Texas Insurance Regulation & the Commissioner — Texas Insurance Law — Life & Health Practice Test

This Texas Insurance Law — Life & Health Texas Insurance Regulation & the Commissioner practice set has 18 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Texas Insurance Regulation & the Commissioner bank with the correct answer and an explanation. The practice quiz above draws 18 questions at random from the same bank.

1. Under the Texas Insurance Code, who serves as the chief executive and administrative officer of the Texas Department of Insurance (TDI)?

   • The Commissioner of Insurance — Correct answer
   • The Lieutenant Governor
   • The Speaker of the Texas House of Representatives
   • The State Insurance Guaranty Fund Board

   Explanation: The Commissioner of Insurance is the executive head of TDI and administers the Texas Insurance Code (Tex. Ins. Code §§31.001-.002).

   Handbook: Texas Insurance Regulation & the Commissioner — Office of Commissioner

2. Under Texas Insurance Code sections 31.001 and 31.002, the Commissioner of Insurance's general powers and duties include:

   • Executing the duties imposed on the Commissioner by the Insurance Code and regulating the business of insurance in Texas — Correct answer
   • Setting federal interest rates for annuity products nationwide
   • Serving simultaneously as an elected member of the Texas Legislature
   • Acting only as an advisor to insurers, with no independent regulatory authority

   Explanation: TIC §§31.001-.002 establish the Commissioner's general charge: to execute the duties the Insurance Code imposes and to regulate the business of insurance in Texas (Tex. Ins. Code §§31.001-.002).

   Handbook: Texas Insurance Regulation & the Commissioner — General Powers and Duties

3. Under Texas Insurance Code sections 31.021 and 31.022, the Commissioner of Insurance's rulemaking authority allows the Commissioner to:

   • Adopt reasonable rules necessary to implement and administer the provisions of the Insurance Code — Correct answer
   • Repeal statutes passed by the Texas Legislature
   • Grant an insurer a permanent exemption from all state insurance taxes
   • Issue rules only with respect to property and casualty insurers, never life and health insurers

   Explanation: TIC §§31.021-.022 give the Commissioner authority to adopt rules reasonably necessary to implement and carry out the Insurance Code — rulemaking cannot override or repeal the statutes themselves (Tex. Ins. Code §§31.021-.022).

   Handbook: Texas Insurance Regulation & the Commissioner — Rulemaking Authority