SECTION 7.1411. Service of Process, Notice, Order, or Pleading on Secretary of State on Behalf of Unauthorized Persons and Insurers

(a) Service of process may be effected on the secretary of state in those actions, suits, or other proceedings brought:

(1) in court by the State Board of Insurance or by the state against unauthorized persons or insurers; or

(2) before the State Board of Insurance by notice, order, pleading, or other process against unauthorized persons or insurers.

(b) Any act of doing an insurance business as provided by the Insurance Code, Article 1.14-1, §2, by an unauthorized person or insurer is equivalent to and constitutes an irrevocable appointment by that person or insurer of the secretary of state to be the lawful attorney for service of that person or insurer. Such appointment is binding on that person or insurer, on the executor, administrator, or personal representative of that person or insurer, or, if that person or insurer is a corporation, on any successor in interest to that person or insurer to be the lawful attorney for service of that person or insurer. The secretary of state may be served legal notice, order, pleading, or other process in any proceeding described by subsection (a) of this section that arises out of doing an insurance business in this state by that person or insurer.

(c) Any act of doing an insurance business as provided by the Insurance Code, Article 1.14-1, §2, by any unauthorized person or insurer signifies that the person or insurer agrees that a notice, order, pleading, or other legal process in the proceeding described by subsection (a) of this section has the same legal force and validity as personal service of process in this state on that person or insurer or on the executor, administrator, or personal representative of that person or insurer, or, if that person or insurer is a corporation, on its successor in interest.

(d) Service of a notice, order, pleading, or other process in a proceeding described by subsection (a) of this section must be made by leaving two copies of the notice, order, pleading, or other process with the secretary of state or with any appointee of the secretary of state authorized to receive service at the office of the secretary of state during regular business hours.

(e) The secretary of state shall mail one copy of the notice, order, pleading, or other process in the proceeding to the defendant in a court proceeding or to the person, company, or other entity to whom the notice, order, pleading, or process in an administrative proceeding is addressed or directed at the person's or entity's last known home office or principal place of business. The secretary of state shall keep a record of the notices, orders, pleadings, and other process served on the secretary of state.

(f) A plaintiff or complainant is not entitled to a judgment or determination by default in any court or administrative proceeding in which a notice, order, pleading, or other process in proceedings is served under this section earlier than the 30th day after the date the copy of the service is mailed to the defendant.

Source Note: The provisions of this §7.1411 adopted to be effective August 11, 1989, 14 TexReg 3690.