Texas Register, Volume 29, Number 5, Pages 727-1096, January 30, 2004 Page: 751
727-1096 p. ; 28 cm.View a full description of this periodical.
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(c) Original and renewal applications must be accompanied
by.
(1) an audit report and audited financial statements for the
company's most recent fiscal year;
(2) a certified statement, made by an actuary, describing the
company's reserves, if any;
(3) the required fees; and
(4) proof of one of the following forms of financial secu-
rity:
(A) a surety bond issued by an authorized surety;
(B) securities of the type eligible for deposit by an au-
thorized insurer in Texas;
(C) a deposit of cash or cash equivalents as provided in
Title 5, Texas Occupations Code, Chapter 953, Section 953.101;
(D) an irrevocable letter of credit issued by a qualified
financial institution; or
(E) another form of security acceptable to the Executive
Director.
(d) Falsification of information on an application is cause for
denial of the application and revocation of the registration.
57.22. Registration Requirements--Sales Representative.
(a) No person may sell or solicit legal service contracts to a
person on behalf of a company without first registering with the de-
partment.
(b) Registration is valid for one year from the date issued and
must be renewed annually.
(c) The required fee must accompany both original and re-
newal applications.
(d) Falsification of information on an application is cause for
denial of the application or revocation of the registration.
57.23. Registration Requirements--Administrator
(a) No person may act as an administrator on behalf of a com-
pany without first registering with the department.
(b) Registration is valid for one year from the date issued and
must be renewed annually.
(c) The required fee must accompany both original and re-
newal applications.
(d) Falsification of information on an application is cause for
denial of the application or revocation of the registration.
57.25. Registration Requirements--Renewal.
(a) A complete application for registration renewal must be
submitted on an approved Department form with all required fees.
(b) Non-receipt of a registration renewal notice from the De-
partment does not exempt a person from any requirements of this chap-
ter.
(c) A person shall not perform work requiring registration un-
der Title 5, Texas Occupations Code, Chapter 953 with an expired reg-
istration.
57.70. Responsibilities qf Registrants--General.
A registrant shall notify the Department in writing within thirty (30)
days of any change in the information set forth in the registrant's most
recent original and renewal application.57.71. Responsibilities of Registrants--Company
(a) A company must provide a receipt for or other written ev-
idence of the purchase of a legal service contract to a contract holder
within 45 days.
(b) A company must provide a copy of the legal service con-
tract to the contract holder within 45 days.
(c) A company must provide a copy of the terms of a group
legal service contract including the obligations and benefits of each
party as specified in Texas Occupations Code, Chapter 953, 953.156
within 45 days.
(d) A company must provide a receipt for or other written ev-
idence of the purchase of a group legal service contract to a contract
holder within 45 days.
(e) A company must include a statement substantially similar
to, "Legal service contract companies and their sales representatives
are regulated by the Texas Department of Licensing and Regulation.
You may contact the Department at P.O. Box 12157, Austin, TX 78711,
512-463-6599, 800-803-9202, or at ." in each legal service contract sold
or offered for sale in Texas.
57.72. Responsibilities of Registrant--Sales Representative.
A sales representative may only sell legal service contracts regulated
under Title 5, Texas Occupations Code, Chapter 953 and this Chapter
on behalf of a registered company.
57.80. Fees.
(a) All fees are non-refundable.
(b) The original and renewal registration fee for a company
shall be:
(1) $500 for a company that sells 0 to 1,000 legal service
contracts during the twelve (12) months preceding the date of the ap-
plication;
(2) $750 for a company that sells 1,001 to 2,500 legal ser-
vice contracts during the twelve (12) months preceding the date of the
application; and
(3) $1,000 for company that sells 2,501 or more legal ser-
vice contracts during the twelve (12) months preceding the date of the
application.
(c) For purposes of subsection (b) if a company that sold no
legal service contracts in this state in the preceding year previously sold
prepaid legal service contracts under article 5.13-1, Texas Insurance
Code, the company's registration fee shall be based on the number of
prepaid legal service contracts sold under the Texas Insurance Code in
the preceding year.
(d) Companies must also pay an annual premium tax replace-
ment fee. The premium tax replacement fee is equal to the difference
between an amount equal to 1.7% of the amount a company collects
for legal service contracts sold by the company in Texas in the current
year and the amount the company paid to the state in franchise taxes in
the same year.
(e) The original and renewal registration fee for a sales repre-
sentative is $50.
(f) The original and renewal registration fee for an administra-
tor is $50.
(g) A $25 fee shall be charged for duplicate or amended reg-
istration certificates.
(h) Late renewal fees for registrations issued under this chapter
are provided for in Title 16, section 60.83 of the Commission rules.PROPOSED RULES January 30, 2004 29 TexReg 751
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Texas. Secretary of State. Texas Register, Volume 29, Number 5, Pages 727-1096, January 30, 2004, periodical, January 30, 2004; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101101/m1/23/: accessed May 21, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.