Disciplinary action may be taken against a captive insurance company, captive insurance manager, or other person if, after notice and opportunity for hearing, it is determined that the captive insurance company, captive insurance manager, or other person has violated the Insurance Code, or other law subject to department enforcement, or regulation by the department, including:

1. (1) a captive insurance company that violates §6.501 of this title (relating to Workers' Compensation); and
2. (2) an insurance carrier, as defined by Labor Code §401.011, if it allows an employer, other than a certified self-insured employer, to dictate the methods by which and the terms on which a claim is handled and settled in violation of statute.

Source Note:The provisions of this §6.701 adopted to be effective April 27, 2014, 39 TexReg 3232.