SECTION 3.9305. Limitations on Entities Subject to Department Regulation

(a) Prior to executing the donation agreement described by §3.9306 of this subchapter (relating to Procedures for Acceptance of Donations), an offeree subject to department regulation pursuant to the Insurance Code, the Labor Code, or federal law, must notify the department, on a completed form that is acceptable to the department, whether the offeree:

(1) is the subject of an open investigation or enforcement action of the department;

(2) has applied for a certificate of authority, license, or other department issued permit;

(3) is seeking a letter of consent pursuant to 18 U.S.C. §1033; or

(4) is the subject of an enforcement action of another state agency.

(b) Individuals and entities subject to subsection (a) of this section include:

(1) licensees; certificate holders; permit holders; applicants for a license, certificate of authority, or other department issued permit;

(2) individuals requesting letters of consent pursuant to 18 U.S.C. §1033; and

(3) employers, employees, and providers who engage in the business of insurance or participate in the worker's compensation system in this state.

(c) The notification required in subsection (a) of this section must include the docket number, style, and filing date of the enforcement action, if applicable.

(d) An offeree subject to subsection (a) of this section may not make a donation to the department from the date the department initiates an open investigation or enforcement action against the offeree; the offeree applies for a certificate of authority, license, or other department issued permit; the offeree requests a letter of consent pursuant to 18 U.S.C. §1033; or another state agency initiates an enforcement action against the offeree; until the 90th day after the date the department or other state agency closes its open investigation or reaches final disposition in its enforcement action; the department issues or denies the certificate of authority, license, or other department issued permit; or the department provides or refuses to provide a letter of consent pursuant to 18 U.S.C. §1033.

(e) A notification pursuant to subsection (a) of this section is not required for form filings, data calls, or other matters not specified in subsection (a) of this section.

Source Note: The provisions of this §3.9305 adopted to be effective December 27, 2006, 31 TexReg 10307