State RegulationsTX specificDifficulty 2/5
Under TIC 401.054, what power does an examiner have in addition to access to books and papers?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 401.054, in addition to free access to books and papers, the department or the examiner appointed by the department has the 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. Practical consequence: an examination is not a paper review only, because individuals can be compelled to give sworn testimony about the carrier's affairs.
Why the other options are wrong
- B) The examination power is investigative; closing a carrier requires separate proceedings under the supervision and receivership provisions of the Code.
- C) An administrative penalty is imposed under Chapter 84 through its own process, not summarily by an examiner in the course of an examination.
- D) The authority to summon reaches the carrier's officers, agents, and employees and other persons in relation to the carrier's affairs, not the carrier's insureds as a class.
Memory hook
An examiner gets the books and sworn testimony.