SECTION 13.311. Deceptive Acts or Practices

The following are deceptive acts or practices under the Insurance Code, Article 21.21:

(1) representing a group to be a purchasing group located in another state, when the group is actually located in Texas, according to the Insurance Code, Article 21.54, §2(14);

(2) soliciting members in Texas for a purchasing group, or for a group representing itself to be a purchasing group, when:

(A) the group's insurer is insolvent;

(B) the group's insurer is prohibited from engaging in the business of insurance by a court order or administrative order issued in any state; or

(C) the group is prohibited from operating by a court order or administrative order issued in the state in which the group is domiciled;

(3) soliciting members in Texas for a risk retention group, or for a group representing itself to be a risk retention group, when:

(A) the group is insolvent; or

(B) the group is prohibited from doing business by a court order or administrative order issued in the state where the group is chartered.

Source Note: The provisions of this §13.311 adopted to be effective March 8, 1991, 16 TexReg 1290.