State RegulationsTX specificDifficulty 2/5
During a department examination of a Texas-authorized life insurer, an appointed examiner asks the insurer's regional manager in Dallas to turn over the agency's policy and premium records. The manager refuses. What authority does the examiner have under TIC 401.054?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 401.054, the department or the examiner appointed by the department has free access, and may require the carrier or the carrier's agent to provide free access, to all books and papers of the carrier or the carrier's agent that relate to the carrier's business and affairs. The examiner also has authority to summon and examine under oath, if necessary, an officer, agent, or employee of the carrier or any other person in relation to the carrier's affairs and condition. Refusing a lawful demand exposes the carrier and the agent to sanctions under TIC Chapter 82.
Why the other options are wrong
- A) An attorney's objection does not terminate a statutory examination.
- C) Access is not limited to the principal office; it extends to the books and papers of the carrier's agent wherever they are kept.
- D) No warrant is required; the statute confers direct access and summons authority on the examiner.
Memory hook
Free access to books, plus oath power over officers and agents.