under Section 562.158 at any time before a

petition appealing the order is filed in accordance with

Subchapter D, Chapter 36.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.160. ADMINISTRATIVE PENALTY FOR VIOLATION OF CEASE AND

DESIST ORDER. (a) A person who violates a cease and desist

order issued under Section 562.158 is subject to an

administrative penalty under Chapter 84.

(b) In determining whether a person has violated a cease and

desist order, the department shall consider the maintenance of

procedures reasonably adapted to ensure compliance with the

order.

(c) An administrative penalty imposed under this section may not

exceed:

(1) $1,000 for each violation; or

(2) $5,000 for all violations.

(d) An order of the department imposing an administrative

penalty under this section applies only to a violation of the

cease and desist order committed before the date the order

imposing the penalty is issued.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.161. CIVIL PENALTY FOR VIOLATION OF CEASE AND DESIST

ORDER. (a) A person who is found by a court to have violated a

cease and desist order issued under Section 562.158 is liable to

the state for a penalty. The state may recover the penalty in a

civil action.

(b) The penalty may not exceed $50 unless the court finds the

violation to be wilful, in which case the penalty may not exceed

$500.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. ENFORCEMENT BY ATTORNEY GENERAL

Sec. 562.201. INJUNCTIVE RELIEF. (a) The attorney general may

bring an action under this section if the attorney general has

reason to believe that:

(1) a person engaged in the business of discount health care

programs in this state is engaging in, has engaged in, or is

about to engage in an act or practice defined as unlawful under:

(A) this chapter; or

(B) Section 17.46, Business & Commerce Code; and

(2) the action is in the public interest.

(b) The attorney general may bring the action in the name of the

state to restrain by temporary or permanent injunction the

person's use of the method, act, or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.202. VENUE FOR INJUNCTIVE ACTION. An action for an

injunction under this subchapter may be commenced in a district

court in:

(1) the county in which the person against whom the action is

brought:

(A) resides;

(B) has the person's principal place of business; or

(C) is engaging in business;

(2) the county in which the transaction or a substantial portion

of the transaction occurred; or

(3) Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.203. ISSUANCE OF INJUNCTION. (a) The court may issue

an appropriate temporary or permanent injunction.

(b) The court shall issue the injunction without bond.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.204. CIVIL PENALTY. In addition to requesting a

temporary or permanent injunction under Section 562.201, the

attorney general may request a civil penalty of not more than

$20,000 for each violation on a finding by the court that the

defendant has engaged in or is engaging in an act or practice

defined as unlawful under this chapter or Section 17.46, Business

& Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.205. COMPENSATION OR RESTORATION. The court may make

an additional order or judgment as necessary to compensate an

identifiable person for actual damages or for restoration of

money or property that may have been acquired by means of an

enjoined act or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.206. CIVIL PENALTY FOR VIOLATION OF INJUNCTION. (a) A

person who violates an injunction issued under this subchapter is

liable for and shall pay to the state a civil penalty of not more

than $10,000 for each violation.

(b) The attorney general may, in the name of the state, petition

the court for recovery of the civil penalty against the person

who violates the injunction.

(c) The court shall consider the maintenance of procedures

reasonably adapted to ensure compliance with the injunction in

determining whether a person has violated an injunction.

(d) The court issuing the injunction retains jurisdiction and

the cause is continued for the purpose of assessing a civil

penalty under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.207. REMEDIES NOT EXCLUSIVE. The remedies provided by

this subchapter:

(1) are not exclusive; and

(2) are in addition to any other remedy or procedure provided by

another law or at common law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

SUBCHAPTER F. ASSURANCE OF VOLUNTARY COMPLIANCE

Sec. 562.251. ACCEPTANCE OF ASSURANCE. (a) In administering

this chapter, the department may accept assurance of voluntary

compliance from a person who is engaging in, has engaged in, or

is about to engage in an act or practice in violation of this

chapter or Section 17.46, Business & Commerce Code.

(b) The assurance must be in writing and be filed with the

department.

(c) The department may condition acceptance of an assurance of

voluntary compliance on the stipulation that the person offering

the assurance restore to a person in interest money that may have

been acquired by the act or practice described in Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.252. EFFECT OF ASSURANCE. (a) An assurance of

voluntary compliance is not an admission of a prior violation of

this chapter or Section 17.46, Business & Commerce Code.

(b) Unless an assurance of voluntary compliance is rescinded by

agreement, a subsequent failure to comply with the assurance is

prima facie evidence of a violation of this chapter or Section

17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.253. REOPENING. A matter closed by the filing of an

assurance of voluntary compliance may be reopened at any time.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER G. CONSTRUCTION OF CHAPTER WITH OTHER LAWS

Sec. 562.301. LIABILITY UNDER OTHER LAW. An order of the

department under this chapter, or an order by a court to enforce

that order, does not relieve or absolve a person affected by

either order from liability under another law of this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.302. POWERS IN ADDITION TO OTHER POWERS AUTHORIZED BY

LAW. The powers vested in the department and the commissioner by

this chapter are in addition to any other powers to enforce a

penalty, fine, or forfeiture authorized by law with respect to a

method of competition or act or practice defined as unfair or

deceptive.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.303. DOUBLE RECOVERY PROHIBITED. A person may not

recover damages and penalties for the same act or practice under

both this chapter and another law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-562-unfair-methods-of-competition-and-unfair-or-deceptive-acts-or-practices-regarding-discou

INSURANCE CODE

TITLE 5. PROTECTION OF CONSUMER INTERESTS

SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES

CHAPTER 562. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING

DISCOUNT HEALTH CARE PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 562.001. PURPOSE. The purpose of this chapter is to

regulate trade practices in the business of discount health care

programs by:

(1) defining or providing for the determination of trade

practices in this state that are unfair methods of competition or

unfair or deceptive acts or practices; and

(2) prohibiting those unfair or deceptive trade practices.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.002. DEFINITIONS. In this chapter:

(1) "Advertisement, solicitation, or marketing material" means

material that is made, published, disseminated, circulated, or

placed before the public:

(A) in a newspaper, magazine, or other publication;

(B) in a notice, circular, pamphlet, letter, or poster;

(C) over a radio or television station;

(D) through the Internet;

(E) in a telephone sales script; or

(F) in any other manner.

(2) "Discount health care program" means a business arrangement

or contract in which an entity, in exchange for fees, dues,

charges, or other consideration, offers its members access to

discounts on health care services provided by health care

providers. The term does not include an insurance policy,

certificate of coverage, or other product otherwise regulated by

the department or a self-funded or self-insured employee benefit

plan.

(3) "Discount health care program operator" means a person who,

in exchange for fees, dues, charges, or other consideration,

operates a discount health care program and contracts with

providers, provider networks, or other discount health care

program operators to offer access to health care services at a

discount and determines the charge to members.

(4) "Health care services" includes physician care, inpatient

care, hospital surgical services, emergency services, ambulance

services, laboratory services, audiology services, dental

services, vision services, mental health services, substance

abuse services, chiropractic services, and podiatry services, and

the provision of medical equipment and supplies, including

prescription drugs.

(5) "Marketer" means a person who sells or distributes, or

offers to sell or distribute, a discount health care program,

including a private label entity that places its name on and

markets or distributes a discount health care program, but does

not operate a discount health care program.

(6) "Member" means a person who pays fees, dues, charges, or

other consideration for the right to participate in a discount

health care program.

(7) "Person" means an individual, corporation, association,

partnership, or other legal entity.

(8) "Program operator" means a discount health plan program

operator.

(9) "Provider" means a person who is licensed or otherwise

authorized to provide health care services in this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.003. VENUE FOR ACTIONS INVOLVING DEPARTMENT OR

COMMISSIONER. An action under this chapter in which the

department or commissioner is a party must be brought in a

district court in Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.004. APPLICABILITY. Except as otherwise provided by

this chapter, a program operator, including the operator of a

freestanding discount health care program or a discount health

care program marketed by an insurer or a health maintenance

organization, shall comply with this chapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.005. LIBERAL CONSTRUCTION. This chapter shall be

liberally construed and applied to promote the underlying

purposes as provided by Section 562.001.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES DEFINED

Sec. 562.051. MISREPRESENTATION REGARDING DISCOUNT HEALTH CARE

PROGRAM. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to:

(1) misrepresent the price range of discounts offered by the

discount health care program;

(2) misrepresent the size or location of the program's network

of providers;

(3) misrepresent the participation of a provider in the

program's network;

(4) suggest that a discount card offered through the program is

a federally approved Medicare prescription discount card;

(5) use the term "insurance," except as:

(A) a disclaimer of any relationship between the discount health

care program and insurance; or

(B) a description of an insurance product connected with a

discount health care program; or

(6) use the term "health plan," "coverage," "copay,"

"copayments," "deductible," "preexisting conditions," "guaranteed

issue," "premium," "PPO," or "preferred provider organization,"

or another similar term, in a manner that could reasonably

mislead an individual into believing that the discount health

care program is health insurance or provides coverage similar to

health insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.052. FALSE INFORMATION AND ADVERTISING. It is an

unfair method of competition or an unfair or deceptive act or

practice in the business of discount health care programs to

make, publish, disseminate, circulate, or place before the public

or directly or indirectly cause to be made, published,

disseminated, circulated, or placed before the public an

advertisement, solicitation, or marketing material containing an

untrue, deceptive, or misleading assertion, representation, or

statement regarding the discount health care program.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.053. FAILURE TO REGISTER OR RENEW REGISTRATION; FALSE

REGISTRATION OR RENEWAL STATEMENT. (a) It is an unfair method

of competition or an unfair or deceptive act or practice in the

business of discount health care programs to:

(1) fail to register or renew registration as required under

Chapter 7001; or

(2) with intent to deceive:

(A) file with the department a false statement in connection

with an application for registration as a program operator under

Chapter 7001; or

(B) file with the department a false statement in connection

with an application for renewal of a registration as a program

operator under Chapter 7001.

(b) The commissioner may impose on a person operating a discount

health care program for the person's failure to register or renew

registration as required under Chapter 7001 any remedy that the

commissioner is authorized to impose under Chapter 101 for the

unauthorized business of insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.054. MISREPRESENTATION OF DISCOUNT HEALTH CARE

PROGRAMS. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to misrepresent a discount health care program by:

(1) making an untrue statement of material fact;

(2) failing to state a material fact necessary to make other

statements made not misleading, considering the circumstances

under which the statements were made;

(3) making a statement in a manner that would mislead a

reasonably prudent person to a false conclusion of a material

fact;

(4) making a material misstatement of law; or

(5) failing to disclose a matter required by law to be

disclosed, including failing to make an applicable disclosure

required by this code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. REGULATION OF PRACTICES

Sec. 562.101. UNFAIR METHODS OF COMPETITION AND UNFAIR OR

DECEPTIVE ACTS OR PRACTICES PROHIBITED. A person may not engage

in this state in a trade practice that is defined in this chapter

as or determined under this chapter to be an unfair method of

competition or an unfair or deceptive act or practice in the

business of discount health care programs.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.102. PROHIBITED CONTENT OF CERTAIN DISCOUNT HEALTH CARE

PROGRAM ADVERTISING, SOLICITATION, OR MARKETING. Notwithstanding

any other provision of this code, it is unlawful for a program

operator or marketer to advertise, solicit, or market a discount

health care program containing the words "approved by the Texas

Department of Insurance" or words with a similar meaning.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.103. PROGRAM OPERATOR DUTIES. (a) A program operator

shall:

(1) provide a toll-free telephone number and Internet website

for members to obtain information about the discount health care

program and confirm or find providers currently participating in

the program; and

(2) remove a provider from the discount health care program not

later than the 30th day after the date the program operator

learns that the provider is no longer participating in the

program or has lost the authority to provide services or

products.

(b) A program operator shall issue at least one membership card

to serve as proof of membership in the discount health care

program that must:

(1) contain a clear and conspicuous statement that the discount

health care program is not insurance; and

(2) if the discount health care program includes discount

prescription drug benefits, include:

(A) the name or logo of the entity administering the

prescription drug benefits;

(B) the international identification number assigned by the

American National Standards Institute for the entity

administering the prescription drug benefits;

(C) the group number applicable to the member; and

(D) a telephone number to be used to contact an appropriate

person to obtain information relating to the prescription drug

benefits provided under the program.

(c) Not later than the 15th day after the date of enrollment, a

program operator shall issue at least one set of disclosure

materials describing the terms and conditions of the discount

health care program to each household in which a person is a

member, including a statement that:

(1) the discount health care program is not insurance, with the

word "not" capitalized;

(2) the member is required to pay the entire amount of the

discounted rate;

(3) the discount health care program does not guarantee the

quality of the services or products offered by individual

providers; and

(4) if the member remains dissatisfied after completing the

discount health care program's complaint system, the member may

contact the member's state insurance department.

(d) A program operator shall ensure that an application form or

other membership agreement:

(1) clearly and conspicuously discloses the duration of

membership and the amount of payments the member is obligated to

make for the membership; and

(2) contains a clear and conspicuous statement that the discount

health care program is not insurance.

(e) A program operator shall allow any member who cancels a

membership in the discount health care program not later than the

30th day after the date the person becomes a member to receive a

refund, not later than the 30th day after the date the program

operator receives a valid cancellation notice and returned

membership card, of all periodic membership charges paid by that

member to the program operator and the amount of any one-time

enrollment fee that exceeds $50.

(f) A program operator shall:

(1) maintain a surety bond, payable to the department for the

use and benefit of members in a manner prescribed by the

department, in the principal amount of $50,000, except that a

program operator that is an insurer that holds a certificate of

authority under Title 6 is not required to maintain the surety

bond;

(2) maintain an agent for service of process in this state; and

(3) establish and operate a fair and efficient procedure for

resolution of complaints regarding the availability of contracted

discounts or services or other matters relating to the

contractual obligations of the discount health care program to

its members.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.104. MARKETING OF PROGRAM. (a) A program operator may

market directly or contract with marketers for the distribution

of the program operator's discount health care programs.

(b) A program operator shall enter into a written contract with

a marketer before the marketer begins marketing, promoting,

selling, or distributing the program operator's discount health

care program. The contract must prohibit the marketer from using

an advertisement, solicitation, or other marketing material or a

discount card that has not been approved in advance and in

writing by the program operator.

(c) A program operator must approve in writing before their use

all advertisements, solicitations, or other marketing materials

and all discount cards used by marketers to market, promote,

sell, or distribute the discount health care program.

(d) Each advertisement, solicitation, or marketing material of a

discount health care program must clearly and conspicuously state

that the discount health care program is not insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.105. CONTRACT REQUIREMENTS. (a) A program operator

shall contract, directly or indirectly, with a provider offering

discounted health care services or products under the discount

health care program. The written contract must contain all of

the following provisions:

(1) a description of the discounts to be provided to a member;

(2) a provision prohibiting the provider from charging a member

more than the discounted rate agreed to in the written agreement

with the provider; and

(3) a provision requiring the provider to promptly notify the

program operator if the provider no longer participates in the

program or loses the authority to provide services or products.

(b) The program operator may not charge or receive from a

provider any fee or other compensation for entering into the

agreement.

(c) If the program operator contracts with a network of

providers, the program operator shall obtain written assurance

from the network that:

(1) the network has a written agreement with each network

provider that includes a discounted rate that is applicable to a

program operator's discount health care program and contains all

of the terms described in Subsection (a); and

(2) the network is authorized to obligate the network providers

to provide services to members of the discount health care

program.

(d) The program operator shall require the network to:

(1) maintain and provide the program operator on a monthly basis

an up-to-date list of providers in the network; and

(2) promptly remove a provider from its network if the provider

no longer participates or loses the authority to provide services

or products.

(e) The program operator shall maintain a copy of each written

agreement the program operator has with a provider or a network

for at least two years following termination of the agreement.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 561.106. SUBMISSION OF MATERIALS. If the commissioner

reasonably believes that a program operator or a marketer may not

be operating in compliance with this chapter, the commissioner by

order may require the program operator or the marketer to submit

to the commissioner any advertisement, solicitation, or marketing

material, disclosure material, discount card, agreement, or other

document requested by the commissioner.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. DETERMINATION OF UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES; ENFORCEMENT; SANCTIONS AND

PENALTIES

Sec. 562.151. EXAMINATION AND INVESTIGATION. The department may

examine and investigate the affairs of a person engaged in the

business of discount health care programs in this state to

determine whether the person:

(1) has or is engaged in an unfair method of competition or

unfair or deceptive act or practice prohibited by this chapter;

or

(2) has violated Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.152. STATEMENT OF CHARGES; NOTICE OF HEARING. (a)

When the department has reason to believe that a person engaged

in the business of discount health care programs in this state

has engaged or is engaging in this state in an unfair method of

competition or unfair or deceptive act or practice defined by

Subchapter B or has violated Subchapter B or C and that a

proceeding by the department regarding the charges is in the

interest of the public, the department shall issue and serve on

the person:

(1) a statement of the charges; and

(2) a notice of the hearing on the charges, including the time

and place for the hearing.

(b) The department may not hold the hearing before the sixth day

after the date the notice required by Subsection (a)(2) is

served.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.153. HEARING. A person against whom charges are made

under Section 562.152 is entitled at the hearing on the charges

to have an opportunity to be heard and show cause why the

department should not issue an order requiring the person to

cease and desist from:

(1) performing the unfair method of competition or unfair or

deceptive act or practice described in the charges; or

(2) violating Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.154. HEARING PROCEDURES. (a) Nothing in this chapter

requires the observance of formal rules of pleading or evidence

at a hearing under this subchapter.

(b) At a hearing under this subchapter, the department, on a

showing of good cause, shall permit any person to intervene,

appear, and be heard by counsel or in person.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.155. RECORD OF HEARING. (a) At a hearing under this

subchapter, the department may, and at the request of a party to

the hearing shall, make a record of the proceedings and the

evidence presented at the hearing.

(b) If the department does not make a record and a person seeks

judicial review of the decision made at the hearing, the

department shall prepare a statement of the evidence and

proceeding for use on review.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.156. COMPLIANCE WITH SUBPOENA. (a) If a person

refuses to comply with a subpoena issued in connection with a

hearing under this subchapter or refuses to testify with respect

to a matter about which the person may be lawfully interrogated,

on application of the department, a district court in Travis

County or in the county in which the person resides may order the

person to comply with the subpoena or testify.

(b) A court may punish as contempt a person's failure to obey an

order under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.157. DETERMINATION OF VIOLATION. After a hearing under

this subchapter to determine whether a person has engaged in an

unfair method of competition or unfair or deceptive act or

practice prohibited by this chapter, the department shall

determine whether:

(1) the method of competition or the act or practice considered

in the hearing is defined as:

(A) an unfair method of competition or deceptive act or practice

under Subchapter B; or

(B) a false, misleading, or deceptive act or practice under

Section 17.46, Business & Commerce Code; and

(2) the person against whom the charges were made engaged in the

method of competition or act or practice in violation of:

(A) this chapter; or

(B) Subchapter E, Chapter 17, Business & Commerce Code, as

specified in Section 17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.158. CEASE AND DESIST ORDER. On determining that a

person committed a violation described by Section 562.157 or

committed a violation of Subchapter B or C, the department shall:

(1) make written findings; and

(2) issue and serve on the person an order requiring the person

to cease and desist from engaging in the method of competition or

act or practice determined to be a violation or the violation of

Subchapter B or C, as applicable.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.159. MODIFICATION OR SETTING ASIDE OF ORDER. On the

notice and in the manner the department determines proper, the

department may modify or set aside wholly or partly a cease and

desist order issued under Section 562.158 at any time before a

petition appealing the order is filed in accordance with

Subchapter D, Chapter 36.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.160. ADMINISTRATIVE PENALTY FOR VIOLATION OF CEASE AND

DESIST ORDER. (a) A person who violates a cease and desist

order issued under Section 562.158 is subject to an

administrative penalty under Chapter 84.

(b) In determining whether a person has violated a cease and

desist order, the department shall consider the maintenance of

procedures reasonably adapted to ensure compliance with the

order.

(c) An administrative penalty imposed under this section may not

exceed:

(1) $1,000 for each violation; or

(2) $5,000 for all violations.

(d) An order of the department imposing an administrative

penalty under this section applies only to a violation of the

cease and desist order committed before the date the order

imposing the penalty is issued.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.161. CIVIL PENALTY FOR VIOLATION OF CEASE AND DESIST

ORDER. (a) A person who is found by a court to have violated a

cease and desist order issued under Section 562.158 is liable to

the state for a penalty. The state may recover the penalty in a

civil action.

(b) The penalty may not exceed $50 unless the court finds the

violation to be wilful, in which case the penalty may not exceed

$500.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. ENFORCEMENT BY ATTORNEY GENERAL

Sec. 562.201. INJUNCTIVE RELIEF. (a) The attorney general may

bring an action under this section if the attorney general has

reason to believe that:

(1) a person engaged in the business of discount health care

programs in this state is engaging in, has engaged in, or is

about to engage in an act or practice defined as unlawful under:

(A) this chapter; or

(B) Section 17.46, Business & Commerce Code; and

(2) the action is in the public interest.

(b) The attorney general may bring the action in the name of the

state to restrain by temporary or permanent injunction the

person's use of the method, act, or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.202. VENUE FOR INJUNCTIVE ACTION. An action for an

injunction under this subchapter may be commenced in a district

court in:

(1) the county in which the person against whom the action is

brought:

(A) resides;

(B) has the person's principal place of business; or

(C) is engaging in business;

(2) the county in which the transaction or a substantial portion

of the transaction occurred; or

(3) Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.203. ISSUANCE OF INJUNCTION. (a) The court may issue

an appropriate temporary or permanent injunction.

(b) The court shall issue the injunction without bond.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.204. CIVIL PENALTY. In addition to requesting a

temporary or permanent injunction under Section 562.201, the

attorney general may request a civil penalty of not more than

$20,000 for each violation on a finding by the court that the

defendant has engaged in or is engaging in an act or practice

defined as unlawful under this chapter or Section 17.46, Business

& Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.205. COMPENSATION OR RESTORATION. The court may make

an additional order or judgment as necessary to compensate an

identifiable person for actual damages or for restoration of

money or property that may have been acquired by means of an

enjoined act or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.206. CIVIL PENALTY FOR VIOLATION OF INJUNCTION. (a) A

person who violates an injunction issued under this subchapter is

liable for and shall pay to the state a civil penalty of not more

than $10,000 for each violation.

(b) The attorney general may, in the name of the state, petition

the court for recovery of the civil penalty against the person

who violates the injunction.

(c) The court shall consider the maintenance of procedures

reasonably adapted to ensure compliance with the injunction in

determining whether a person has violated an injunction.

(d) The court issuing the injunction retains jurisdiction and

the cause is continued for the purpose of assessing a civil

penalty under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.207. REMEDIES NOT EXCLUSIVE. The remedies provided by

this subchapter:

(1) are not exclusive; and

(2) are in addition to any other remedy or procedure provided by

another law or at common law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

SUBCHAPTER F. ASSURANCE OF VOLUNTARY COMPLIANCE

Sec. 562.251. ACCEPTANCE OF ASSURANCE. (a) In administering

this chapter, the department may accept assurance of voluntary

compliance from a person who is engaging in, has engaged in, or

is about to engage in an act or practice in violation of this

chapter or Section 17.46, Business & Commerce Code.

(b) The assurance must be in writing and be filed with the

department.

(c) The department may condition acceptance of an assurance of

voluntary compliance on the stipulation that the person offering

the assurance restore to a person in interest money that may have

been acquired by the act or practice described in Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.252. EFFECT OF ASSURANCE. (a) An assurance of

voluntary compliance is not an admission of a prior violation of

this chapter or Section 17.46, Business & Commerce Code.

(b) Unless an assurance of voluntary compliance is rescinded by

agreement, a subsequent failure to comply with the assurance is

prima facie evidence of a violation of this chapter or Section

17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.253. REOPENING. A matter closed by the filing of an

assurance of voluntary compliance may be reopened at any time.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER G. CONSTRUCTION OF CHAPTER WITH OTHER LAWS

Sec. 562.301. LIABILITY UNDER OTHER LAW. An order of the

department under this chapter, or an order by a court to enforce

that order, does not relieve or absolve a person affected by

either order from liability under another law of this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.302. POWERS IN ADDITION TO OTHER POWERS AUTHORIZED BY

LAW. The powers vested in the department and the commissioner by

this chapter are in addition to any other powers to enforce a

penalty, fine, or forfeiture authorized by law with respect to a

method of competition or act or practice defined as unfair or

deceptive.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.303. DOUBLE RECOVERY PROHIBITED. A person may not

recover damages and penalties for the same act or practice under

both this chapter and another law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-562-unfair-methods-of-competition-and-unfair-or-deceptive-acts-or-practices-regarding-discou

INSURANCE CODE

TITLE 5. PROTECTION OF CONSUMER INTERESTS

SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES

CHAPTER 562. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING

DISCOUNT HEALTH CARE PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 562.001. PURPOSE. The purpose of this chapter is to

regulate trade practices in the business of discount health care

programs by:

(1) defining or providing for the determination of trade

practices in this state that are unfair methods of competition or

unfair or deceptive acts or practices; and

(2) prohibiting those unfair or deceptive trade practices.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.002. DEFINITIONS. In this chapter:

(1) "Advertisement, solicitation, or marketing material" means

material that is made, published, disseminated, circulated, or

placed before the public:

(A) in a newspaper, magazine, or other publication;

(B) in a notice, circular, pamphlet, letter, or poster;

(C) over a radio or television station;

(D) through the Internet;

(E) in a telephone sales script; or

(F) in any other manner.

(2) "Discount health care program" means a business arrangement

or contract in which an entity, in exchange for fees, dues,

charges, or other consideration, offers its members access to

discounts on health care services provided by health care

providers. The term does not include an insurance policy,

certificate of coverage, or other product otherwise regulated by

the department or a self-funded or self-insured employee benefit

plan.

(3) "Discount health care program operator" means a person who,

in exchange for fees, dues, charges, or other consideration,

operates a discount health care program and contracts with

providers, provider networks, or other discount health care

program operators to offer access to health care services at a

discount and determines the charge to members.

(4) "Health care services" includes physician care, inpatient

care, hospital surgical services, emergency services, ambulance

services, laboratory services, audiology services, dental

services, vision services, mental health services, substance

abuse services, chiropractic services, and podiatry services, and

the provision of medical equipment and supplies, including

prescription drugs.

(5) "Marketer" means a person who sells or distributes, or

offers to sell or distribute, a discount health care program,

including a private label entity that places its name on and

markets or distributes a discount health care program, but does

not operate a discount health care program.

(6) "Member" means a person who pays fees, dues, charges, or

other consideration for the right to participate in a discount

health care program.

(7) "Person" means an individual, corporation, association,

partnership, or other legal entity.

(8) "Program operator" means a discount health plan program

operator.

(9) "Provider" means a person who is licensed or otherwise

authorized to provide health care services in this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.003. VENUE FOR ACTIONS INVOLVING DEPARTMENT OR

COMMISSIONER. An action under this chapter in which the

department or commissioner is a party must be brought in a

district court in Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.004. APPLICABILITY. Except as otherwise provided by

this chapter, a program operator, including the operator of a

freestanding discount health care program or a discount health

care program marketed by an insurer or a health maintenance

organization, shall comply with this chapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.005. LIBERAL CONSTRUCTION. This chapter shall be

liberally construed and applied to promote the underlying

purposes as provided by Section 562.001.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES DEFINED

Sec. 562.051. MISREPRESENTATION REGARDING DISCOUNT HEALTH CARE

PROGRAM. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to:

(1) misrepresent the price range of discounts offered by the

discount health care program;

(2) misrepresent the size or location of the program's network

of providers;

(3) misrepresent the participation of a provider in the

program's network;

(4) suggest that a discount card offered through the program is

a federally approved Medicare prescription discount card;

(5) use the term "insurance," except as:

(A) a disclaimer of any relationship between the discount health

care program and insurance; or

(B) a description of an insurance product connected with a

discount health care program; or

(6) use the term "health plan," "coverage," "copay,"

"copayments," "deductible," "preexisting conditions," "guaranteed

issue," "premium," "PPO," or "preferred provider organization,"

or another similar term, in a manner that could reasonably

mislead an individual into believing that the discount health

care program is health insurance or provides coverage similar to

health insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.052. FALSE INFORMATION AND ADVERTISING. It is an

unfair method of competition or an unfair or deceptive act or

practice in the business of discount health care programs to

make, publish, disseminate, circulate, or place before the public

or directly or indirectly cause to be made, published,

disseminated, circulated, or placed before the public an

advertisement, solicitation, or marketing material containing an

untrue, deceptive, or misleading assertion, representation, or

statement regarding the discount health care program.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.053. FAILURE TO REGISTER OR RENEW REGISTRATION; FALSE

REGISTRATION OR RENEWAL STATEMENT. (a) It is an unfair method

of competition or an unfair or deceptive act or practice in the

business of discount health care programs to:

(1) fail to register or renew registration as required under

Chapter 7001; or

(2) with intent to deceive:

(A) file with the department a false statement in connection

with an application for registration as a program operator under

Chapter 7001; or

(B) file with the department a false statement in connection

with an application for renewal of a registration as a program

operator under Chapter 7001.

(b) The commissioner may impose on a person operating a discount

health care program for the person's failure to register or renew

registration as required under Chapter 7001 any remedy that the

commissioner is authorized to impose under Chapter 101 for the

unauthorized business of insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.054. MISREPRESENTATION OF DISCOUNT HEALTH CARE

PROGRAMS. It is an unfair method of competition or an unfair or

deceptive act or practice in the business of discount health care

programs to misrepresent a discount health care program by:

(1) making an untrue statement of material fact;

(2) failing to state a material fact necessary to make other

statements made not misleading, considering the circumstances

under which the statements were made;

(3) making a statement in a manner that would mislead a

reasonably prudent person to a false conclusion of a material

fact;

(4) making a material misstatement of law; or

(5) failing to disclose a matter required by law to be

disclosed, including failing to make an applicable disclosure

required by this code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. REGULATION OF PRACTICES

Sec. 562.101. UNFAIR METHODS OF COMPETITION AND UNFAIR OR

DECEPTIVE ACTS OR PRACTICES PROHIBITED. A person may not engage

in this state in a trade practice that is defined in this chapter

as or determined under this chapter to be an unfair method of

competition or an unfair or deceptive act or practice in the

business of discount health care programs.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.102. PROHIBITED CONTENT OF CERTAIN DISCOUNT HEALTH CARE

PROGRAM ADVERTISING, SOLICITATION, OR MARKETING. Notwithstanding

any other provision of this code, it is unlawful for a program

operator or marketer to advertise, solicit, or market a discount

health care program containing the words "approved by the Texas

Department of Insurance" or words with a similar meaning.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.103. PROGRAM OPERATOR DUTIES. (a) A program operator

shall:

(1) provide a toll-free telephone number and Internet website

for members to obtain information about the discount health care

program and confirm or find providers currently participating in

the program; and

(2) remove a provider from the discount health care program not

later than the 30th day after the date the program operator

learns that the provider is no longer participating in the

program or has lost the authority to provide services or

products.

(b) A program operator shall issue at least one membership card

to serve as proof of membership in the discount health care

program that must:

(1) contain a clear and conspicuous statement that the discount

health care program is not insurance; and

(2) if the discount health care program includes discount

prescription drug benefits, include:

(A) the name or logo of the entity administering the

prescription drug benefits;

(B) the international identification number assigned by the

American National Standards Institute for the entity

administering the prescription drug benefits;

(C) the group number applicable to the member; and

(D) a telephone number to be used to contact an appropriate

person to obtain information relating to the prescription drug

benefits provided under the program.

(c) Not later than the 15th day after the date of enrollment, a

program operator shall issue at least one set of disclosure

materials describing the terms and conditions of the discount

health care program to each household in which a person is a

member, including a statement that:

(1) the discount health care program is not insurance, with the

word "not" capitalized;

(2) the member is required to pay the entire amount of the

discounted rate;

(3) the discount health care program does not guarantee the

quality of the services or products offered by individual

providers; and

(4) if the member remains dissatisfied after completing the

discount health care program's complaint system, the member may

contact the member's state insurance department.

(d) A program operator shall ensure that an application form or

other membership agreement:

(1) clearly and conspicuously discloses the duration of

membership and the amount of payments the member is obligated to

make for the membership; and

(2) contains a clear and conspicuous statement that the discount

health care program is not insurance.

(e) A program operator shall allow any member who cancels a

membership in the discount health care program not later than the

30th day after the date the person becomes a member to receive a

refund, not later than the 30th day after the date the program

operator receives a valid cancellation notice and returned

membership card, of all periodic membership charges paid by that

member to the program operator and the amount of any one-time

enrollment fee that exceeds $50.

(f) A program operator shall:

(1) maintain a surety bond, payable to the department for the

use and benefit of members in a manner prescribed by the

department, in the principal amount of $50,000, except that a

program operator that is an insurer that holds a certificate of

authority under Title 6 is not required to maintain the surety

bond;

(2) maintain an agent for service of process in this state; and

(3) establish and operate a fair and efficient procedure for

resolution of complaints regarding the availability of contracted

discounts or services or other matters relating to the

contractual obligations of the discount health care program to

its members.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.104. MARKETING OF PROGRAM. (a) A program operator may

market directly or contract with marketers for the distribution

of the program operator's discount health care programs.

(b) A program operator shall enter into a written contract with

a marketer before the marketer begins marketing, promoting,

selling, or distributing the program operator's discount health

care program. The contract must prohibit the marketer from using

an advertisement, solicitation, or other marketing material or a

discount card that has not been approved in advance and in

writing by the program operator.

(c) A program operator must approve in writing before their use

all advertisements, solicitations, or other marketing materials

and all discount cards used by marketers to market, promote,

sell, or distribute the discount health care program.

(d) Each advertisement, solicitation, or marketing material of a

discount health care program must clearly and conspicuously state

that the discount health care program is not insurance.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.105. CONTRACT REQUIREMENTS. (a) A program operator

shall contract, directly or indirectly, with a provider offering

discounted health care services or products under the discount

health care program. The written contract must contain all of

the following provisions:

(1) a description of the discounts to be provided to a member;

(2) a provision prohibiting the provider from charging a member

more than the discounted rate agreed to in the written agreement

with the provider; and

(3) a provision requiring the provider to promptly notify the

program operator if the provider no longer participates in the

program or loses the authority to provide services or products.

(b) The program operator may not charge or receive from a

provider any fee or other compensation for entering into the

agreement.

(c) If the program operator contracts with a network of

providers, the program operator shall obtain written assurance

from the network that:

(1) the network has a written agreement with each network

provider that includes a discounted rate that is applicable to a

program operator's discount health care program and contains all

of the terms described in Subsection (a); and

(2) the network is authorized to obligate the network providers

to provide services to members of the discount health care

program.

(d) The program operator shall require the network to:

(1) maintain and provide the program operator on a monthly basis

an up-to-date list of providers in the network; and

(2) promptly remove a provider from its network if the provider

no longer participates or loses the authority to provide services

or products.

(e) The program operator shall maintain a copy of each written

agreement the program operator has with a provider or a network

for at least two years following termination of the agreement.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 561.106. SUBMISSION OF MATERIALS. If the commissioner

reasonably believes that a program operator or a marketer may not

be operating in compliance with this chapter, the commissioner by

order may require the program operator or the marketer to submit

to the commissioner any advertisement, solicitation, or marketing

material, disclosure material, discount card, agreement, or other

document requested by the commissioner.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. DETERMINATION OF UNFAIR METHODS OF COMPETITION AND

UNFAIR OR DECEPTIVE ACTS OR PRACTICES; ENFORCEMENT; SANCTIONS AND

PENALTIES

Sec. 562.151. EXAMINATION AND INVESTIGATION. The department may

examine and investigate the affairs of a person engaged in the

business of discount health care programs in this state to

determine whether the person:

(1) has or is engaged in an unfair method of competition or

unfair or deceptive act or practice prohibited by this chapter;

or

(2) has violated Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.152. STATEMENT OF CHARGES; NOTICE OF HEARING. (a)

When the department has reason to believe that a person engaged

in the business of discount health care programs in this state

has engaged or is engaging in this state in an unfair method of

competition or unfair or deceptive act or practice defined by

Subchapter B or has violated Subchapter B or C and that a

proceeding by the department regarding the charges is in the

interest of the public, the department shall issue and serve on

the person:

(1) a statement of the charges; and

(2) a notice of the hearing on the charges, including the time

and place for the hearing.

(b) The department may not hold the hearing before the sixth day

after the date the notice required by Subsection (a)(2) is

served.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.153. HEARING. A person against whom charges are made

under Section 562.152 is entitled at the hearing on the charges

to have an opportunity to be heard and show cause why the

department should not issue an order requiring the person to

cease and desist from:

(1) performing the unfair method of competition or unfair or

deceptive act or practice described in the charges; or

(2) violating Subchapter B or C.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.154. HEARING PROCEDURES. (a) Nothing in this chapter

requires the observance of formal rules of pleading or evidence

at a hearing under this subchapter.

(b) At a hearing under this subchapter, the department, on a

showing of good cause, shall permit any person to intervene,

appear, and be heard by counsel or in person.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.155. RECORD OF HEARING. (a) At a hearing under this

subchapter, the department may, and at the request of a party to

the hearing shall, make a record of the proceedings and the

evidence presented at the hearing.

(b) If the department does not make a record and a person seeks

judicial review of the decision made at the hearing, the

department shall prepare a statement of the evidence and

proceeding for use on review.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.156. COMPLIANCE WITH SUBPOENA. (a) If a person

refuses to comply with a subpoena issued in connection with a

hearing under this subchapter or refuses to testify with respect

to a matter about which the person may be lawfully interrogated,

on application of the department, a district court in Travis

County or in the county in which the person resides may order the

person to comply with the subpoena or testify.

(b) A court may punish as contempt a person's failure to obey an

order under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.157. DETERMINATION OF VIOLATION. After a hearing under

this subchapter to determine whether a person has engaged in an

unfair method of competition or unfair or deceptive act or

practice prohibited by this chapter, the department shall

determine whether:

(1) the method of competition or the act or practice considered

in the hearing is defined as:

(A) an unfair method of competition or deceptive act or practice

under Subchapter B; or

(B) a false, misleading, or deceptive act or practice under

Section 17.46, Business & Commerce Code; and

(2) the person against whom the charges were made engaged in the

method of competition or act or practice in violation of:

(A) this chapter; or

(B) Subchapter E, Chapter 17, Business & Commerce Code, as

specified in Section 17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.158. CEASE AND DESIST ORDER. On determining that a

person committed a violation described by Section 562.157 or

committed a violation of Subchapter B or C, the department shall:

(1) make written findings; and

(2) issue and serve on the person an order requiring the person

to cease and desist from engaging in the method of competition or

act or practice determined to be a violation or the violation of

Subchapter B or C, as applicable.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.159. MODIFICATION OR SETTING ASIDE OF ORDER. On the

notice and in the manner the department determines proper, the

department may modify or set aside wholly or partly a cease and

desist order issued under Section 562.158 at any time before a

petition appealing the order is filed in accordance with

Subchapter D, Chapter 36.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.160. ADMINISTRATIVE PENALTY FOR VIOLATION OF CEASE AND

DESIST ORDER. (a) A person who violates a cease and desist

order issued under Section 562.158 is subject to an

administrative penalty under Chapter 84.

(b) In determining whether a person has violated a cease and

desist order, the department shall consider the maintenance of

procedures reasonably adapted to ensure compliance with the

order.

(c) An administrative penalty imposed under this section may not

exceed:

(1) $1,000 for each violation; or

(2) $5,000 for all violations.

(d) An order of the department imposing an administrative

penalty under this section applies only to a violation of the

cease and desist order committed before the date the order

imposing the penalty is issued.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.161. CIVIL PENALTY FOR VIOLATION OF CEASE AND DESIST

ORDER. (a) A person who is found by a court to have violated a

cease and desist order issued under Section 562.158 is liable to

the state for a penalty. The state may recover the penalty in a

civil action.

(b) The penalty may not exceed $50 unless the court finds the

violation to be wilful, in which case the penalty may not exceed

$500.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. ENFORCEMENT BY ATTORNEY GENERAL

Sec. 562.201. INJUNCTIVE RELIEF. (a) The attorney general may

bring an action under this section if the attorney general has

reason to believe that:

(1) a person engaged in the business of discount health care

programs in this state is engaging in, has engaged in, or is

about to engage in an act or practice defined as unlawful under:

(A) this chapter; or

(B) Section 17.46, Business & Commerce Code; and

(2) the action is in the public interest.

(b) The attorney general may bring the action in the name of the

state to restrain by temporary or permanent injunction the

person's use of the method, act, or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.202. VENUE FOR INJUNCTIVE ACTION. An action for an

injunction under this subchapter may be commenced in a district

court in:

(1) the county in which the person against whom the action is

brought:

(A) resides;

(B) has the person's principal place of business; or

(C) is engaging in business;

(2) the county in which the transaction or a substantial portion

of the transaction occurred; or

(3) Travis County.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.203. ISSUANCE OF INJUNCTION. (a) The court may issue

an appropriate temporary or permanent injunction.

(b) The court shall issue the injunction without bond.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.204. CIVIL PENALTY. In addition to requesting a

temporary or permanent injunction under Section 562.201, the

attorney general may request a civil penalty of not more than

$20,000 for each violation on a finding by the court that the

defendant has engaged in or is engaging in an act or practice

defined as unlawful under this chapter or Section 17.46, Business

& Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.205. COMPENSATION OR RESTORATION. The court may make

an additional order or judgment as necessary to compensate an

identifiable person for actual damages or for restoration of

money or property that may have been acquired by means of an

enjoined act or practice.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.206. CIVIL PENALTY FOR VIOLATION OF INJUNCTION. (a) A

person who violates an injunction issued under this subchapter is

liable for and shall pay to the state a civil penalty of not more

than $10,000 for each violation.

(b) The attorney general may, in the name of the state, petition

the court for recovery of the civil penalty against the person

who violates the injunction.

(c) The court shall consider the maintenance of procedures

reasonably adapted to ensure compliance with the injunction in

determining whether a person has violated an injunction.

(d) The court issuing the injunction retains jurisdiction and

the cause is continued for the purpose of assessing a civil

penalty under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

Sec. 562.207. REMEDIES NOT EXCLUSIVE. The remedies provided by

this subchapter:

(1) are not exclusive; and

(2) are in addition to any other remedy or procedure provided by

another law or at common law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. April 1, 2010.

SUBCHAPTER F. ASSURANCE OF VOLUNTARY COMPLIANCE

Sec. 562.251. ACCEPTANCE OF ASSURANCE. (a) In administering

this chapter, the department may accept assurance of voluntary

compliance from a person who is engaging in, has engaged in, or

is about to engage in an act or practice in violation of this

chapter or Section 17.46, Business & Commerce Code.

(b) The assurance must be in writing and be filed with the

department.

(c) The department may condition acceptance of an assurance of

voluntary compliance on the stipulation that the person offering

the assurance restore to a person in interest money that may have

been acquired by the act or practice described in Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.252. EFFECT OF ASSURANCE. (a) An assurance of

voluntary compliance is not an admission of a prior violation of

this chapter or Section 17.46, Business & Commerce Code.

(b) Unless an assurance of voluntary compliance is rescinded by

agreement, a subsequent failure to comply with the assurance is

prima facie evidence of a violation of this chapter or Section

17.46, Business & Commerce Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.253. REOPENING. A matter closed by the filing of an

assurance of voluntary compliance may be reopened at any time.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

SUBCHAPTER G. CONSTRUCTION OF CHAPTER WITH OTHER LAWS

Sec. 562.301. LIABILITY UNDER OTHER LAW. An order of the

department under this chapter, or an order by a court to enforce

that order, does not relieve or absolve a person affected by

either order from liability under another law of this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.302. POWERS IN ADDITION TO OTHER POWERS AUTHORIZED BY

LAW. The powers vested in the department and the commissioner by

this chapter are in addition to any other powers to enforce a

penalty, fine, or forfeiture authorized by law with respect to a

method of competition or act or practice defined as unfair or

deceptive.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.

Sec. 562.303. DOUBLE RECOVERY PROHIBITED. A person may not

recover damages and penalties for the same act or practice under

both this chapter and another law.

Added by Acts 2009, 81st Leg., R.S., Ch.

1331, Sec. 1, eff. September 1, 2009.