(a) Commissioner's authority. Nothing in this section
limits the commissioner's authority under Insurance Code Chapters
404, Financial Condition; 406, Special Deposits Required Under Potentially
Hazardous Conditions; 441, Supervision and Conservatorship; or 443,
the Insurer Receivership Act.
(b) Limitation, suspension, or cancellation of certificate.
The commissioner will limit, suspend, or cancel an approved PEO's
certificate of approval if the commissioner finds that the approved
PEO or its plan or trust do not meet the requirements of applicable
Insurance Code provisions or this subchapter.
(c) Notice of limitation; commissioner's hearing. The
commissioner will issue a written notice to an approved PEO stating
the basis for a limitation under subsection (b) of this section. If
within 30 days of receiving a notice of limitation the approved PEO
submits a written request for review by the commissioner, the commissioner
will schedule a hearing under Insurance Code Chapter 40, at which
the approved PEO will be given an opportunity to show compliance with
this subchapter. Hearings described in this subchapter will be conducted
as required by Government Code Chapter 2001, concerning Administrative
Procedure; Insurance Code Chapter 40, concerning Duties of State Office
of Administrative Hearings and Commissioner in Certain Proceedings;
Rate Setting Proceedings; TDI's and State Office of Administrative
Hearing's rules of procedure; and any other applicable law and regulations.
(d) Notice of suspension or cancellation. The commissioner
will issue a written notice of suspension or of intent to cancel to
an approved PEO stating the basis for the suspension or cancellation
under subsection (b) of this section.
(e) Hearing request in contested case. An approved
PEO may submit a written request to the commissioner for a hearing
at the State Office of Administrative Hearings under Government Code
Chapter 2001, Administrative Procedure, within 30 days of receiving
notice that its certificate of approval:
(1) remains limited after a commissioner's hearing
under subsection (c) of this section,
(2) is suspended under subsection (d) of this section,
or
(3) will be canceled under subsection (d) of this section.
(f) At that hearing the approved PEO will be given
an opportunity to show compliance with this subchapter.
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