State RegulationsTX specificDifficulty 1/5
Under TIC 83.051, what kind of cease and desist order may the Commissioner of Insurance issue, and on what basis?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 83.051 governs emergency cease and desist orders. The commissioner may issue one ex parte, without a prior hearing, when the commissioner believes an authorized person is committing an unfair act or is in a hazardous condition, or an unauthorized person is engaging in the business of insurance in violation of Chapter 101, and it appears the conduct is fraudulent, is hazardous or creates an immediate danger to the public safety, or is causing or can reasonably be expected to cause public injury.
Why the other options are wrong
- A) The order is an emergency remedy issued ex parte; it is not limited to issuance after a contested case hearing.
- C) The statute reaches both authorized and unauthorized persons, not only department licensees.
- D) The commissioner acts on the statutory showing, not on a consumer's petition.
Memory hook
Emergency, ex parte, aimed at fraud and public harm.