Texas Insurance Code

§ 751.208 — ASSESSMENT OF COSTS OF EXAMINATION

IN § 751.208Title 5. PROTECTION OF CONSUMER INTERESTS · Part G. REGULATION OF INSURER MARKET CONDUCT · Ch. 751. MARKET CONDUCT SURVEILLANCE · Art. E. EXAMINATIONS

Statute text

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(a)Subject to Subsection (d), if the reasonable and necessary cost of a market conduct examination is to be assessed against the affected insurer, fees for that cost must be consistent with those otherwise authorized by law. The fees must be itemized and bills for the fees must be provided to the insurer on a monthly basis for review prior to submission for payment.

(b)The commissioner shall actively manage and oversee examination costs, including costs associated with the use of department examiners and with retaining qualified contract examiners necessary to perform an on-site examination. To the extent the commissioner retains outside assistance, the commissioner shall adopt by rule written protocols that:

(1)clearly identify the types of functions to be subject to outsourcing;

(2)provide specific time lines for completion of the outsourced review;

(3)require disclosure of recommendations made by contract examiners;

(4)establish and use a dispute resolution or arbitration mechanism to resolve conflicts with insurers regarding examination fees; and

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Legislative history

Added by Acts 2005, 79th Leg., Ch. 291 (S.B. 14), Sec. 3, eff. September 1, 2005.