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?

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.