INVESTIGATION AND DISCLOSURE

(a) If the commissioner has reason to believe that insurance has been effectuated by or for a person in this state with an unauthorized person or insurer, the commissioner shall in writing order the person to: (1) produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized persons or insurers; and (2) disclose to the commissioner: (A) the amount of insurance; (B) the name and address of each insurer; (C) the gross amount of premiums paid or to be paid; and (D) the name and address of each person assisting in the solicitation, negotiation, or effectuation of the insurance. (b) A person who fails to comply with a written order under Subsection (a) before the 31st day after the date of the order or who wilfully makes a disclosure that is untrue, deceptive, or misleading shall forfeit: (1) $1,000; and (2) an additional $1,000 for each day the person continues to fail to comply after expiration of the 30-day period. (c) This section does not apply to: (1) a transaction in this state that: (A) involves a policy that: (i) is lawfully solicited, negotiated, written, and delivered outside this state; and (ii) covers, at the time the policy is issued, only subjects of insurance that are not resident, located, or expressly to be performed in this state; and (B) takes place after the policy is issued; or (2) surplus lines insurance procured through eligible surplus lines insurers as defined by Section 981.002.