CANCELLATION OF COVERAGE BY COMPANY; IMPOSITION OF ADMINISTRATIVE PENALTY

(a) If a policyholder described by Section 2054.509(d) does not elect to cancel coverage as provided by that section: (1) the company may cancel the coverage; or (2) the commissioner of workers' compensation may impose an administrative penalty on the policyholder. (b) The amount of an administrative penalty under Subsection (a)(2) may not exceed $5,000. Each day of noncompliance constitutes a separate violation. (c) In imposing an administrative penalty, the commissioner of workers' compensation may consider any matter that justice may require and shall consider: (1) the seriousness of the violation, including the nature, circumstances, consequences, extent, and gravity of the prohibited act; (2) the history and extent of previous administrative violations; (3) the demonstrated good faith of the violator, including actions taken to rectify the consequences of the prohibited act; (4) any economic benefit resulting from the prohibited act; and (5) the penalty necessary to deter future violations. (d) A penalty collected under this section: (1) must be deposited in the general revenue fund; and (2) may be appropriated to the division to offset the costs of implementing and administering this subchapter.