28 Tex. Admin. Code § 21.901 - Prohibition Against Solicitation or Acceptance of Power of Attorney
(a) Scope and application. This section
applies to any person required to be licensed as an agent pursuant to the
provisions of the Insurance Code or other insurance law of this state. For
purposes of this section, "person" means both natural persons and business
association entities.
(b)
Prohibition. No person subject to the provisions of this section is permitted,
directly or indirectly, to require, solicit or accept any power of attorney to
act as attorney-in-fact for any applicant for any insurance coverage in this
state for purposes of placing, procuring, instituting, maintaining, canceling
or nonrenewing any insurance coverage, or for any other act in connection with
the placement or institution of such insurance coverage.
(c) Exceptions. This section does not apply
to the situations described in paragraphs (1) and (2) of this subsection, as
follow:
(1) insurance activities for which
the Insurance Code or other insurance law of this state expressly authorizes a
person to conduct such insurance activities as an attorney-in-fact pursuant to
a power of attorney; or
(2)
instances in which a person required to be licensed as an agent under the
Insurance Code is appointed attorney-in-fact by a relative or household member
of such person for purposes which include placing personal lines insurance
coverages for such relative or household member.
(d) Premium finance company provisions. The
provisions of this section do not prohibit any person subject to the provisions
of this section from accepting applications for premium financing on premium
financing agreement forms that include a power of attorney in favor of the
premium financing company for purposes of canceling a financed insurance
contract, so long as the power-of-attorney provisions comply with statutory
provisions of Insurance Code Chapter 651, concerning the financing of insurance
premiums.
(e) Declaration of unfair
practice. The failure to comply with the provisions of this section constitutes
unfair competition and unfair practices according to Insurance Code Chapter 541
and is subject to the provisions of that chapter.
Notes
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