Texas § 2054.510 CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY.

Texas Statutes

§ 2054.510 — CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY.

Texas § 2054.510

Code INInsurance Code

This text of Texas § 2054.510 (CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY.) 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. § 2054.510 (2026).

Text

Sec. 2054.510. CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY.

(a)If a policyholder described by Section 2054.509 (d) does not elect to cancel coverage as provided by that section:

(1)the company may cancel the coverage; or

(2)the commissioner of workers' compensation may impose an administrative penalty on the policyholder.

(b)The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation.

(c)In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider:

(1)the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act;

(2)th

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 2054.510. CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY. (a) If a policyholder described by Section 2054.509 (d) does not elect to cancel coverage as provided by that section:
(1) the company may cancel the coverage; or
(2) the commissioner of workers' compensation may impose an administrative penalty on the policyholder.
(b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation.
(c) In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider:
(1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act;
(2) the history and extent of previous administrative violations;
(3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act;
(4) any economic benefit resulting from the prohibited act; and
(5) the penalty necessary to deter future violations.
(d) A penalty collected under this section:
(1) must be deposited in the general revenue fund; and
(2) may be appropriated to the division to offset the costs of implementing and administering this subchapter.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 2, eff. April 1, 2007. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 3B.055(e), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167 ), Sec. 9.055(e), eff. September 1, 2007.