State RegulationsTX specificDifficulty 2/5
Before the Commissioner of Insurance revokes or modifies a carrier's certificate of authority, what does TIC 86.002 require?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
TIC 86.002 requires the commissioner to notify the carrier in writing of the intent to revoke or modify the certificate and to state specifically in the notice the reason for the action. Notice comes first; the opportunity for a hearing follows under the Administrative Procedure Act, and neither the carrier's consent nor the attorney general's approval is required.
Why the other options are wrong
- B) Notice precedes the hearing; a public hearing is not a precondition to giving notice.
- C) The carrier's consent is not required for the commissioner to act on a statutory ground.
- D) The attorney general does not have to recommend the action before the commissioner may give notice.
Memory hook
Revoke or modify only after written notice that says why.