State RegulationsTX specificDifficulty 2/5
A Texas agent cannot produce the transaction records the department asks for during an examination. Under TIC 4001.254-255, what is the most likely result?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 4001.254-255, maintaining and producing records of insurance transactions is a legal duty of the licensee rather than a suggestion. Failing to keep the records or to make them available to the department is itself a violation and exposes the agent to the sanctions available under TIC 4005.101-.102, including suspension or revocation of the license. In practice an incomplete file also makes it far harder for the agent to defend a consumer complaint, because the agent cannot document what was said or delivered.
Why the other options are wrong
- B) The duty is personal to the licensee; the department proceeds against the agent rather than the appointing insurer, and there is no automatic renewal.
- C) The obligation is to have the records when the department asks; producing them later at renewal does not cure the violation.
- D) Recordkeeping is mandatory under the statute, so a missing file is not merely a lapse of recommended practice.
Memory hook
No records means no defense: the file must exist when the examiner calls.