State RegulationsTX specificDifficulty 2/5
Which of the following is a duty that the Texas Insurance Code assigns to the Texas Department of Insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 31.002 lists the department's duties: regulating the business of insurance in this state, administering the workers' compensation system under Title 5 of the Labor Code, ensuring that this code and other laws regarding insurance and insurance companies are executed, protecting and ensuring the fair treatment of consumers, and ensuring fair competition in the insurance industry. Drafting legislation and litigating private claims are not among the listed duties.
Why the other options are wrong
- A) Drafting and passing legislation is the legislature's role; the department administers and executes what the legislature enacts.
- C) The department does not act as private counsel for policyowners; it enforces the insurance laws in the public interest.
- D) The department reviews filings and market conduct, but TIC 31.002 does not charge it with approving every rate.
Memory hook
TDI regulates, executes, protects consumers, keeps competition fair.