Texas Insurance Code 1251.004 – Certain Payments by Insurers Prohibited
Current as of: 2024 | Check for updates
|
Other versions
(a) Except as reimbursement for the cost of services that otherwise would have been provided by the insurer, an insurer may not pay to any individual, firm, corporation, or group entity a fee or allowance for services related to:
(1) a group accident and health insurance policy; or
(2) a blanket accident and health insurance policy.
(b) Subsection (a) does not limit an insurer’s right to:
(1) pay dividends;
(2) return a premium to a group or a combination of groups;
(3) provide for a rate stabilization fund with combinations of groups; or
(4) pay compensation, including a commission, to a licensed agent.
Terms Used In Texas Insurance Code 1251.004
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.