    INSURANCE CODE
    TITLE 5. PROTECTION OF CONSUMER INTERESTS
    SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
    CHAPTER 543. PROHIBITED PRACTICES RELATED TO POLICY OR CERTIFICATE OF MEMBERSHIP
    SUBCHAPTER A. PROHIBITIONS
    Sec. 543.001.  MISREPRESENTATION PROHIBITED.  (a)  In this section, "life, health, or casualty insurer" includes a corporation operating on a cooperative or assessment plan, a mutual insurance company, a fraternal benefit society, and any other society or association authorized to issue an insurance policy in this state.(b)  A life, health, or casualty insurer, an officer, director, agent, or representative of that insurer, or any other person, corporation, or copartnership may not:(1)  issue, circulate, or cause or permit to be issued or circulated any statement, including an illustration or estimate, that misrepresents:(A)  the terms of a policy or certificate of membership issued by a life, health, or casualty insurer;(B)  other benefits or advantages provided by the policy or certificate;  or(C)  the dividends or share of surplus to be received on the policy or certificate;(2)  use a name or title of a policy, policy class, certificate of membership, or certificate class that misrepresents the policy, certificate, or class;  or(3)  make a misleading representation or incomplete comparison of a policy or certificate of membership to an insured or member for the purpose of inducing or tending to induce the insured or member to forfeit, surrender, or allow the lapse of the insurance or membership.(c)  The commissioner may adopt and enforce reasonable rules as provided by Subchapter I, Chapter 541, to accomplish the purposes of Subsection (b)(1) as those purposes relate to life insurance companies.
    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

    Sec. 543.002.  CONTRACT EXPRESSED IN POLICY ONLY.  An insurer or an agent of an insurer may not make an insurance contract or an agreement relating to an insurance contract other than as expressed in the policy issued in connection with the contract.
    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

    Sec. 543.004.  SHARING OF OR PARTICIPATION IN SPECIAL FUND PROHIBITED.  An insurer or an officer, agent, or representative of an insurer may not issue a policy that contains a special or board contract or similar provision by the terms of which the policy will share or participate in a special fund derived from a tax or a charge against any portion of the premium on another policy.
    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

    SUBCHAPTER B. ENFORCEMENT;  PENALTY
    Sec. 543.051.  SUSPENSION OR REVOCATION OF CERTIFICATE, CHARTER, PERMIT, OR LICENSE.  (a)  On a hearing, the commissioner may suspend or revoke the certificate, charter, permit, or license to engage in the business of insurance of A society, association, corporation, or person that violates Subchapter A.(b)  The commissioner must give 10 days' notice of the hearing by certified mail to the society, association, corporation, or person.
    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

    Sec. 543.052.  CRIMINAL PENALTY.  (a)  A person commits an offense if the person violates Subchapter A.(b)  An offense under this section is a Class A misdemeanor.(c)  The penalty provided by this section is in addition to any other penalty specifically provided by law.
    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.