State RegulationsTX specificDifficulty 1/5
When the Texas Department of Insurance examines a carrier under TIC 401.051, what must that examination cover?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 401.051(b) requires the department or an examiner appointed by the department to examine the carrier's financial condition, its ability to meet the carrier's liabilities, and its compliance with the laws of this state that affect the conduct of the carrier's business. The examination is therefore a solvency and compliance review, not a review of advertising or of individual complaints.
Why the other options are wrong
- A) Claim-paying history is only part of the picture; the statute requires a financial condition and compliance review.
- C) Marketing and advertising materials are not the subject of the examination required by TIC 401.051.
- D) Individual complaint files are not the measure of the examination the statute directs.
Memory hook
Examine solvency, liability capacity, compliance.