SECTION 3.4008. Procedures for Corrections to Non-Compliant Exempt Forms

(a) In order to monitor the appropriateness and effectiveness of the exemption provisions, the department will conduct periodic random and targeted audits of forms filed under these sections. Any compliance deficiencies identified during the audit process will be communicated to the insurer with a request for corrective action. Any failure to acknowledge a request and provide a plan for corrective action will be subject to the provisions of §3.4009 of this title (relating to Sanctions).

(b) In the event that an insurer becomes aware, without notification by the department, that a form filed as exempt under the provisions of this subchapter (relating to Exemption from Review and Approval of Certain Life, Accident, Health, and Annuity Forms and Expedition of Review) does not comply with the Insurance Code or the rules of the Texas Department of Insurance or the laws or regulations of the United States, the insurer shall promptly notify the department in writing of the form number, the nature of the non-compliance, and the insurer's plan for corrective action to remedy the non-compliance situation.

(c) In the event that an insurer becomes aware, without notification by the department, that a form filed as exempt under the provisions of this subchapter was not eligible to be filed exempt, the insurer shall promptly notify the department, withdraw the form filed as exempt and refile the form in accordance with the applicable filing requirements of this chapter.

Source Note: The provisions of this §3.4008 adopted to be effective April 14, 1983, 8 TexReg 1067; amended to be effective March 12, 1996, 21 TexReg 1673; amended to be effective January 9, 2000, 25 TexReg 124