Tex. Insurance Code § 843.406
This is the official text of Tex. Insurance Code § 843.406, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 843.406. HAZARDOUS FINANCIAL CONDITION.
Official statutory text
(a) If the financial condition of a health maintenance organization indicates that the continued operation of the health maintenance organization could be hazardous to its enrollees or creditors or the public, the commissioner may, after notice and opportunity for hearing:
(1) suspend or revoke the health maintenance organization's certificate of authority; or
(2) order the health maintenance organization to take action reasonably necessary to correct the condition, including by:
(A) reducing by reinsurance the total amount of present and potential liability for benefits;
(B) reducing the volume of new business being accepted;
(C) reducing expenses by specified methods;
(D) suspending or limiting for a period the writing of new business; or
(E) increasing the health maintenance organization's capital and surplus by contribution.
(b) In a manner consistent with the purposes of this section, the commissioner by rule may establish:
(1) uniform standards and criteria for early warning that the continued operation of a health maintenance organization could be hazardous to the health maintenance organization's enrollees or creditors or the public; and
(2) standards for evaluating the financial condition of a health maintenance organization.
(1) suspend or revoke the health maintenance organization's certificate of authority; or
(2) order the health maintenance organization to take action reasonably necessary to correct the condition, including by:
(A) reducing by reinsurance the total amount of present and potential liability for benefits;
(B) reducing the volume of new business being accepted;
(C) reducing expenses by specified methods;
(D) suspending or limiting for a period the writing of new business; or
(E) increasing the health maintenance organization's capital and surplus by contribution.
(b) In a manner consistent with the purposes of this section, the commissioner by rule may establish:
(1) uniform standards and criteria for early warning that the continued operation of a health maintenance organization could be hazardous to the health maintenance organization's enrollees or creditors or the public; and
(2) standards for evaluating the financial condition of a health maintenance organization.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.