State RegulationsTX specificDifficulty 1/5
Under TIC 31.001-.002 and 31.021-.022, what authority does the Commissioner of Insurance hold?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 31.001-.002 and 31.021-.022, the Commissioner heads the Texas Department of Insurance, administers and enforces the Insurance Code, and may adopt rules and issue orders needed to accomplish the Code's purposes. Practical consequence: because a validly adopted Commissioner rule carries the force of law, violating a TDI rule can support license discipline just as violating a statute can.
Why the other options are wrong
- A) The Commissioner does not set rates for every line; rate regulation varies by line, and the Commissioner's role is principally oversight and enforcement.
- B) Coverage disputes between insureds and insurers are resolved by the courts, not by the Commissioner sitting as an appellate tribunal.
- D) Texas does not require prior approval of each individual policy; form and rate filing requirements vary by line and product.
Memory hook
The Commissioner enforces the Code and adopts rules, not rates for everything.