Under TIC 83.051, when may the Commissioner of Insurance issue a cease and desist order?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 83.051, the Commissioner may issue a cease and desist order whenever it appears that a person is engaging in, has engaged in, or is about to engage in an act or practice that violates the Insurance Code, a department rule, or a department order. The trigger is the apparent violation itself, not a completed adjudication, and the order may issue without a prior hearing because the recipient is given the right to request one afterward. Practically, TDI does not have to wait for a consumer to suffer a measurable loss: threatened or anticipated conduct is enough, which is why an agent or insurer can be ordered to stop a sales practice before a single policy is placed.
Why the other options are wrong
- A) No prior contested case hearing is required for the order to issue; the statute preserves the recipient's right to request a hearing after the order is issued, and the order becomes final only if that right is not exercised.
- B) The authority reaches any person, including unlicensed individuals and unauthorized insurers, so holding a department license is not a condition of being subject to an order.
- D) A criminal conviction, or any Attorney General action, is not a prerequisite; a cease and desist order is an administrative remedy the Commissioner exercises directly.
Memory hook
About to do it, doing it, or already did it — TIC 83.051 reaches all three.