Insurance Code Title 2. Texas Department Of Insurance Subtitle A .

INSURANCE CODEAdded by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 10.04, eff. Jan.11, 2004.SUBCHAPTER C. PERSONNELSec. 31.041. DEPARTMENT PERSONNEL. (a) Subject to the GeneralAppropriations Act or other law, the commissioner shall appointdeputies, assistants, and other personnel as necessary to carry outthe powers and duties of the commissioner and the department underthis code, other insurance laws of this state, and other lawsgranting jurisdiction or applicable to the department or thecommissioner.(b) A person appointed under this section must have theprofessional, administrative, and insurance experience necessary toqualify the person for the position to which the person is appointed.(c) A person appointed as an associate or deputy commissioneror to hold an equivalent position must have at least five years ofthe experience required for appointment as commissioner under Section31.023. At least two years of that experience must be in workrelated to the position to be held.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 31.042. DIVISION OF RESPONSIBILITIES. The commissionershall develop and implement policies that clearly define therespective responsibilities of the commissioner and the staff of thedepartment.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 31.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (a)The commissioner or the commissioner's designee shall prepare andmaintain a written policy statement to ensure implementation of aprogram of equal employment opportunity under which all personneltransactions are made without regard to race, color, disability, sex,religion, age, or national origin. The policy statement mustinclude:(1) personnel policies, including policies relating torecruitment, evaluation, selection, appointment, training, andStatute text rendered on: 2/24/2022- 8 -

INSURANCE CODEpromotion of personnel that are in compliance with Chapter 21, LaborCode;(2) a comprehensive analysis of the department workforcethat meets federal and state guidelines;(3) procedures by which a determination can be made ofsignificant underuse in the department workforce of all persons forwhom federal or state guidelines encourage a more equitable balance;and(4) reasonable methods to appropriately address those areasof significant underuse.(b) A policy statement prepared under this section must:(1) cover an annual period;(2) be updated annually;(3) be reviewed by the Commission on Human Rights forcompliance with Subsection (a); and(4) be filed with the governor.(c) The governor shall deliver a biennial report to thelegislature based on the information received under Subsection (b).The report may be made separately or as a part of other biennialreports made to the legislature.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 31.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. Thecommissioner shall provide to department employees, as often asnecessary, information regarding their:(1) qualification for office or employment under this code;and(2) responsibilities under applicable laws relating tostandards of conduct for state employees.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 31.045. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS.(a) The commissioner or the commissioner's designee shall develop anintra-agency career ladder program. The program must require intraagency posting of all nonentry level positions concurrently with anypublic posting.(b) The commissioner or the commissioner's designee shallStatute text rendered on: 2/24/2022- 9 -

INSURANCE CODEdevelop a system of annual performance evaluations. All merit payfor department employees must be based on the system establishedunder this subsection.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.CHAPTER 32. ADMINISTRATIVE POWERS AND DUTIESSUBCHAPTER A. RECORDSSec. 32.001. GIVING CERTIFIED COPIES AND CERTIFICATES. (a) Onrequest and on payment of the required fee, the department shall:(1) certify a copy of a paper or a record in a departmentoffice and give the certified copy to any person when thecommissioner determines that providing the copy is not prejudicial tothe public interest; and(2) give a certificate as provided by other law.(b) A fee collected by the department under this section shallbe deposited in the general revenue fund to the credit of the TexasDepartment of Insurance operating account.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 32.0015. FILING ARTICLES OF INCORPORATION AND OTHERPAPERS; CERTIFIED COPIES. (a) The department shall file andmaintain in a department office:(1) all insurance companies' acts or articles ofincorporation; and(2) any other paper required by law to be filed with thedepartment.(b) The department shall provide a certified copy of a documentdescribed by Subsection (a)(1) or (2) to a party interested in thedocument who:(1) submits an application; and(2) pays the fee prescribed by law.Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.002,eff. April 1, 2009.Sec. 32.002.RECORD OF DEPARTMENT PROCEEDINGS.Statute text rendered on: 2/24/2022- 10 -The department

INSURANCE CODEshall maintain a complete record of the department's proceedings.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 32.003. STATEMENTS REGARDING CONDITION OF EXAMINEDCOMPANIES. The department shall maintain a concise statement of thecondition of each company or agency visited or examined.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 32.004. PUBLICATION OF RESULTS OF EXAMINATION. Thedepartment shall publish the results of an examination of a company'saffairs if the commissioner determines that publication is in thepublic interest.Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1A.002,eff. April 1, 2009.SUBCHAPTER B. REPORTSSec. 32.021. ANNUAL REPORTS. (a) The department shall fileannually with the governor and the presiding officer of each house ofthe legislature a complete and detailed written report that includes:(1)a description of the commissioner's official acts;(2) a description of the condition of companies doingbusiness in this state; and(3) other information that exhibits the affairs of thedepartment.(b) The annual report required by Subsection (a) must be in theform and reported in the time provided by the General AppropriationsAct.(c) The department shall:(1) send a copy of the annual report required by Subsection(a) to the insurance commissioner or other similar officer of everystate; and(2) on request, send a copy to any company doing businessin this state.(d) The department shall print a separate premium and lossreport that contains and arranges in tabular form the premium andStatute text rendered on: 2/24/2022- 11 -

INSURANCE CODEloss information contained in the annual statements for companiesdoing business in this state.(e) The department shall file the report required by Subsection(d) with the Legislative Reference Library and the Texas StateLibrary with the annual report required by Subsection (a).(f) The department shall notify the legislature of theavailability of the reports required by this section.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Amended by:Acts 2013, 83rd Leg., R.S., Ch. 1312 (S.B. 59), Sec. 76, eff.September 1, 2013.Sec. 32.022. BIENNIAL REPORT TO LEGISLATURE. (a) On or beforeDecember 31 of each even-numbered year, the department shall submitto the appropriate committees of each house of the legislature awritten report that indicates any needed changes in the laws relatingto regulation of the insurance industry or any other industry oroccupation under the jurisdiction of the department and that statesthe reasons for the needed changes.(b) If the commissioner determines that any capital or surplusrequirements established by this code for any insurance companies areinadequate, the department shall:(1) include in the biennial report specific recommendationsrelating to the amounts at which the capital or surplus requirementsshould be set and the findings and evidence on which thoserecommendations are based; and(2) submit the biennial report to the governor.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 32.023. REPORTS TO OTHER STATES. On request, thedepartment shall provide to the insurance commissioner or othersimilar officer of another state information relating to a company ofthis state that does business in the other state if:(1) the other state has enacted the substantial provisionsof the insurance laws of this state; and(2) the commissioner or other similar officer has a legalduty to obtain the information.Statute text rendered on: 2/24/2022- 12 -

INSURANCE CODEAdded by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.SUBCHAPTER C. FORMSSec. 32.041. FORMS. The department shall furnish to thecompanies required to report to the department the necessary formsfor the required statements.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.SUBCHAPTER D. INTERNET ACCESS TO CERTAIN INFORMATIONSec. 32.101. APPLICABILITY OF SUBCHAPTER. This subchapterapplies to insurers who comprise the top 25 insurance groups in thenational market and who issue residential property insurance orpersonal automobile insurance policies in this state, including aLloyd's plan, a reciprocal or interinsurance exchange, a countymutual insurance company, a farm mutual insurance company, the TexasWindstorm Insurance Association, the FAIR Plan Association, and theTexas Automobile Insurance Plan Association.Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff.May 21, 2007.Sec. 32.102. INTERNET WEBSITE. (a) The department, inconjunction with the office of public insurance counsel, shallestablish and maintain a single Internet website that providesinformation to enable consumers to make informed decisions relatingto the purchase of residential property insurance and personalautomobile insurance. The website must include:(1) a description of each type of residential propertyinsurance policy and personal automobile insurance policy issued inthis state, including a comparison of the coverage, exclusions, andrestrictions of each policy that allows a side-by-side comparison ofthe features of the policy forms;(2) a listing of each insurer writing residential propertyinsurance or personal automobile insurance in this state, indexed byeach county or zip code in which the insurer is actively writing thatinsurance, and a profile of the insurer that includes:(A) contact information for the insurer, including theStatute text rendered on: 2/24/2022- 13 -

INSURANCE CODEinsurer's full name, address, and telephone number and the insurer'sfax number and e-mail address, if available;(B) information on rates charged by the insurer,including:(i) sample rates for different policyholderprofiles in each county or zip code; and(ii) the percentage by which the sample rate hasfallen or risen due to filings in the previous 12, 24, and 36 months;(C) a list of policy forms, exclusions, endorsements,and discounts offered by the insurer;(D) an indication of whether the insurer uses creditscoring in underwriting, rating, or tiering, and a link to theinsurer's credit model or a link explaining how to request theinsurer's credit model;(E) the insurer's financial rating determined by A. M.Best or similar rating organization and an explanation of the meaningand importance of the rating;(F) a complaint ratio or similar complaint ratingsystem for the insurer for each of the previous three years and anexplanation of the meaning of the rating system; and(G) information, other than information madeconfidential by law, on the insurer's regulatory and administrativeexperience with the department, the office of public insurancecounsel, and insurance regulatory authorities in other states; and(3) if feasible, as determined by the commissioner and thepublic insurance counsel:(A) a side-by-side comparison of credit scoring models,including factors, key variables, and weights, of residentialproperty insurers in this state; and(B) a side-by-side comparison of credit scoring models,including factors, key variables, and weights, of private passengerautomobile insurers in this state.(b) The Internet website required by this section may link toand be linked from the department's and the office of publicinsurance counsel's main websites, but must have its own Internetaddress distinct from the address of those main sites.(c) The department and the office of public insurance counselmay include on the Internet website or by link to another site anyother information the department and the office of public insurancecounsel determine is helpful to consumers of residential propertyStatute text rendered on: 2/24/2022- 14 -

INSURANCE CODEinsurance or personal automobile insurance or that the department orthe office of public insurance counsel is authorized or required topublish under this code that relates to residential propertyinsurance or personal automobile insurance.Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff.May 21, 2007.Sec. 32.103. PUBLIC INFORMATION CONCERNING INTERNET WEBSITE.The department shall publicize the existence of the Internet websiterequired by this subchapter.Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff.May 21, 2007.Sec. 32.104. DUTIES OF INSURER. (a) On the request of thedepartment, an insurer shall provide to the department anyinformation the department and the office of public insurance counseldetermine is reasonable or necessary to fulfill the department's andthe office of the public insurance counsel's duties under thissubchapter.(b) An insurer shall provide in a conspicuous manner with eachresidential property insurance or personal automobile insurancepolicy issued in this state notice of the Internet website requiredby this subchapter. The commissioner shall determine the form andcontent of the notice.Added by Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 1, eff.May 21, 2007.SUBCHAPTER E. RULES REGARDING USE OF ADVISORY COMMITTEESSec. 32.151. RULEMAKING AUTHORITY. (a) The commissioner shalladopt rules, in compliance with Section 39.003 of this code andChapter 2110, Government Code, regarding the purpose, structure, anduse of advisory committees by the commissioner, the state firemarshal, or department staff, including rules governing an advisorycommittee's:(1) purpose, role, responsibility, and goals;Statute text rendered on: 2/24/2022- 15 -

INSURANCE CODE(2) size and quorum requirements;(3) qualifications for membership, including experiencerequirements and geographic representation;(4) appointment procedures;(5) terms of service;(6) training requirements; and(7) duration.(b) An advisory committee must be structured and used to advisethe commissioner, the state fire marshal, or department staff. Anadvisory committee may not be responsible for rulemaking orpolicymaking.Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec.2.001, eff. September 1, 2011.Sec. 32.152. PERIODIC EVALUATION. The commissioner shall byrule establish a process by which the department shall periodicallyevaluate an advisory committee to ensure its continued necessity.The department may retain or develop committees as appropriate tomeet changing needs.Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec.2.001, eff. September 1, 2011.Sec. 32.153. COMPLIANCE WITH OPEN MEETINGS ACT. A departmentadvisory committee must comply with Chapter 551, Government Code.Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec.2.001, eff. September 1, 2011.CHAPTER 33. STANDARDS OF CONDUCTSec. 33.001. APPLICATION OF LAW RELATING TO ETHICAL CONDUCT.The commissioner and each employee or agent of the department issubject to the code of ethics and the standard of conduct imposed byChapter 572, Government Code, and any other law regulating theethical conduct of state officers and employees.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Statute text rendered on: 2/24/2022- 16 -

INSURANCE CODESec. 33.002. INSURANCE BUSINESS INTEREST; SERVICE ASCOMMISSIONER. (a) A person is not eligible for appointment ascommissioner if the person, the person's spouse, or any other personwho resides in the same household as the person:(1) is registered, certified, or licensed by thedepartment;(2) is employed by or participates in the management of abusiness entity or other organization regulated by or receiving fundsfrom the department;(3) owns or controls, directly or indirectly, more than a10 percent interest in a business entity or other organizationregulated by or receiving funds from the department; or(4) uses or receives a substantial amount of tangiblegoods, services, or funds from the department, other thancompensation or reimbursement authorized by law.(b) A person is not eligible for appointment as commissioner ifthe person:(1) is a stockholder, director, officer, attorney, agent,or employee of an insurance company, insurance agent, insurancebroker, or insurance adjuster; or(2) is directly or indirectly interested in a businessdescribed by Subdivision (1).(c) Subsection (b) does not apply to:(1) a person solely because the person is insured by aninsurer or is the beneficiary of insurance; or(2) a person who:(A) is appointed as a receiver, liquidator, supervisor,or conservator of an insurer; or(B) is an employee of a receiver, liquidator,supervisor, or conservator of an insurer with respect to duties underthat employment.Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999.Sec. 33.003. INSURANCE BUSINESS INTEREST; EMPLOYEE. (a) Aperson who is a director, officer, attorney, agent, or employee of aninsurance company, insurance agent, insurance broker, or insuranceStatute text rendered on: 2/24/2022- 17 -

INSURANCE CODEadjuster may not be employed by the department.(b) A person who resides in the same household as a person whois an officer, managerial employee, or paid consultant in theinsurance

In this code and other insurance laws: (1) "Commissioner" means the commissioner of insurance. (2) "Department" means the Texas Department of Insurance. Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1, 1999. Sec. 31.002. DUTIES OF DEPARTMENT. In addition to the other duties required of the Texas Department of Insurance, the .