A Houston agency receives a cease and desist order from TDI. Under TIC 83.052, which of the following must the order contain?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 83.052, a cease and desist order must be in writing and must describe the act, practice, or method at issue, identify the statutory or regulatory provision that the conduct violates, and direct the person to cease and desist from that conduct. This content requirement is what makes the order enforceable and reviewable: the recipient must be told what to stop and why. Practically, an order that fails to identify the conduct or the provision violated is defective and far easier to challenge, so an agent or insurer that receives one should read it as the roadmap of exactly what TDI intends to prove.
Why the other options are wrong
- B) Enforcement of a cease and desist order is administrative, not judicial; the order does not place the matter before a jury, and any contest proceeds as an administrative hearing on request.
- C) Intent is not an element that must be found before an order may issue; whether conduct was intentional is considered when deciding how severe a sanction should be, not whether the conduct may be stopped.
- D) Policyholder consent plays no part in the Commissioner's authority; the department acts on its own authority to protect the insurance-buying public.
Memory hook
Name the act, name the provision you broke, then stop — that is TIC 83.052.