State RegulationsTX specificDifficulty 2/5
TDI is investigating a complaint that a Texas agent misrepresented a policy. Under TIC 541.102, what must the agent receive before a violation may be determined?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 541.102, when the commissioner has reason to believe a violation has occurred, the department serves on the person charged a statement of the charges and a notice of the hearing, and under TIC 541.103 the person is entitled to a hearing on those charges. A determination of violation under TIC 541.107 follows the hearing, not the other way around. Practical consequence: a sanction imposed without a statement of charges and a noticed hearing is vulnerable on review, so a licensee should never ignore a TDI hearing notice.
Why the other options are wrong
- A) An opportunity to answer in writing is not the statutory requirement; the person charged is entitled to a statement of the charges and notice of a hearing.
- C) Notice from the appointing insurer is a contractual matter and does not satisfy the department's obligation before determining a violation.
- D) Chapter 541 does not condition a determination of violation on a prior warning and cure period; the required step is a statement of charges and a noticed hearing.
Memory hook
Charges and a noticed hearing come before any finding of violation.