State RegulationsTX specificDifficulty 2/5
A Texas-licensed agent has her license suspended by the insurance regulator in another state. What does Texas law require of her?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 4005.101-.102, the Commissioner regulates and may discipline Texas license holders, and a license holder must report administrative action taken against her license in another jurisdiction so the Department can act on it. Practical consequence: an unreported out-of-state suspension is itself a basis for Texas discipline, on top of whatever sanction TDI imposes for the underlying conduct.
Why the other options are wrong
- A) A Texas license is not automatically suspended by another state's order; Texas takes its own action after being notified.
- B) The licensee has an affirmative duty to report; TDI is not required to discover the action on its own.
- D) The duty arises when the action is taken, not at renewal, and it is not conditioned on the sanction still being in force.
Memory hook
Administrative action against you anywhere must be reported to Texas.