28 Tex. Admin. Code § 3.4009 - Sanctions and Cancellation of Exempt Filing Privileges
(a) The privileges under this subchapter that
permit an insurer to make exempt filings may be canceled if the insurer makes
an exempt filing that fails to comply with one or more provisions of this title
or the Insurance Code that results in the department determining that the
filing has failed audit. If the issuer disagrees with TDI's determination under
this section, it may request a hearing. The department will issue a notice of
failed audit consistent with §
3.4008 of this title (relating to
Procedures for Corrections to Non-Compliant Exempt Forms) that explains:
(1) the compliance deficiencies identified
during the audit process;
(2) the
corrective action required;
(3) the
cancellation of the insurer's exempt filing privileges; and
(4) how those privileges may be
reinstated.
(b) If an
insurer's privileges to make exempt filings under this subchapter are
cancelled, the insurer is required to file for review and approval any and all
forms intended for use in Texas, until the privileges under these sections are
reinstated.
(c) Reinstatement of
any privilege canceled under these sections will occur after a period of not
more than one year, as provided in the notice of failed audit under subsection
(a) of this section. An insurer may make application for reinstatement prior to
the passage of the period specified in the notice of failed audit under
subsection (a) of this section.
(d)
Nothing in these sections limits the commissioner from imposing any other
sanction authorized by the Insurance Code or other applicable law.
Notes
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(a) The privileges under these sections are canceled for an insurer if either of the determinations in paragraphs (1) or (2) of this subsection are made after notice and hearing as follows:
(1) an insurer 's filing made under § 3.4004 of this title (relating to Exempt Forms) fails to comply with § 3.4005 of this title (relating to General Information); or
(2) an insurer 's filing made under § 3.4004(g) of this title fails to be an exact copy of a filing previously approved.
(b) In the event of cancellation of privileges under these sections, the insurer is henceforth required to file for review and approval any and all forms intended for use in Texas, until such time as privileges under these sections are reinstated.
(c) Reinstatement of any privilege canceled under these sections will occur after a period of one year from the date the privileges finally terminate, unless otherwise determined by the commissioner. An insurer may make application for reinstatement prior to the passage of one year following termination of such privileges.
(d) Nothing in these sections limits the commissioner from imposing any other sanction authorized by the Insurance Code or other applicable law.