Section 2054.510 - Cancellation of Coverage By Company; Imposition of Administrative Penalty(a) If a policyholder described by Section 2054.509(d) does not elect to cancel coverage as provided by that section:(1) the company may cancel the coverage; or(2) the commissioner of workers' compensation may impose an administrative penalty on the policyholder.(b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation.(c) In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider:(1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act;(2) the history and extent of previous administrative violations;(3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act;(4) any economic benefit resulting from the prohibited act; and(5) the penalty necessary to deter future violations.(d) A penalty collected under this section: (1) must be deposited in the general revenue fund; and(2) may be appropriated to the division to offset the costs of implementing and administering this subchapter.Tex. Ins. Code § 2054.510
Amended By Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 3B.055(e), eff. 9/1/2007.Amended By Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 9.055(e), eff. 9/1/2007.Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. 4/1/2007.