State RegulationsTX specificDifficulty 2/5
Before the department issues a certificate of authority, what must the Commissioner determine under TIC 801.052-.053?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 801.052-.053, the Commissioner examines the application — and may investigate the applicant — and issues a certificate of authority only if satisfied that the applicant meets the requirements of the Insurance Code; the certificate then covers the lines of business for which the applicant qualifies. The determination is therefore both a qualification check and a scope-setting step. Practically, authority in Texas is line-specific: an insurer that later wants to add a line of business must obtain authority for that line rather than simply beginning to write it.
Why the other options are wrong
- A) There is no county-by-county appointment requirement; a certificate of authority is statewide and defined by line of business, not by territory.
- C) An insurer is not restricted to a single line; it may be authorized for each line of business for which it qualifies.
- D) Approval of a consumer complaint plan by the Attorney General is not a condition of issuance; the department evaluates the applicant under the Insurance Code.
Memory hook
Qualify for the line, then get the certificate for that line.