§ 886.702 — GROUNDS FOR DISSOLUTION OR FORFEITURE.

Texas § 886.702

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 886.702. GROUNDS FOR DISSOLUTION OR FORFEITURE. (a) In addition to any other penalties imposed on a local mutual aid association or on its members or officers, an association is subject to dissolution and forfeiture of its right to engage in the business of insurance if the association:
(1) ceases to engage in the business of insurance;
(2) falls below the requirements of this chapter;
(3) engages in the business of insurance without a certificate of authority;
(4) fails to make reports as required by law;
(5) refuses to submit to examination by the department or pay the cost of an examination;
(6) engages in the business of insurance in a fraudulent, illegal, or dishonest manner; or
(7) violates this chapter.
(b) The attorney general shall, at the request of the department, file any action necessary to wind up the affairs of an association to which Subsection (a) applies and provide for the appointment of a receiver if necessary.
(c) An action under this section must be brought in Travis County.

Legislative History

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.