| Art. 21.21-6A. Criminal Penalty |
(a) In this article, " person" means a legal entity engaged in the business of life insurance described by Subdivisions (a), (b), (e), (f), and (j), Section 2, Article 21.21-6 of this code, as added by Chapter 415, Acts of the 74th Legislature, Regular Session, 1995, or an officer or director of one of those entities.
(b) A person commits an offense if the person recklessly: |
(1) offers insurance coverage at a premium based on a rate that is, because of race, color, religion, ethnicity, or national origin, different from another premium rate offered or used by the person for the same coverage, other than for classifications applicable alike to persons of every race, color, religion, ethnicity, or national origin; or
(2) collects an insurance premium based on a rate that is, because of race, color, religion, ethnicity, or national origin, different from another premium rate offered or used by the person for the same coverage, other than for classifications applicable alike to persons of every race, color, religion, ethnicity, or national origin. |
| (c) An offense under this article is a state jail felony. |
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| Art. 21.47. False Statement in Written Instrument; Penalty |
(a) A person commits an offense if the person knowingly or intentionally makes, files or uses any instrument in writing required to be made to or filed with the State Board of Insurance or the Insurance Commissioner, either by the Insurance Code or by rule or regulation of the State Board of Insurance, when the instrument in writing contains any false, fictitious, or fraudulent statement or entry with regard to any material fact.
(b) For purposes of this article, "Texas Department of Insurance" includes but is not limited to the executive director of the Texas Department of Insurance, the State Board of Insurance, or any association, corporation, or person created by the Insurance Code.
(c) An offense under this article is a felony of the third degree. |
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| Art. 21.15-1. Penalty for Acting As, or Assisting, Aiding or Conspiring With Anyone, Whose License to Act As Insurance Agent or Insurance Solicitor Has Been Revoked or Suspended |
Sec. 1. It shall be unlawful for any person, whose license as an insurance agent or insurance solicitor has been suspended or revoked, to do or perform any of the acts of an insurance agent or insurance solicitor. Any person violating this section shall be guilty of a felony and upon conviction shall be punished by a fine of not more than Five Thousand Dollars ($5,000) or be imprisoned for not more than two years, or be punished by both fine and imprisonment.
Sec. 2. It shall be unlawful for any insurance agent or insurance solicitor with a license to engage in the business of soliciting and writing insurance to assist, aid or conspire with a person, whose license as an insurance agent or insurance solicitor has been suspended or revoked, to engage in any acts as an insurance agent or insurance solicitor. Any person violating this section shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than One Thousand Dollars ($1,000) or confined in jail for not more than six months, or be punished by both fine and confinement in jail. |
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| CHAPTER 101. UNAUTHORIZED INSURANCE
§ 101.102. UNAUTHORIZED INSURANCE PROHIBITED
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(a) A person, including an insurer, may not directly or indirectly do an act that constitutes the business of insurance under this chapter except as authorized by statute.
(b) With respect to insurance of a subject that is resident, located, or to be performed in this state, this section does not prohibit an act performed outside this state, including the collection of premiums, by a person, including an insurer, authorized to do business in this state if the transaction and insurance contract otherwise comply with statute |
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| § 101.106. CRIMINAL PENALTY |
(a) A person, including an insurer, who violates Section 101.102 commits an offense.
(b) An offense under this section is a felony of the third degree.
(c) It is a defense to prosecution under this section that Section 101.051 or 101.052, as applicable, by its terms does not apply to the person charged. |
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CHAPTER 548. INSURER INSIDER TRADING AND PROXY REGULATION
§ 548.201. OFFENSES; CRIMINAL PENALTY
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| (a) A person commits an offense if the person intentionally: |
(1) violates this chapter or a rule adopted under this chapter; or
(2) makes or causes to be made a statement that is false or misleading with respect to a material fact in a document required to be filed by this chapter or a rule adopted under this chapter. |
| (b) Except as provided by Subsection (c), an offense under this section is punishable by: |
(1) a fine not to exceed $10,000;
(2) imprisonment for not more than two years; or
(3) both the fine and imprisonment. |
| (c) A person may not be punished by imprisonment for violating a rule as prescribed by this section if the person proves that the person had no knowledge of the rule. |
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CHAPTER 823. INSURANCE HOLDING COMPANY SYSTEMS
§ 823.501. OFFENSE OF VIOLATING CHAPTER
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(a) A person commits an offense if the person is an insurer or individual and wilfully violates this chapter.
(b) If the person is an insurer, an offense under Subsection (a) is a misdemeanor punishable by a fine not to exceed $50,000 for each violation.
(c) If the person is an individual, an offense under Subsection (a) is a misdemeanor punishable by a fine not to exceed $10,000 for each violation except as provided by Subsection (d) and Section 823.502.
(d) An offense under Subsection (a) is a felony if the person is an individual and the violation involves the deliberate perpetration of a fraud on the department, an insurer, an insurer's subsidiary, or policyholders. The felony is punishable by: |
(1) imprisonment for a term not to exceed five years;
(2) a fine not to exceed $10,000 for each violation; or
(3) both fine and imprisonment under this subsection. |
(e) A fine under this section is in addition to any civil or administrative penalty.
(f) An individual on whom a fine is imposed under this section shall pay the fine in that person's individual capacity. |
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| § 823.502. OFFENSE OF SUBSCRIBING TO OR MAKING FALSE STATEMENT |
(a) A person commits an offense if the person is an officer, director, or employee of a domestic insurer or the insurer's insurance holding company system and wilfully and knowingly subscribes to or makes or causes to be made a false statement on a written instrument required to be filed with the commissioner.
(b) An offense under Subsection (a) is a felony punishable by: |
(1) imprisonment for a term of not less than two years;
(2) a fine not to exceed $10,000 for each violation; or
(3) both fine and imprisonment under this subsection. |
| (c) A person on whom a fine is imposed under this section shall pay the fine in that person's individual capacity. |
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CHAPTER 841. LIFE, HEALTH, OR ACCIDENT INSURANCE COMPANIES
§ 841.704. FALSE STATEMENT, REPORT, OR OTHER DOCUMENT; CRIMINAL PENALTY
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(a) A person commits an offense if the person executes or causes to be executed a statement, report, or other document required by law to be filed with the commissioner that contains a material statement or fact that the person knows to be false.
(b) A person commits an offense if the person is an officer of an insurance company that is not organized under the laws of this state and the person files a statement, report, or other document required by law to be filed with the commissioner that contains a material statement or fact that the person knows to be false.
(c) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not less than one year. |
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CHAPTER 846. MULTIPLE EMPLOYER WELFARE ARRANGEMENTS
§ 846.107. RECEIPT OF THING OF VALUE; CRIMINAL PENALTY
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| (a) A board member, officer, or employee of a multiple employer welfare arrangement may not, knowingly and intentionally, directly or indirectly: |
| (1) receive money or another valuable thing for negotiating, procuring, recommending, or aiding in: |
(A) a purchase by or sale to the arrangement of property; or
(B) a loan from the arrangement; or |
| (2) be pecuniarily interested as a principal, coprincipal, agent, or beneficiary in a purchase, sale, or loan described by Subdivision (1). |
| (b) A person commits an offense if the person violates this section. An offense under this subsection is a felony of the third degree. |
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CHAPTER 882. MUTUAL LIFE INSURANCE COMPANIES
§ 882.252. INVESTMENT OF MONEY
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(a) A mutual life insurance company shall invest the company's money in accordance with the law governing investments of life, health, and accident insurance companies organized under Chapter 841.
(b) An officer of a mutual life insurance company who does not invest the money of the company as required by Subsection (a) shall deposit the money in the name of the company in a bank that: |
(1) is subject to state or federal regulation; and
(2) has been approved by the commissioner as a depository for that purpose. |
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| § 882.702. INVESTMENT AND DEPOSIT OF FUNDS; CRIMINAL PENALTY |
(a) A person commits an offense if the person is an officer or director of a mutual life insurance company and the person knowingly or wilfully violates or assents to the violation of Section 882.252.
(b) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than five years or less than one year. |
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CHAPTER 883. MUTUAL INSURANCE COMPANIES OTHER THAN MUTUAL LIFE INSURANCE COMPANIES
§ 883.703. FALSE STATEMENT OR MISAPPROPRIATION
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(a) A person commits an offense if the person intentionally submits a false statement or misappropriates the funds of a mutual insurance company organized under the laws providing for the incorporation of mutual fire, lightning, hail, and storm insurance companies.
(b) An offense under this section is a felony punishable by confinement in the institutional division of the Texas Department of Criminal Justice for not less than 5 years or more than 10 years. |
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CHAPTER 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES
§ 887.701. UNLAWFUL CONVERSION; CRIMINAL PENALTY
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| (a) A director, officer, agent, employee, attorney at law, or attorney in fact of an association commits an offense if the person: |
(1) fraudulently takes, misapplies, or converts to the person's own use any money, property, or other item of value belonging to the association or coming into the person's custody, control, or possession by virtue of the person's office, agency, or employment;
(2) conceals any item described by Subdivision (1) with the intent to take, misapply, or convert the item to the person's own use; or
(3) pays or delivers any item described by Subdivision (1) to any other person, knowing that the other person is not entitled to receive the item. |
| (b) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years. |
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| § 887.702. DIVERSION OF SPECIAL FUNDS; CRIMINAL PENALTY |
| (a) A director, officer, agent, employee, attorney at law, or attorney in fact of an association commits an offense if the person wilfully borrows, withholds, or diverts from its purpose all or part of a special fund that: |
(1) belongs to or is under the management and control of an association; and
(2) is designated by law or by rule of the commissioner for a specific use. |
| (b) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years. |
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| § 887.703. APPROPRIATION OF MONEY; CRIMINAL PENALTY |
(a) An officer or employee of a mutual accident insurance company commits an offense if the person uses or appropriates, or knowingly permits the use or appropriation by another of, any money belonging to the company in a manner not provided for by the law authorizing the organization of the company.
(b) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years. |
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CHAPTER 912. COUNTY MUTUAL INSURANCE COMPANIES
§ 912.802. CONVERSION; CRIMINAL PENALTY
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(a) A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person fraudulently takes or converts to the person's own use or secretes with the intent to take or convert to the person's own use, and with knowledge that the person is not entitled to receive it, any property or other thing of value of the company that is in the person's custody, control, or possession as a result of the person's office, directorship, agency, or employment or in any other manner.
(b) A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person pays or delivers property or another thing of value described by Subsection (a) to another person knowing that the person is not entitled to receive it.
(c) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years. |
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| § 912.803. UNLAWFUL DIVERSION OF FUNDS; CRIMINAL PENALTY |
| (a) A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person wilfully borrows, withholds, or diverts from its purpose in any manner all or part of a special fund that: |
(1) belongs to or is under the control and management of the company; and
(2) is designated by law for that purpose. |
| (b) An offense under this section is punishable by imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years. |
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| § 912.804. FALSE AFFIDAVIT; CRIMINAL PENALTY |
(a) An officer, director, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person wilfully makes a false affidavit in connection with the requirements of this chapter.
(b) An offense under this section is punishable by: |
(1) a fine of not more than $500; or
(2) confinement in jail or imprisonment in the institutional division of the Texas Department of Criminal Justice for a term of not more than two years. |
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| CHAPTER 4005. CONDUCT, DISCIPLINARY ACTIONS, AND SANCTIONS
§ 4005.151. ACTING AS AGENT AFTER LICENSE SUSPENSION OR REVOCATION; CRIMINAL PENALTY
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(a) A person commits an offense if the person acts as an agent after the person's agent license has been suspended or revoked.
(b) An offense under this section is a felony punishable by: |
(1) a fine not to exceed $5,000;
(2) imprisonment for a term of not more than two years; or
(3) both fine and imprisonment under this subsection. |
