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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 7CORPORATE AND FINANCIAL REGULATION
SUBCHAPTER NSERVICES OF PROCESS
RULE §7.1410Service of Process on Commissioner on Behalf of Unauthorized Persons or Insurers

(a) Any act of doing an insurance business as provided by the Insurance Code, Article 1.14-1, §2, by an unauthorized person or insurer is equivalent to and constitutes an irrevocable appointment by that person or insurer of the commissioner to be the lawful attorney for service of that person or insurer. This irrevocable appointment of the commissioner as attorney for service is binding on that person or insurer, on the executor, administrator, or personal representative of that person or insurer, and, if that person or insurer is a corporation, on any successor in interest to that person or insurer. The commissioner may be served any process, notice, or demand arising out of doing an insurance business in this state by that person or insurer, except in an action, suit, or proceeding by the State Board of Insurance or by the State of Texas.

(b) Any act of doing an insurance business as provided by the Insurance Code, Article 1.14-1, §2, by an unauthorized person or insurer signifies the persons's or insurer's agreement that legal process served under this section has the same legal force and validity as personal service of process in this state on that person or insurer or on that person's or insurer's executor, administrator, or personal representative, or, if a corporation, on its successor in interest.

(c) In addition to service under §7.1404 of this title (relating to Service of Process Procedure for Domestic Insurers Approved To Operate under the Insurance Code, Article 1.28, Foreign and Alien Insurance Companies, Risk Retention Groups, Purchasing Groups, Third Party Administrators, Unauthorized Persons or Insurers, Organizations Formed Under the Insurance Code, Article 3.71, and Surplus Lines Insurers) and subsection (a) of this section, service of process, notice, or demand on an unauthorized person or insurer is valid if served on any person in this state who on behalf of that unauthorized person or insurer is doing any act of an insurance business as provided by the Insurance Code, Article 1.14-1, §2.

(d) A plaintiff or complainant is not entitled to a judgment by default in any action, suit, or proceeding in which process, notice, or demand is served under this section earlier than the 30th day after the date on which the copy of the process, notice, or demand served is mailed to the defendant.

(e) The courts of this state have jurisdiction over any person defined by the Insurance Code, Article 21.49-1, §2(i), who is not resident, domiciled, or authorized to do business in this state and who files a statement with the commissioner under the Insurance Code, Article 21.49-1, and over actions involving any person defined by the Insurance Code, Article 21.49-1, §2(i), arising out of violations of that article. Any person defined by the Insurance Code, Article 21.49-1, §2(i), is considered to have performed acts equivalent to and constituting an appointment of the commissioner by that person to be that person's lawful attorney on whom process in any action, suit, or proceeding arising out of violations of the Insurance Code, Article 21.49-1, may be served. Copies of process shall be served on the commissioner and transmitted by the commissioner by certified or registered mail to that person at that person's last known address. Procedures and fees for service of process are governed by §7.1404 of this title (relating to Service of Process Procedure for Domestic Insurers Approved To Operate under the Insurance Code, Article 1.28, Foreign and Alien Insurance Companies, Risk Retention Groups, Purchasing Groups, Third Party Administrators, Unauthorized Persons or Insurers, Organizations Formed under the Insurance Code, Article 3.71, and Surplus Lines Insurers).


Source Note: The provisions of this §7.1410 adopted to be effective August 11, 1989, 14 TexReg 3690.

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