State RegulationsTX specificDifficulty 1/5
What determines which kinds of insurance a certificated insurer may write in Texas?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
TIC 801.052 requires that the certificate of authority state the specific kinds of insurance authorized under the certificate, and it is that certificate which authorizes the insurer to engage in the business of insurance. Writing outside the authorized kinds is unauthorized insurance and exposes the insurer to department enforcement.
Why the other options are wrong
- B) A board resolution cannot expand the authority the department granted in the certificate.
- C) Agent licenses define what the individual may sell, not what the insurer is authorized to write.
- D) Admission in another state does not expand the insurer's authority in Texas.
Memory hook
The certificate is the insurer's permission slip - read the lines.