Texas Insurance Code 2551.351 – Forfeiture of Right to Engage in Business
(a) A foreign or domestic corporation forfeits any right to engage in business in this state if the corporation:
(1) issues any form of title insurance policy, or any other adopted or approved form, on real property in this state other than a form prescribed by the department;
(2) charges any premium rate on an owner, mortgagee, or other title insurance policy, or on any other adopted or approved form, on real property in this state other than a premium rate prescribed by the commissioner; or
(3) otherwise engages in the business of title insurance in relation to real property in this state on a form or for a premium rate not prescribed by the department or commissioner.
(b) This section does not apply to a premium rate charged in connection with a reinsurance transaction between two or more title insurance companies, provided that the reinsurance contract complies with Subchapter G.
Terms Used In Texas Insurance Code 2551.351
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.