State RegulationsTX specificDifficulty 1/5
The Commissioner finds that a licensed Texas agent violated a provision of the Insurance Code. Under TIC 82.051-.056, what sanctions are available?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 82.051, the Commissioner may cancel or revoke an authorization, and under TIC 82.052 the Commissioner may additionally suspend the authorization for up to one year, order the person to cease and desist, impose an administrative penalty under Chapter 84, order restitution under TIC 82.053, or impose any combination of those sanctions. Practical consequence: a single violation can produce license discipline, a monetary penalty, and a conduct order at the same time, because they are cumulative rather than alternatives.
Why the other options are wrong
- A) The sanctions are cumulative, and the statute permits any combination, so a penalty and a suspension may be imposed together.
- B) Revocation is not exclusive; Chapter 82 expressly allows other sanctions in addition to cancellation or revocation.
- D) Monetary sanctions under Chapters 82 and 84 are imposed by the Commissioner administratively; a complainant need not go to court to obtain them.
Memory hook
Chapter 82 sanctions stack: suspend, fine, cease and desist, restitution.