Under 28 TAC 1.502, how does the Texas Department of Insurance treat a criminal conviction of a license holder?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 28 TAC 1.502, the Department may refuse to issue an original license, or may revoke, suspend, or refuse to renew a license, only after notice and an opportunity for a hearing and only if it determines that the holder has been convicted of an offense that directly relates to the duties and responsibilities of the licensed occupation, an offense listed in the Code of Criminal Procedure, or a sexually violent offense. The rule is a fitness standard that TDI applies using the Occupations Code Chapter 53 factors; it is not a penalty that attaches automatically to every conviction.
Why the other options are wrong
- A) 28 TAC 1.502(h) requires revocation on the holder's imprisonment following a felony conviction, not on the conviction alone. Otherwise the rule requires notice and an opportunity for a hearing before the Department acts.
- C) The rule reaches any offense that directly relates to the duties and responsibilities of the licensed occupation, not only offenses charged under the Texas Insurance Code.
- D) 28 TAC 1.502 applies to applicants and to existing license holders alike. TDI may revoke, suspend, or refuse to renew a license that has already been issued.
Memory hook
A criminal record is a fitness question TDI decides after a hearing, not an automatic revocation.