(a) Scope and application. This section applies to any person required to be licensed as an agent pursuant to the provisions of the Insurance Code or other insurance law of this state. For purposes of this section, "person" means both natural persons and business association entities.     
      (b) Prohibition. No person subject to the provisions of this section is permitted, directly or indirectly, to require, solicit or accept any power of attorney to act as attorney-in-fact for any applicant for any insurance coverage in this state for purposes of placing, procuring, instituting, maintaining, canceling or nonrenewing any insurance coverage, or for any other act in connection with the placement or institution of such insurance coverage.     
      (c) Exceptions. This section does not apply to the situations described in paragraphs (1) and (2) of this subsection, as follow:      
        (1) insurance activities for which the Insurance Code or other insurance law of this state expressly authorizes a person to conduct such insurance activities as an attorney-in-fact pursuant to a power of attorney; or       
        (2) instances in which a person required to be licensed as an agent under the Insurance Code is appointed attorney-in-fact by a relative or household member of such person for purposes which include placing personal lines insurance coverages for such relative or household member.       
      (d) Premium finance company provisions. The provisions of this section do not prohibit any person subject to the provisions of this section from accepting applications for premium financing on premium financing agreement forms that include a power of attorney in favor of the premium financing company for purposes of canceling a financed insurance contract, so long as the power-of-attorney provisions comply with statutory provisions of Insurance Code Chapter 651, concerning the financing of insurance premiums.     
      (e) Declaration of unfair practice. The failure to comply with the provisions of this section constitutes unfair competition and unfair practices according to Insurance Code Chapter 541 and is subject to the provisions of that chapter.     
     Source Note:        The provisions of this §21.901 adopted to be effective August 29, 1996, 21 TexReg 7851; amended to be effective November 7, 2021, 46 TexReg 7408