Cooperation of officers, owners, and employees.

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  • (1) As used in this section:
    • (a) "Cooperate" includes to:
      • (i) reply promptly in writing to an inquiry from the commissioner or receiver requesting a reply; and
      • (ii) promptly make available to the commissioner or receiver any record, account, information, or property:
        • (A) of or pertaining to the insurer; and
        • (B) in the person's possession, custody, or control.
    • (b) "Person" includes a person who exercises control directly or indirectly over activities of the insurer through:
      • (i) a holding company; or
      • (ii) other affiliate of the insurer.
  • (2) The following shall cooperate with the commissioner or receiver in a proceeding under this chapter or an investigation preliminary to a proceeding under this chapter:
    • (a) a present or former officer, manager, director, trustee, owner, or employee of an insurer;
    • (b) a present or former agent of an insurer; or
    • (c) a person with authority over or in charge of any segment of the insurer's affairs.
  • (3) A person may not obstruct or interfere with the commissioner or receiver in the conduct of:
    • (a) a delinquency proceeding; or
    • (b) an investigation preliminary or incidental to a delinquency proceeding.
  • (4) This section may not be construed to abridge otherwise existing legal rights, including the right to resist:
    • (a) a petition for liquidation or other delinquency proceeding; or
    • (b) other orders.
  • (5)
    • (a) A person described in Subsection (5)(b) is:
      • (i) guilty of a class B misdemeanor, except that the fine may exceed $1,000 but may not exceed $10,000; or
      • (ii) after a hearing, subject to:
        • (A) the commissioner imposing a civil penalty that may not exceed $10,000;
        • (B) the revocation or suspension of an insurance license issued by the commissioner; or
        • (C) a combination of Subsections (5)(a)(ii)(A) and (B).
    • (b) This Subsection (5) applies to:
      • (i) a person described in Subsection (2) who fails to cooperate with the commissioner or receiver;
      • (ii) a person who obstructs or interferes with the commissioner or receiver in the conduct of a delinquency proceeding or an investigation preliminary or incidental to a delinquency proceeding; or
      • (iii) a person who violates an order validly issued under this chapter.




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