Texas Department of Insurance Licensing and Enforcement class 1

If the Texas insurance commissioner asks an insurer or producer for information about its financial condition or any matter involving its business transactions, the insurer or agent must reply in writing within:

10 days Because TDI may ask an insurer or agent for information about its financial condition or any matter involving its business transactions at any time. The insurer or agent is required to reply in writing within ten days.

Before revoking an insurer's certificate of authority in Texas, the TDI commissioner must first give the insurer notice of at least:

10 days Becouse

It is illegal for an insurance company to transact insurance business in Texas without:

a certificate of authority Because It is illegal for an insurer to transact insurance business in Texas without a certificate of authority, which authorizes the insurer to engage in the business of insurance and must state the specific kinds of insurance it is authorized to sell.

Shelley is an agent and has been misrepresenting the terms of the policies that she sells in order to boost her commissions. When the Texas Department of Insurance discovers her actions, it can do all of the following EXCEPT:

begin criminal proceedings against her Because If the Texas Department of Insurance discovers that Shelley is engaging in fraudulent acts, it can refer the case for criminal prosecution to local district attorneys and United States attorneys.

The Texas insurance commissioner must examine the business affairs and financial condition of every authorized insurer in the state as often as necessary, but at least once every:

five years Because TDI will examine the business affairs and financial condition of every authorized insurer in the state as often as necessary, but at least once every five years.

To a consumer in Texas, an insurance company that is headquartered in Missouri but admitted to do business in Texas is

foreign insurer Because To Texas consumers, a domestic insurer is one that is formed under the laws of Texas, a foreign insurer is formed under the laws of another state, and an alien insurer is formed under the laws of a country other than the United States.

The Texas Department of Insurance regulates the state's insurance industry. Which of the following is NOT one of its responsibilities?

imposing civil and criminal penalties on producers who violate the state's insurance laws Because

TDI does all of the following EXCEPT:

recommends insurance products to the public Because TDI enforces insurance laws passed by the legislature and develops rules and regulations to aid in that enforcement. However, TDI does not serve as an agent or recommend any sort of product to the public.

A producer who detects inconsistencies that lead her to suspect the claimant is making a false claim for benefits is required to:

report her suspicions to TDI within 30 days Because If a producer believes or suspects that a fraudulent insurance act has been or is about to be committed, he or she must report it in writing to the TDI insurance fraud unit within 30 days of making this determination.

Beth is a senior vice president at Acme Insurers. While reviewing some health insurance claims, she discovers that one of the company's agents has been filing illegal claims for financial gain. After discovering the fraudulent insurance act, Beth must:

report the information in writing to the Texas Department of Insurance within 30 days Because Beth must report her findings in writing to the Texas Department of Insurance or an authorized governmental agency within 30 days.