Unfair Competition and Unfair Practices of Insurers, and Misrepresentation of Policies

What this document is

28 Tex. Admin. Code ch. 21, subch. A - Unfair Competition and Unfair Practices of Insurers, and Misrepresentation of Policies (ss. 21.1-21.6) is a regulation published by Cornell Legal Information Institute (law.cornell.edu), publication of the Texas Administrative Code. It is one of the Texas documents that insurance license exam questions are written from, including 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.

• 28 Tex. Admin. Code s. 21.4 (Misrepresentation Defined; Standards for Determining Misrepresentation)

  “The term misrepresentation, or the prohibited conduct, act, or practice that constitutes misrepresentation by a person subject to the provisions of these sections, is defined as any one of the following acts or omissions: (1) any untrue statement of a material fact; (2) any omission to state a...”

• 28 Tex. Admin. Code § 21.4 (Misrepresentation Defined; Standards for Determining Misrepresentation)

  “(3) the making of any statement in such manner or order as to mislead a reasonably prudent person to a false conclusion of a material fact;”

• 28 Tex. Admin. Code § 21.4(4), (5) (Misrepresentation Defined; Standards for Determining Misrepresentation)

  “(4) any material misstatement of law; or (5) any failure to disclose any matter required by law to be disclosed, including failure to make disclosures in accordance with the provisions of these sections and other applicable rules.”

• 28 Tex. Admin. Code § 21.6 (Prohibition against the Use of Guaranty Fund Protection in the Sale of Insurance)

  “The use in any manner of the protection afforded by the Life and Health Insurance Guaranty Association Act (the Act) by any person in the sale of any product included within the scope of the Act (Insurance Code Chapter 463) will constitute unfair competition and unfair practices under Insurance...”

• 28 Tex. Admin. Code § 21.3(b) (Unfair Trade Practices Prohibited)

  “(b) Irrespective of the fact that the improper trade practice is not defined in any other section of these rules and regulations, no person may engage in this state in any trade practice which is determined pursuant by law to be an unfair method of competition or an unfair or deceptive act or...”

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Questions about this source

More Texas sources

• Texas Government Code ch. 2001 -- Administrative Procedure Act, complete (Secs. 2001.001-2001.903)State statute
• Texas Government Code Chapter 2253, Public Work Performance and Payment Bonds, complete: Subchapters A-D, Secs. 2253.001-2253.079State statute
• Tex. Ins. Code ch. 541: Unfair methods of competition and unfair or deceptive acts or practicesState statute
• Tex. Ins. Code ch. 1101: Life insurance required and prohibited policy provisionsState statute
• Tex. Ins. Code ch. 4001: Agent licensing in generalState statute
• Tex. Ins. Code ch. 4005: Conduct, disciplinary actions, and sanctionsState statute
• Tex. Ins. Code ch. 1201: Accident and health insurance policy provisionsState statute
• Texas Insurance Code Chapter 151, Consolidated Insurance Programs, complete: Subchapters A-D, Secs. 151.001-151.151State statute