(a) An attorney in fact commits an offense if the attorney in fact:
(1) exchanges a reciprocal or interinsurance contract without first complying with the law governing the contract; or
(2) directly or indirectly solicits or negotiates an application for the contract without first complying with the law governing the contract.
(b) Subsection (a) does not apply to an action taken by an attorney in fact for the purpose of applying for a certificate of authority from the commissioner as provided by this chapter.
(c) An offense under this section is punishable by a fine of not less than $100 or more than $1,000.