SECTION 13.582. Limitation, Suspension, or Cancellation of Certificate of Approval in Response to TDI Action

(a) Commissioner's authority. Nothing in this section limits the commissioner's authority under Insurance Code Chapters 404, Financial Condition; 406, Special Deposits Required Under Potentially Hazardous Conditions; 441, Supervision and Conservatorship; or 443, the Insurer Receivership Act.

(b) Limitation, suspension, or cancellation of certificate. The commissioner will limit, suspend, or cancel an approved PEO's certificate of approval if the commissioner finds that the approved PEO or its plan or trust do not meet the requirements of applicable Insurance Code provisions or this subchapter.

(c) Notice of limitation; commissioner's hearing. The commissioner will issue a written notice to an approved PEO stating the basis for a limitation under subsection (b) of this section. If within 30 days of receiving a notice of limitation the approved PEO submits a written request for review by the commissioner, the commissioner will schedule a hearing under Insurance Code Chapter 40, at which the approved PEO will be given an opportunity to show compliance with this subchapter. Hearings described in this subchapter will be conducted as required by Government Code Chapter 2001, concerning Administrative Procedure; Insurance Code Chapter 40, concerning Duties of State Office of Administrative Hearings and Commissioner in Certain Proceedings; Rate Setting Proceedings; TDI's and State Office of Administrative Hearing's rules of procedure; and any other applicable law and regulations.

(d) Notice of suspension or cancellation. The commissioner will issue a written notice of suspension or of intent to cancel to an approved PEO stating the basis for the suspension or cancellation under subsection (b) of this section.

(e) Hearing request in contested case. An approved PEO may submit a written request to the commissioner for a hearing at the State Office of Administrative Hearings under Government Code Chapter 2001, Administrative Procedure, within 30 days of receiving notice that its certificate of approval:

(1) remains limited after a commissioner's hearing under subsection (c) of this section,

(2) is suspended under subsection (d) of this section, or

(3) will be canceled under subsection (d) of this section.

(f) At that hearing the approved PEO will be given an opportunity to show compliance with this subchapter.

Source Note: The provisions of this §13.582 adopted to be effective May 17, 2016, 41 TexReg 3479