Chapter 14 TX Life & Health State Laws
Exam 2026 Questions and Answers
Commissioner of Insurance - Correct answer-The Commissioner is the Chief
Executive and Administrative Officer of the Texas Department of Insurance (TDI)
and is appointed by the governor, with the advice and consent of the senate, for a
two-year term.
Qualifications of appointment require the Commissioner to be a competent and
experienced administrator, be well informed and qualified in the field of insurance
regulation, and have at least 5 years experience in the administration of business or
government, which may include former employment with the TDI.
The Commissioner is empowered to make reasonable rules and regulations to
enforce existing laws, conduct investigations of violations of the insurance code,
hold hearings, issue subpoenas, administer oaths, take testimony, issue cease and
desist orders, and assess penalties.
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,What are the qualifications for the Commissioner? - Correct answer--competent
and experienced
-well informed and qualified in the field of insurance regulation
-At least 5 years experience in the administration of business and government
Who appoints the Commissioner (Chief Executive and Administrative Officer of
the Texas Department of Insurance)? - Correct answer-Appointed by the governor
with advice and consent from the senate
How many terms does the Commissioner have? - Correct answer-Two-year term
General Powers and Duties (Commissioner) - Correct answer-The Commissioner's
powers and duties are granted by the Department and state legislature.
In addition to administering insurance regulations in Texas, the powers and duties
include:
-Regulating the business of insurance in this state
-Executes and enforces, but does not establish, the state's insurance code and other
insurance laws
-Ensuring fair competition within the insurance industry to foster competition
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,-Protecting and ensuring the fair treatment of consumers and handling insurance-
related consumer complaints
-Issuing producer licenses and approving, disapproving, or denying applications
for a certificate of authority to act as an insurer
-Examining the records of an insurer to determine financial condition and solvency
Which of the following is not a duty of the Commissioner?
A. Make state insurance laws
B. Handle insurance-related consumer complaints
C. Issue an insurance license for a producer
D. Enforce state insurance laws - Correct answer-A. Make state insurance laws
The Commissioner must enforce state insurance laws, not establish them.
Examination of Records - Correct answer-The Commissioner has a duty to
examine each insurance carrier that is organized under the laws of Texas and each
carrier that is authorized to engage in business in this state.
The Commissioner may visit the insurance carrier's principal office for the purpose
of investigating the affairs and condition.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, The Commissioner or appointed examiner must examine the financial condition of
an insurer, including its ability to meet its financial obligations and liabilities, as
well as its compliance with state law.
---The primary purpose of an examination is to determine solvency of the insurer.
An insurer may be examined whenever it is deemed necessary, but domestic and
licensed insurers must be examined by the Commissioner or appointed examiner
no less frequently than once every 5 years.
---The insurer or agent may be required to provide free access to all books and
papers that relate to the insurer or agent's business affairs.
The Commissioner may summon and examine under oath any of the insurer's
officers, agents, and employees in relation to the insurer's affairs and condition.
---Failing to comply with a request of examination or to provide requested
information by the department or appointed examiner will subject the insurer or
insurer's agent to disciplinary action.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Exam 2026 Questions and Answers
Commissioner of Insurance - Correct answer-The Commissioner is the Chief
Executive and Administrative Officer of the Texas Department of Insurance (TDI)
and is appointed by the governor, with the advice and consent of the senate, for a
two-year term.
Qualifications of appointment require the Commissioner to be a competent and
experienced administrator, be well informed and qualified in the field of insurance
regulation, and have at least 5 years experience in the administration of business or
government, which may include former employment with the TDI.
The Commissioner is empowered to make reasonable rules and regulations to
enforce existing laws, conduct investigations of violations of the insurance code,
hold hearings, issue subpoenas, administer oaths, take testimony, issue cease and
desist orders, and assess penalties.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,What are the qualifications for the Commissioner? - Correct answer--competent
and experienced
-well informed and qualified in the field of insurance regulation
-At least 5 years experience in the administration of business and government
Who appoints the Commissioner (Chief Executive and Administrative Officer of
the Texas Department of Insurance)? - Correct answer-Appointed by the governor
with advice and consent from the senate
How many terms does the Commissioner have? - Correct answer-Two-year term
General Powers and Duties (Commissioner) - Correct answer-The Commissioner's
powers and duties are granted by the Department and state legislature.
In addition to administering insurance regulations in Texas, the powers and duties
include:
-Regulating the business of insurance in this state
-Executes and enforces, but does not establish, the state's insurance code and other
insurance laws
-Ensuring fair competition within the insurance industry to foster competition
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,-Protecting and ensuring the fair treatment of consumers and handling insurance-
related consumer complaints
-Issuing producer licenses and approving, disapproving, or denying applications
for a certificate of authority to act as an insurer
-Examining the records of an insurer to determine financial condition and solvency
Which of the following is not a duty of the Commissioner?
A. Make state insurance laws
B. Handle insurance-related consumer complaints
C. Issue an insurance license for a producer
D. Enforce state insurance laws - Correct answer-A. Make state insurance laws
The Commissioner must enforce state insurance laws, not establish them.
Examination of Records - Correct answer-The Commissioner has a duty to
examine each insurance carrier that is organized under the laws of Texas and each
carrier that is authorized to engage in business in this state.
The Commissioner may visit the insurance carrier's principal office for the purpose
of investigating the affairs and condition.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, The Commissioner or appointed examiner must examine the financial condition of
an insurer, including its ability to meet its financial obligations and liabilities, as
well as its compliance with state law.
---The primary purpose of an examination is to determine solvency of the insurer.
An insurer may be examined whenever it is deemed necessary, but domestic and
licensed insurers must be examined by the Commissioner or appointed examiner
no less frequently than once every 5 years.
---The insurer or agent may be required to provide free access to all books and
papers that relate to the insurer or agent's business affairs.
The Commissioner may summon and examine under oath any of the insurer's
officers, agents, and employees in relation to the insurer's affairs and condition.
---Failing to comply with a request of examination or to provide requested
information by the department or appointed examiner will subject the insurer or
insurer's agent to disciplinary action.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
