TEXAS STATE PORTION COMPREHENSIVE
EXAM 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ who appoints the commissioner of insurance and for how long.
Answer: the governor for a two-year term ending February 1 of each
odd-numbered year
◉ the commissioner must be what. Answer: a competent and
experienced administrator, be well informed about insurance and
insurance regulation, and have at least 5 years experience as an
executive in the administration of business or government or as a
practicing attorney or CPA
◉ the commissioner must provide how much in a surety bond. Answer:
$50,000
◉ general powers and duties of the commissioner of insurance. Answer:
administers, enforces, and carries out the provisions of the Texas
insurance code and other applicable laws, including the calculation of
insurance reserve
,◉ electronic transfers and the commissioner. Answer: the commissioner
regulates the electronic transfer of any fee, guaranteed fund, or other
money owed or held for the state. the commissioner will require the
electronic transfer of any such amount that exceeds $500,000
◉ reinsurance reserves for certain insurers. Answer: on 12/31 of every
year, the department of insurance will compute the reinsurance reserve
for all unexpired risks of every insurer doing business in Texas
◉ what happens if the department of insurance receives a written
complaint filed against an insurer or producer. Answer: the department
will, at least quarterly and until the matter is resolved, notify each party
to the compliant of the complaint's status unless doing so would
jeopardize an undercover investigation
◉ in addition to the other duties required of the texas department of
insurance, the department shall. Answer: regulate the business of
insurance in Texas, administer the worker's comp system of Texas,
ensure that this code and other laws regarding insurance are executed,
protect and ensure the fair treatment of consumers, and ensure fair
competition
◉ what does examinations of records do. Answer: analyze the insurer,
its financial condition, its ability to meet its liabilities and its compliance
with state laws
,◉ who does the examination of records apply to. Answer: insurers
authorized to transact business in Texas, including foreign insurers
◉ an agent or insurer receiving an examination inquiry must respond to
the inquiry in writing within how many days. Answer: 10 days
◉ frequency of examination. Answer: the department may examine a
carrier as frequently as necessary, and at least once every five years
◉ the department has the following powers regarding examinations.
Answer: free access to all books and papers that relate to the carrier's
business and affairs, authority to summon and examine under oath an
employee of the carrier or any other person in relation to the carrier's
affairs
◉ cease and desist orders. Answer: requires violators of the Texas
insurance code to cease and desist immediately from prohibited acts,
methods, or practices
◉ the commissioner may issue an emergency cease and desist order if.
Answer: an authorized person commits an unfair method of competition
or a deceptive act or practice, an unauthorized person engages in the
business of insurance, or it appears to the Commissioner that the alleged
conduct is fraudulent or hazardous, endangers public safety, or can cause
significant, imminent, and irreparable public injury
, ◉ a cease and desist order must contain. Answer: the name and last
known address of the person against whom the order is entered, a short
statement of the immediate danger presented by the prohibited conduct
and of the factual bases of the order, a statement of the rights of the
person, a statement of the penalties which may be assessed, and a
requirement that the person immediately cease and desist from the acts
stated
◉ a person affected by an emergency cease and desist order can contest
the order by doing what. Answer: requesting a hearing before the
commissioner within 30 days after receiving the order
◉ the hearing must be held within how many days after the date the
commissioner receives the request. Answer: 10 days
◉ at the hearing who has the burden of proof to show why the order
should be affirmed. Answer: the Department of insurance
◉ pending the hearing, what happens to the order. Answer: it continues
in full force unless the order is stayed by the Commissioner
◉ at the hearing what does the commissioner do to the order. Answer:
affirms, modifies, or sets it aside
EXAM 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ who appoints the commissioner of insurance and for how long.
Answer: the governor for a two-year term ending February 1 of each
odd-numbered year
◉ the commissioner must be what. Answer: a competent and
experienced administrator, be well informed about insurance and
insurance regulation, and have at least 5 years experience as an
executive in the administration of business or government or as a
practicing attorney or CPA
◉ the commissioner must provide how much in a surety bond. Answer:
$50,000
◉ general powers and duties of the commissioner of insurance. Answer:
administers, enforces, and carries out the provisions of the Texas
insurance code and other applicable laws, including the calculation of
insurance reserve
,◉ electronic transfers and the commissioner. Answer: the commissioner
regulates the electronic transfer of any fee, guaranteed fund, or other
money owed or held for the state. the commissioner will require the
electronic transfer of any such amount that exceeds $500,000
◉ reinsurance reserves for certain insurers. Answer: on 12/31 of every
year, the department of insurance will compute the reinsurance reserve
for all unexpired risks of every insurer doing business in Texas
◉ what happens if the department of insurance receives a written
complaint filed against an insurer or producer. Answer: the department
will, at least quarterly and until the matter is resolved, notify each party
to the compliant of the complaint's status unless doing so would
jeopardize an undercover investigation
◉ in addition to the other duties required of the texas department of
insurance, the department shall. Answer: regulate the business of
insurance in Texas, administer the worker's comp system of Texas,
ensure that this code and other laws regarding insurance are executed,
protect and ensure the fair treatment of consumers, and ensure fair
competition
◉ what does examinations of records do. Answer: analyze the insurer,
its financial condition, its ability to meet its liabilities and its compliance
with state laws
,◉ who does the examination of records apply to. Answer: insurers
authorized to transact business in Texas, including foreign insurers
◉ an agent or insurer receiving an examination inquiry must respond to
the inquiry in writing within how many days. Answer: 10 days
◉ frequency of examination. Answer: the department may examine a
carrier as frequently as necessary, and at least once every five years
◉ the department has the following powers regarding examinations.
Answer: free access to all books and papers that relate to the carrier's
business and affairs, authority to summon and examine under oath an
employee of the carrier or any other person in relation to the carrier's
affairs
◉ cease and desist orders. Answer: requires violators of the Texas
insurance code to cease and desist immediately from prohibited acts,
methods, or practices
◉ the commissioner may issue an emergency cease and desist order if.
Answer: an authorized person commits an unfair method of competition
or a deceptive act or practice, an unauthorized person engages in the
business of insurance, or it appears to the Commissioner that the alleged
conduct is fraudulent or hazardous, endangers public safety, or can cause
significant, imminent, and irreparable public injury
, ◉ a cease and desist order must contain. Answer: the name and last
known address of the person against whom the order is entered, a short
statement of the immediate danger presented by the prohibited conduct
and of the factual bases of the order, a statement of the rights of the
person, a statement of the penalties which may be assessed, and a
requirement that the person immediately cease and desist from the acts
stated
◉ a person affected by an emergency cease and desist order can contest
the order by doing what. Answer: requesting a hearing before the
commissioner within 30 days after receiving the order
◉ the hearing must be held within how many days after the date the
commissioner receives the request. Answer: 10 days
◉ at the hearing who has the burden of proof to show why the order
should be affirmed. Answer: the Department of insurance
◉ pending the hearing, what happens to the order. Answer: it continues
in full force unless the order is stayed by the Commissioner
◉ at the hearing what does the commissioner do to the order. Answer:
affirms, modifies, or sets it aside
