State RegulationsTX specificDifficulty 1/5
Under TIC 401.051, which carriers must the department or an examiner appointed by the department visit and examine?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 401.051, the department or an examiner appointed by the department shall visit at the carrier's principal office each carrier organized under the laws of this state and each other carrier authorized to engage in business in this state. The department shall examine the carrier's financial condition, its ability to meet its liabilities, and its compliance with the laws of this state that affect the conduct of its business. Both domestic and authorized out-of-state carriers are therefore inside the examination duty.
Why the other options are wrong
- A) The duty also reaches every carrier authorized to do business in Texas even though organized under another state's laws.
- B) Complaints are one trigger for investigation, but the examination duty does not depend on them.
- D) Examination is a statutory duty of the department, not a service a carrier must request.
Memory hook
Domestic plus authorized: both get examined.