Section 21.301 - Performance Standards for Designated Statistical Agent(a) Definitions. The following words and terms when used in this section have the following meanings unless the context clearly indicates otherwise. (1) Agreed upon standards of performance--A set of standards of performance for each statistical agent which is negotiated and agreed upon by the statistical agent affected and the department. For statistical agents already designated as of the effective date of this section, the standards of performance must be agreed upon within eight months of the effective date of this section. For statistical agents designated after the effective date of this section, the standards of performance must be agreed upon prior to the effective date of the statistical agent's designation.(2) Commissioner--Commissioner of Insurance of the State of Texas.(3) Department--Texas Department of Insurance.(4) Designated statistical agent--An organization duly designated by or contracted with the Commissioner to gather insurance data from insurers according to a statistical plan.(5) Statistical plan--A document promulgated by the Commissioner that specifies the information to be reported, the insurers who must report the information, and the procedures and format for the information to be reported to the designated statistical agent.(b) Each designated statistical agent must comply with the agreed upon standards of performance.(c) If, after notice and the opportunity for a hearing, the Commissioner determines that a designated statistical agent has failed to comply with the agreed upon standards of performance, the Commissioner may impose sanctions against the designated statistical agent under Insurance Code Chapter 82, including but not limited to an administrative monetary penalty under Insurance Code Chapter 84.(d) In determining the amount of the administrative monetary penalty, the Commissioner will consider the following factors described in this subsection. (1) The seriousness of the noncompliance, including the nature, circumstances, extent, and gravity of the noncompliance.(2) The hazard or potential hazard to the health safety, or economic welfare of the public created by the noncompliance.(3) The economic harm to the public's interests or confidences caused by the noncompliance.(4) The history of previous noncompliance with performance standards by the designated statistical agent.(5) The amount necessary to deter future noncompliance.(6) The designated statistical agent's efforts to correct the noncompliance.(7) Whether the designated statistical agent intentionally or unintentionally failed to comply with the agreed upon standards of performance.(8) Any other consideration that the Commissioner may deem appropriate.(e) The amount of the administrative monetary penalty may not exceed $25,000 for each act of noncompliance.(f) The department reserves the right to assert any and all other rights it may have against the statistical agents or other related parties, including its right to terminate the designation of a statistical agent, if appropriate.28 Tex. Admin. Code § 21.301
The provisions of this §21.301 adopted to be effective March 9, 1998, 23 TexReg 2295; Amended by Texas Register, Volume 46, Number 44, October 29, 2021, TexReg 7414, eff. 11/7/2021