Texas Insurance Code, Title 5 (Protection of Consumer Interests)

What this document is

Texas Insurance Code, Title 5 (Protection of Consumer Interests): chs. 521, 541, 542, 544, 547, 551, 552, 554, 555, 557, 558 and 559, each complete (Secs. 521.001-521.153, 541.001-541.454, 542.001-542.302, 544.001-544.653, 547.001-547.053, 551.001-551.254, 552.001-552.003, 554.001-554.002, 555.001-555.002, 557.001-557.052, 558.001-558.004, 559.001-559.201) is a state statute published by Texas Legislative Council (statutes.capitol.texas.gov; document host tcss.legis.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas property & casualty, texas personal lines, texas claims adjuster 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 § 542.056(a) (Notice of Acceptance or Rejection of Claim)

  “(a) Except as provided by Subsection (b) or (d), an insurer shall notify a claimant in writing of the acceptance or rejection of a claim not later than the 15th business day after the date the insurer receives all items, statements, and forms required by the insurer to secure final proof of loss.”

• Tex. Ins. Code § 551.104(c) (Authorized Cancellation of Policies)

  “(c) An insurer may cancel a policy, other than a personal automobile insurance policy, if there is an increase in the hazard covered by the policy that is within the control of the insured and that would produce an increase in the premium rate of the policy.”

• Tex. Ins. Code § 542.060(a) (Liability for Violation of Subchapter)

  “(a) Except as provided by Subsection (c), if an insurer that is liable for a claim under an insurance policy is not in compliance with this subchapter, the insurer is liable to pay the holder of the policy or the beneficiary making the claim under the policy, in addition to the amount of the claim,...”

• Tex. Ins. Code § 551.052(a) (Cancellation Prohibited; Exceptions)

  “An insurer may not cancel a liability insurance or commercial property insurance policy that is a renewal or continuation policy.”

• Tex. Ins. Code § 559.001(6) (Definitions)

  “(6) "Credit information" means any credit-related information derived from a credit report, found in a credit report itself, or provided in an application for personal insurance. The term does not include information that is not credit-related, regardless of whether that information is contained in...”

• Tex. Ins. Code § 559.053(a) (Disclosure to Consumer Regarding Use of Credit Scoring)

  “Sec. 559.053. DISCLOSURE TO CONSUMER REGARDING USE OF CREDIT SCORING. (a) An insurer that uses credit scoring in the underwriting or rating of insurance subject to this chapter shall disclose to each applicant for insurance coverage that the applicant's credit report may be used in the underwriting...”

• Tex. Ins. Code § 559.055(a) (Dispute Resolution; Error Correction)

  “Sec. 559.055. DISPUTE RESOLUTION; ERROR CORRECTION. (a) If it is determined through the dispute resolution process established under Section 611(a)(5), Fair Credit Reporting Act (15 U.S.C. Section 1681i), as amended, that the credit information of a current insured was inaccurate or incomplete or...”

• Tex. Ins. Code § 559.054(c) (Notice of Action Resulting in Adverse Effect)

  “(c) The use by an insurer of a generalized term such as "poor credit history," "poor credit rating," or "poor credit score" does not constitute sufficient notice under this section of the action resulting in the adverse effect.”

• Tex. Ins. Code § 551.103 (Cancellation)

  “For the purposes of this subchapter, an insurer has canceled an insurance policy if the insurer, without the consent of the insured: (1) terminates coverage provided under the policy; (2) refuses to provide additional coverage to which the insured is entitled under the policy; or (3) except as...”

• Tex. Ins. Code § 551.004 (Transfer Not Considered a Refusal to Renew)

  “Sec. 551.004. TRANSFER NOT CONSIDERED A REFUSAL TO RENEW. For purposes of this chapter and Subchapters C and D, Chapter 1952, the transfer of a policyholder between admitted companies within the same insurance group is not considered a refusal to renew.”

• Tex. Ins. Code § 551.106(c) (Renewal and Reinstatement of Personal Automobile Insurance Policies)

  “Coverage under the policy lapses on the date of cancellation and is not again effective until the date the payment is received by the insurer. Premium is not owed for any period in which the policy is not in effect.”

• Tex. Ins. Code § 542.057(b) (Payment of Claim)

  “(b) If payment of the claim or part of the claim is conditioned on the performance of an act by the claimant, the insurer shall pay the claim not later than the fifth business day after the date the act is performed.”

Practice this material

Questions about this source

More Texas sources

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