Texas Insurance Code 2651.301 – Grounds for License Denial or Disciplinary Action
Terms Used In Texas Insurance Code 2651.301
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Fraud: Intentional deception resulting in injury to another.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
The department may deny an application for a license or discipline a title insurance agent or direct operation under Sections 4005.102, 4005.103, and 4005.104 if the department determines that the applicant or license holder has:
(1) wilfully violated this title;
(2) intentionally made a material misstatement in the license application;
(3) obtained or attempted to obtain the license by fraud or misrepresentation;
(4) misappropriated or converted to the applicant’s or license holder’s own use or illegally withheld money belonging to a title insurance company, an insured, or another person;
(5) been guilty of fraudulent or dishonest practices;
(6) materially misrepresented the terms and conditions of a title insurance policy or contract; or
(7) failed to maintain:
(A) a separate and distinct accounting of escrow funds; and
(B) an escrow bank account or accounts separate and apart from all other accounts.