(a) An insurer or an insurer’s agent or sponsoring organization may not solicit or collect, in connection with an application for insurance or the issuance of a policy, a payment other than:
(1) a premium;
(2) a tax;
(3) a finance charge;
(4) a policy fee;
(5) an agent fee;
(6) a service fee, including a charge for costs described by § 4005.003;
(7) an inspection fee; or
(8) membership dues in a sponsoring organization.
(b) The commissioner by rule shall permit a sponsoring organization to solicit a voluntary contribution with a membership renewal solicitation if the membership renewal solicitation is separate from an insurance billing.

Terms Used In Texas Insurance Code 550.001

  • Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
  • Rule: includes regulation. See Texas Government Code 311.005
  • Statute: A law passed by a legislature.

(c) Except as otherwise provided by statute, an insurer may require that membership dues in its sponsoring organization be paid as a condition for issuance or renewal of an insurance policy.
(d) Criminal penalties for a violation of this section are the same as criminal penalties provided for a violation under Subchapter K, Chapter 823.

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