(a) Except as provided by Subsection (b), the department or commissioner may not begin an action to impose a sanction, penalty, or fine, including an administrative penalty, against an insurer, agent, or other license holder who is subject to the jurisdiction of the department for conduct that is a violation of this code or another insurance law of this state after the earlier of:
(1) the fifth anniversary of the date on which the conduct that is a violation occurred; or
(2) the second anniversary of the earlier of:
(A) the date on which the conduct that is a violation is first discovered by the department; or
(B) the date on which the conduct that is a violation is made known to the department.
(b) The department or commissioner may not begin an action to impose a sanction, penalty, or fine, including an administrative penalty, against an insurer, agent, or other license holder who is subject to the jurisdiction of the department for conduct that is a violation of this code or another insurance law of this state and that involves fraud by the insurer, agent, or license holder after the fifth anniversary of the earlier of:
(1) the date on which the conduct that is a violation is first discovered by the department; or
(2) the date on which the conduct that is a violation is made known to the department.
(c) This section does not apply to conduct that is:
(1) a violation that is ongoing at the time the department seeks to impose the sanction, penalty, or fine;
(2) a violation of Subchapter A, Chapter 544, or Section 1702.103, as those provisions relate to discrimination on the basis of race or color, regardless of the time the conduct occurs; or
(3) a violation of Title 5, Labor Code.