State RegulationsTX specificDifficulty 2/5
TDI opens an examination of a Texas-licensed agent's business. Under TIC 4001.254-255, what is the agent's obligation regarding records?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 4001.254-255 a licensed agent must keep records of the business transacted and make them available to the Commissioner for examination; that obligation is the practical means by which TDI verifies compliance with the Insurance Code. An agent who cannot produce records not only impedes the examination but commits a separate violation supporting sanctions, so records must be organized and retrievable rather than held informally.
Why the other options are wrong
- B) Agents have their own records obligation, which is not discharged by the insurer's files.
- C) The records obligation covers the business transacted, not only files that produced a claim.
- D) TDI's examination authority does not depend on first obtaining a court subpoena.
Memory hook
If TDI asks, the file must be there.