Unfair methods of competition and unfair or deceptive acts or practices

What this document is

Tex. Ins. Code ch. 541: Unfair methods of competition and unfair or deceptive acts or practices is a state statute published by Texas Legislature (statutes.capitol.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Tex. Ins. Code § 541.054 (Boycott, Coercion, or Intimidation)

  “commit through concerted action or to enter into an agreement to commit an act of boycott, coercion, or intimidation that results in or tends to result in the unreasonable restraint of or a monopoly in the business of insurance.”

• Tex. Ins. Code § 541.052 (False Information and Advertising)

  “make, publish, disseminate, circulate, or place before the public or directly or indirectly cause to be made, published, disseminated, circulated, or placed before the public an advertisement, announcement, or statement containing an untrue, deceptive, or misleading assertion, representation, or...”

• Tex. Ins. Code § 541.060 (Unfair Settlement Practices)

  “refusing to pay a claim without conducting a reasonable investigation with respect to the claim;”

• Tex. Ins. Code § 541.060(a)(9) (Unfair Settlement Practices)

  “requiring a claimant as a condition of settling a claim to produce the claimant's federal income tax returns for examination or investigation by the person unless: (A) a court orders the claimant to produce those tax returns; (B) the claim involves a fire loss; or (C) the claim involves lost profits or income.”

• Tex. Ins. Code § 541.060(a)(2) (Unfair Settlement Practices)

  “failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of: (A) a claim with respect to which the insurer's liability has become reasonably clear;”

• Tex. Ins. Code § 541.061 (Misrepresentation of Insurance Policy)

  “It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to misrepresent an insurance policy by: (1) making an untrue statement of material fact; (2) failing to state a material fact necessary to make other statements made not misleading,...”

• Tex. Ins. Code § 541.060(a) (Unfair Settlement Practices)

  “It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to engage in the following unfair settlement practices with respect to a claim by an insured or beneficiary: (1) misrepresenting to a claimant a material fact or policy provision relating to...”

• Tex. Ins. Code § 541.103 (Hearing on Charges)

  “A person against whom charges are made under Section 541.102 is entitled at the hearing on the charges to have an opportunity to be heard and show cause why the department should not issue an order requiring the person to cease and desist from the unfair method of competition or unfair or deceptive...”

• Tex. Ins. Code § 541.110 (Administrative Penalty for Violating Cease and Desist Order)

  “A person who violates a cease and desist order issued under Section 541.108 is subject to an administrative penalty under Chapter 84.”

• Tex. Ins. Code § 541.152 (Damages, Attorney's Fees, and Other Relief)

  “Except as provided by Subsection (c), on a finding by the trier of fact that the defendant knowingly committed the act complained of, the trier of fact may award an amount not to exceed three times the amount of actual damages.”

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