Texas Insurance Codes 5.65C

(1) makes a false statement;

(2) misrepresents or conceals a material fact;

(3) makes a false entry in, fabricates, alters, conceals, or destroys a document; or

(4) conspires to commit an act listed in Subdivision (1), (2), or (3) of this subsection.

(b) An administrative violation under Subsection (a) of this article is punishable by an administrative penalty not to exceed $5,000 assessed in accordance with the procedures established for an administrative violation under Article 10, Texas Workers' Compensation Act (Article 8308-10.01 et seq., Vernon's Texas Civil Statutes).

(c) The State Board of Insurance shall sanction an agent who commits an administrative violation under this article in accordance with Section 7, Article 1.10 of this code.

(d) If a policyholder commits an administrative violation under this article and obtains workers' compensation insurance coverage at a premium less than the premium that would have been charged had the policyholder not committed the administrative violation, the policyholder is liable to the insurer for the difference between the premium due and the premium actually charged, plus reasonable interest and reasonable attorney fees. For the purposes of this subsection, "insurer" includes the Texas Mutual Insurance Company.

(e) An insurer commits an administrative violation if the insurer directly or indirectly requires a person to apply for or purchase a policy of insurance other than workers' compensation insurance as a condition attached to the issuance of a workers' compensation insurance policy by the insurer. An insurer that violates this subsection is subject to the administrative penalties under Article 1.10 of this code.

(f) A person commits an administrative violation if the person knowingly and intentionally obtains or maintains workers' compensation insurance coverage from an insurer that is not authorized to do business in this state or obtains or maintains alternative coverage from an insurer in violation of this code. An administrative violation under this subsection is punishable by an administrative penalty not to exceed $5,000 assessed in accordance with the procedures established under Article 10, Texas Workers' Compensation Act (Article 8308-10.01 et seq., Vernon's Texas Civil Statutes). Each day of noncompliance is a separate violation.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 12, Sec. 18.06, eff. Jan. 1, 1992. Subsec. (d) amended by Acts 2001, 77th Leg., ch. 1195, Sec. 2.06, eff. Sept. 1, 2001.