SECTION 7.1404. Service of Process Procedure for Domestic Insurers Approved To Operate under the Insurance Code, Article 1.28, Foreign and Alien Insurance Companies, Risk Retention Groups, Purchasing Groups, Third Party Administrators, Unauthorized Persons or Insurers, Organizations Formed under the Insurance Code, Article 3.71, and Surplus Lines Insurers

(a) Person, place, and time for service. If service of legal process, notice, or demand is to be effected on a company or organization by serving the commissioner, the process, notice, or demand may be served personally or by certified or registered mail. Personal service must be effected by a disinterested person over 18 years of age by leaving two copies of the process, notice, or demand with the commissioner or with any appointee of the commissioner authorized to receive process at the offices of the State Board of Insurance during regular business hours.

(b) Required fee. A fee of $50, payable by check or money order to the Texas Department of Insurance, must be provided for each legal process, notice, or demand served on the commissioner, and the fee must accompany each service of legal process, notice, or demand filed with the commissioner.

(c) Requirements for the citation filed with the commissioner. The citation must be directed to the defendant insurance company or organization, must be served through the commissioner, and must include the following:

(1) for a licensed company, the name and address of the company or organization as it appears in the records of the State Board of Insurance;

(2) for an unauthorized person or insurer, the name and address of the person or insurer to be served;

(3) for a surplus lies insurer, the name and address of the company to be served;

(4) for a risk retention group, the name and address of the group to be served;

(5) for a purchasing group, foreign or domestic, the name and address of the group to be served;

(6) for a third party administrator, the name and address of the entity to be served; or

(7) for an unincorporated association, trust, or other organization formed under the Insurance Code, Article 3.71, the name and address of the association, trust, or organization.

(d) Forwarding by commissioner. If the process, notice, or demand served on the commissioner is in full compliance with the requirements of subsections (a)-(c) of this section, the commissioner shall immediately have one copy forwarded by certified or registered mail to:

(1) the home office or principal business office of the company, if licensed, as indicated in the records of the State Board of Insurance; or

(2) the defendant at the address supplied in the citation as provided by subsection (c)(2), (3), (4), (5), (6), or (7) of this section.

(e) Effect of failure to comply with filing requirements. Failure to fully comply with the filing requirements of subsections (a)-(c) of this section will result in the return of the citation and related documents to the plaintiff or petitioner, to a representative of the plaintiff or petitioner, or to the appropriate court official involved. The fee will not be reimbursed in such instances. An explanation of the action taken will accompany the documents being returned.

(f) Commissioner's record of service. The commissioner shall keep a record of any process, notice, or demand served on the commissioner under this subchapter and of the action taken by the commissioner with reference to the process, notice, or demand.

(g) Certificate of service and fee therefor. Upon receiving the return receipt, the commissioner shall mail a certificate of service and proof of delivery by a return receipt for certified or registered mail to the plaintiff and clerk of the court or agency where the case is pending, at the address provided by the plaintiff. The commissioner shall provide on request additional certificates issued by the commissioner showing the service and proof of delivery by a return receipt for certified or registered mail. The fee for each such additional certificate of service shall be the same fee normally charged for affixing the official seal and certifying to the seal.

(h) Effect of service on the commissioner. Service on the commissioner acting as attorney for service constitutes service on the principal.

Source Note: The provisions of this §7.1404 adopted to be effective August 11, 1989, 14 TexReg 3690; amended to be effective October 27, 1995, 20 TexReg 8453; amended to be effective April 23, 1996, 21 TexReg 3190.