Texas § 1806.055 PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS.

Texas Statutes

§ 1806.055 — PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS.

Texas § 1806.055

Code INInsurance Code

This text of Texas § 1806.055 (PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 1806.055 (2026).

Text

Sec. 1806.055. PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS.

(a)Section 1806.054 does not prohibit an insurer from sharing earned profits with the insurer's policyholders under a profit sharing agreement contained in the policy if:

(1)the insurer shares profits uniformly among those insured under the policy; and

(2)the insurer distributes earnings equitably among those insureds under the terms of the policy.

(b)An insurer may not:

(1)discriminate in the distribution of profits among insureds of the same class;

(2)distribute the profit to an insured before the expiration of the policy; or

(3)establish a class of insureds for the distribution of profits, except on the commissioner's approval.

(c)A violation of this section is unjust discrimination and rebating.

(d)The commissione

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Sec. 1806.055. PROFIT SHARING AUTHORIZED; CERTAIN PROHIBITIONS. (a) Section 1806.054 does not prohibit an insurer from sharing earned profits with the insurer's policyholders under a profit sharing agreement contained in the policy if:
(1) the insurer shares profits uniformly among those insured under the policy; and
(2) the insurer distributes earnings equitably among those insureds under the terms of the policy.
(b) An insurer may not:
(1) discriminate in the distribution of profits among insureds of the same class;
(2) distribute the profit to an insured before the expiration of the policy; or
(3) establish a class of insureds for the distribution of profits, except on the commissioner's approval.
(c) A violation of this section is unjust discrimination and rebating.
(d) The commissioner may revoke the certificate of authority of an insurer that violates this section or the license of an agent who violates this section.