The Texas Department of Insurance (TDI) licenses and regulates insurance agents and adjustors for compliance with applicable rules and regulations. Having experienced legal counsel on your side when dealing with TDI can be significant in reaching a positive outcome in your case. Therefore, you should consult an insurance license defense attorney for help if you are facing a complaint before TDI.
Grounds for Disciplinary Proceedings by TDI
Unlike some other licensed professions, TDI does not have rules that identify specific types of violations that lead to disciplinary proceedings, except with respect to criminal offenses.
28 Tex. Ins. Code §1.502(d) states that TDI may revoke or suspend a license if it determines that the licensee, or any partner, officer, director, member, manager, or any other person who has the right to control the license holder, has been convicted of or placed on deferred adjudication for:
- An offense that directly relates to the duties and responsibilities of the licensed occupation;
- An offense listed in Code of Criminal Procedure Article 42A.054; or
- A sexually violent offense.
Criminal offenses that directly relate to the duties and responsibilities of an insurance agent include:
- Any offense for which fraud, dishonesty, or deceit is an essential element;
- Any criminal violation of the Texas Insurance Code or an offense pertaining to the financial industry or business of insurance under any state or federal law, including:
- A fraud offense;
- Money laundering;
- Insurance fraud;
- Healthcare fraud; or
- Engaging in the unauthorized business of insurance;
- Any felony involving moral turpitude or breach of fiduciary duty;
- Any offense with the essential elements of:
- A criminal solicitation offense;
- A criminal homicide offense;
- A kidnapping or unlawful restraint offense;
- An offense related to the smuggling of persons or the trafficking of persons;
- A sexual offense;
- An assaultive offense;
- An offense against the family;
- An arson or property damage offense;
- A robbery offense;
- A burglary offense;
- A theft offense;
- Online solicitation of a minor;
- A bribery or corrupt influence offense;
- A perjury or falsification offense;
- A stalking offense;
- An offense against public order and decency;
- A weapons offense;
- An intoxication assault or manslaughter offense;
- An organized crime offense; or
- An offense relating to the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance, a simulated controlled substance, a dangerous drug, or a volatile chemical;
- Any offense described by Code of Criminal Procedure Article 42A.054;
- A sexually violent offense;
- Any criminal attempt or conspiracy to commit any offense listed above; or
- Any offense under the laws of another state, federal law, the laws of a foreign country, or the Uniform Code of Military Justice if the offense contains elements that are substantially similar to the elements of an offense listed above.
Finally, TDI will revoke the license of incarcerated individuals following a felony conviction, felony community supervision revocation, revocation of parole, or revocation of mandatory supervision.
Investigating Complaints
When it receives a complaint, TDI will investigate whether a violation of an insurance law or regulation has occurred. TDI will notify the licensee if it finds evidence that they have committed some violation that falls within its jurisdiction. The licensee will have enough time to respond to the complaint.
Based on the investigation and the licensee’s response to the complaint, TDI may pursue disciplinary action against the licensee.
Typically, TDI will set an informal conference to attempt to resolve the complaint. If the parties cannot reach a mutually acceptable resolution of the complaint, the case may be referred to the State Office of Administrative Hearings (SOAH) for a hearing before an administrative law judge (ALJ). After holding a hearing, the ALJ will submit a proposal for decision (PFD) to TDI, which retains the final authority to determine the resolution of the disciplinary action. If the licensee disagrees with TDI’s decision, they can file a petition for judicial review in district court.
28 Tex. Ins. Code §1.1502 also provides that a licensee may raise an issue of disability and request probation before TDI holds any hearing to suspend, revoke, or cancel a license. To raise this issue, the licensee must give specific written notice as the law directs. Failure to give proper written notice can result in a hearing officer refusing to consider evidence about the licensee’s disability unless the licensee can show good cause for failure to give proper written notice by a preponderance of the evidence.
We Can Advocate on Your Behalf in Disciplinary Proceedings Before TDI
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The insurance license defense lawyers of Bertolino LLP are here to guide you throughout the disciplinary complaint process. No matter the allegations you may be facing, we can work to protect your interests and work to minimize the negative effects of a complaint on your license and career. Our goal is to help you resolve the allegations against you and maintain your professional license. Call us today at (512) 980-3751 to reach the offices of Bertolino LLP or contact us online.
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