CHAPTER 804. SERVICE OF PROCESS - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE A. GENERAL PROVISIONS APPLICABLE TO INSURERS AND RELATED

ENTITIES

CHAPTER 804. SERVICE OF PROCESS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 804.001. DEFINITION. In this chapter, "process" means

legal process, including a demand or notice required or permitted

by law.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.002. RULES. The commissioner may adopt rules essential

for the effective implementation of this chapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.003. FEES. A fee collected under this chapter shall be

deposited to the credit of the Texas Department of Insurance

operating account for use by the department. The department shall

use the money for payment of salaries and other expenses arising

from the:

(1) examination of insurance companies;

(2) licensure of insurance companies; and

(3) investigation of violations of the insurance laws of this

state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER B. PERSONS AUTHORIZED TO RECEIVE SERVICE OF PROCESS

Sec. 804.101. DOMESTIC COMPANY. (a) In this section:

(1) "Domestic company" means a company that is domiciled in and

authorized to engage in the business of insurance in this state.

(2) "Company" means:

(A) an insurance company, including:

(i) a casualty insurance company;

(ii) a county mutual insurance company;

(iii) an exempt association under Section 887.102;

(iv) a farm mutual insurance company;

(v) a fire insurance company;

(vi) a fraternal benefit society;

(vii) a life insurance company;

(viii) a Lloyd's plan;

(ix) a mutual assessment company;

(x) a mutual insurance company other than a mutual life

insurance company;

(xi) a reciprocal exchange;

(xii) a risk retention group;

(xiii) a stipulated premium insurance company;

(xiv) a title insurance company; and

(xv) a carrier providing job protection insurance;

(B) a group hospital service corporation;

(C) a health maintenance organization;

(D) a prepaid legal services corporation; or

(E) any other company engaged in the business of insurance as a

principal.

(b) A domestic company may be served with process by:

(1) serving the president, an active vice president, secretary,

or attorney in fact at the home office or principal place of

business of the company; or

(2) leaving a copy of the process at the home office or

principal business office of the company during regular business

hours.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.102. DOMESTIC COMPANY THAT MAINTAINS PRINCIPAL OFFICES

OR BOOKS, RECORDS, AND ACCOUNTS OUT OF STATE. (a) In this

section, "domestic company" has the meaning assigned by Section

803.001.

(b) As a condition of being authorized to engage in the business

of insurance in this state, a domestic company that under Chapter

803 has moved its principal offices and any part of its books,

records, and accounts outside this state and the controlling

person of an affiliated insurance holding company system must

appoint and maintain as agent for service of process a person in

this state on whom a judicial or administrative process may be

served.

(c) If a domestic company does not appoint or maintain a person

in this state as agent for service of process or the agent cannot

with reasonable diligence be found, the commissioner may accept

service of process and notify the company in the manner provided

by Subchapter C.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.103. AUTHORIZED ALIEN OR FOREIGN COMPANY. (a) In this

section, "company" means:

(1) an insurance company, including a:

(A) fire, casualty, or fire and casualty insurance company;

(B) fraternal benefit society;

(C) life insurance company, including a mutual or nonprofit life

insurance company;

(D) Lloyd's plan;

(E) Mexican casualty insurance company;

(F) mutual fire, mutual casualty, or mutual fire and casualty

insurance company;

(G) reciprocal exchange;

(H) risk retention group; and

(I) title insurance company;

(2) a health maintenance organization; and

(3) any other insurance company, regardless of its type or

category, authorized to engage in the business of insurance in

this state.

(b) As a condition to being issued a certificate of authority to

engage in the business of insurance in this state, an alien or

foreign company must appoint a person in this state as agent for

service of process on whom any process to be served on the

company may be served.

(c) The commissioner is an alien or foreign company's agent on

whom process may be served as provided by Subchapter C if the:

(1) company fails to appoint or maintain an agent under

Subsection (b);

(2) agent appointed under Subsection (b) cannot with reasonable

diligence be found; or

(3) company's certificate of authority is revoked.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.104. RISK RETENTION GROUP NOT CHARTERED IN THIS STATE.

A risk retention group that is not chartered but that is

registered in this state under Section 2201.152, must designate

the commissioner as its agent for service of process and receipt

of legal documents.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2E.003, eff. April 1, 2009.

Sec. 804.105. PERSON IN RECEIVERSHIP. (a) Service of process

with respect to an individual, insurer, or other entity for which

a court has appointed the liquidator as receiver must be made

only on the receiver.

(b) If Subsection (a) applies, service on the commissioner or

the secretary of state has no effect.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.106. ELIGIBLE SURPLUS LINES INSURER; POLICY REQUIREMENT

FOR INSURER AND AGENT. (a) Each surplus lines insurer that

assumes a surplus lines risk under Chapter 981 is subject to this

section.

(b) Any act of engaging in the business of insurance by an

eligible surplus lines insurer:

(1) constitutes the irrevocable appointment of the secretary of

state by that insurer as agent for service of process arising

from the insurer's engaging in the business of insurance in this

state, other than service of process for an action or proceeding

by the department or state; and

(2) signifies the insurer's agreement that service under this

subsection has the same effect as personal service on the insurer

or the insurer's successor in interest.

(c) An appointment under Subsection (b)(1) is binding on the

eligible surplus lines insurer and the insurer's successor in

interest.

(d) A policy issued by an eligible surplus lines insurer or a

certificate of insurance issued by the surplus lines agent must

contain a provision stating the substance of this section and

designating the person to whom the commissioner is to mail

process. The plaintiff shall supply this address in any citation

served under this section.

(e) This section is in addition to any other method provided by

law for service of process on a surplus lines insurer, including

the method provided by Subchapter C.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.107. UNAUTHORIZED PERSON OR INSURER. (a) In this

section, "personal representative" includes an executor or

administrator.

(b) Any act of engaging in the business of insurance as provided

by Subchapter B, Chapter 101, by an unauthorized person or

insurer:

(1) constitutes the irrevocable appointment of the commissioner

by that person or insurer as agent for service of process arising

from the person's or insurer's engaging in the business of

insurance in this state, other than service of process for an

action or proceeding by the department or state;

(2) constitutes the irrevocable appointment of the secretary of

state by that person or insurer as agent for service of process

for an action or proceeding described by Subsection (c) and

arising from the person's or insurer's engaging in the business

of insurance in this state; and

(3) signifies the agreement of the person or insurer that

process served under this subsection and Subsection (d) has the

same effect as personal service in this state on that person or

insurer or the personal representative of that person or insurer

or if a corporation, the corporation's successor in interest.

(c) The process may be served on the secretary of state only in

an action or proceeding brought:

(1) in court by the department or the state against an

unauthorized person or insurer; or

(2) before the department by a process against the unauthorized

person or insurer.

(d) Service of process on an unauthorized person or insurer may

be served on a person in this state that engages, on the behalf

of the unauthorized person or insurer, in an act of engaging in

the business of insurance in this state as provided by Subchapter

B, Chapter 101.

(e) In an action or proceeding in which process is served under

Subsection (b) or (d), a plaintiff or complainant is not entitled

to a default judgment or determination before the 30th day after

the date on which the copy of the process is mailed to the

defendant.

(f) This section does not apply to an entity that was an

eligible surplus lines insurer under Chapter 981 on the date on

which the applicable coverage was issued.

(g) This section does not limit or diminish the right to serve

process on a person or insurer in any other manner provided by

law.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.108. INSURANCE HOLDING COMPANY SYSTEM LAW. A person,

as that term is defined by Section 823.002, that violates Chapter

823 is considered to have appointed the commissioner as agent for

service of process on the person for an action or proceeding

arising from a violation of that chapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER C. PROCEDURES RELATING TO SERVICE OF PROCESS ON

COMMISSIONER

Sec. 804.201. PROCEDURE FOR SERVING COMMISSIONER. (a) Process

served by serving the commissioner under this chapter must be

directed to the defendant and include:

(1) for an unauthorized person or insurer, the name and address

of the person or insurer to be served;

(2) for a risk retention group, the name and address of the

group to be served;

(3) for a surplus lines insurer, the name and address of the

insurer to be served;

(4) for an unincorporated association, trust, or other

organization formed under Chapter 1505, the name and address of

the association, trust, or organization; or

(5) for an authorized company, the name and address of the

company as it appears in the department records.

(b) Process may be served on the commissioner:

(1) personally by a disinterested person who is at least 18

years of age leaving two copies of the process at the office of

the department during regular business hours with:

(A) the commissioner; or

(B) an appointee of the commissioner authorized to receive

process; or

(2) by certified or registered mail.

(c) A fee not to exceed $50, payable by check or money order to

the department, must accompany each process served on the

commissioner.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2E.004, eff. April 1, 2009.

Sec. 804.202. EFFECT OF SERVICE ON COMMISSIONER. Service on the

commissioner acting as agent for service of process is service on

the principal.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.203. MAILING PROCESS; CERTIFICATE. (a) The

commissioner shall immediately send by registered or certified

mail, return receipt requested, one copy of process served on the

commissioner under Section 804.201 to:

(1) the defendant at the address supplied in the process as

provided by Sections 804.201(a)(1) through (4); or

(2) if Section 804.201(a)(5) applies, the home office or

principal business office of the authorized company, as indicated

in the department records.

(b) The commissioner shall send by registered or certified mail,

return receipt requested, copies of process served under Section

804.108 to the last known address of the person.

(c) On receiving the return receipt for certified or registered

mail, the commissioner shall issue a certificate showing the

service and proof of delivery by a return receipt to the

plaintiff and clerk of the court or agency where the proceeding

is pending.

(d) The commissioner shall provide on request the certificate

described by Subsection (c). The commissioner may charge a fee

not to exceed $10 for the certificate.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.204. RECORD. The commissioner shall keep a record of:

(1) each process served on the commissioner under this chapter;

and

(2) the action taken by the commissioner regarding the process.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER D. PROCEDURES RELATING TO SERVICE OF PROCESS ON

SECRETARY OF STATE

Sec. 804.301. PROCEDURE FOR SERVING SECRETARY OF STATE. Process

served by serving the secretary of state under Section 804.107

must be served by leaving two copies of the process at the office

of the secretary of state during regular business hours with:

(1) the secretary of state; or

(2) an appointee of the secretary of state authorized to receive

service.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.302. MAILING PROCESS. The secretary of state shall

mail one copy of process in the proceeding served on the

secretary of state under Section 804.301 to the defendant in a

court proceeding or to whom the process in an administrative

proceeding is addressed or directed, at the person's or entity's

last known home office or principal place of business.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 804.303. RECORD. The secretary of state shall keep a

record of each process served on the secretary of state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.