State RegulationsTX specificDifficulty 2/5
A Texas-authorized insurer stops filing the annual statement required by law with the department. What consequence does TIC 801.057 provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 801.057, a certificate of authority of an insurer that fails to file an annual statement required by law is subject to being suspended or revoked by the department. Read together with TIC 801.053, under which a certificate remains effective until suspended or revoked, the annual statement obligation is one of the concrete ways a certificate with no expiration date can still be lost. The department may also pursue the broader sanctions available under TIC Chapter 82.
Why the other options are wrong
- A) Suspension or revocation is action the department takes; the certificate does not self-terminate on the deadline.
- B) The statute reaches the insurer's own certificate of authority, not merely the licenses of its appointed agents.
- D) TIC 801.057 addresses the certificate, not any policyholder cancellation right.
Memory hook
No annual statement, no certificate safety.