State RegulationsTX specificDifficulty 2/5
The department determines that a Texas-authorized insurer no longer satisfies a legal requirement for the granting of its certificate of authority. Before the Commissioner revokes or modifies that certificate under TIC Chapter 86, what notice is required?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 86.002, the commissioner must notify the insurance carrier in writing of the intent to revoke or modify the carrier's certificate of authority and must specifically state in the notice the reason for the action. TIC 86.001 supplies the substantive trigger: the commissioner may revoke or modify a certificate of authority if a condition or requirement prescribed by law for granting the certificate is no longer satisfied. Practically, a notice that omits a stated reason undermines the department's revocation.
Why the other options are wrong
- B) Revocation is not summary; written notice stating the reason is mandatory under TIC 86.002.
- C) Texas Register publication is rulemaking notice, not the carrier-specific notice Chapter 86 requires.
- D) The notice must be in writing to the carrier, not merely verbal to an agent.
Memory hook
Revoke or modify: write it down and say why.