Texas Insurance Code

§ 887.104 — REFUSAL OR REMOVAL FOR UNWORTHINESS OF PUBLIC TRUST

IN § 887.104Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES · Art. C. AUTHORITY TO ENGAGE IN BUSINESS

Statute text

View on source

(a)The department may not issue a certificate of authority to an association if the department determines that an officer, employee, or member of the board of directors of the association is unworthy of the trust or confidence of the public.

(b)On issuance of a certificate of authority to an association, the commissioner shall order the removal of an officer, employee, or director of the association if the officer, employee, or director is found unworthy of the trust or confidence of the public.

(c)If the association does not remove an officer, employee, or director as required by an order issued under Subsection (b), the commissioner shall:

(1)revoke the certificate of authority; and

(2)treat the association as insolvent.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.