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Pursuant to 31.002, TDI must: Regulate the business of insurance in Texas Ensure the Texas Insurance Code and other

How does TDI learn of violations of the insurance code or agent misconduct?. ComplaintsConsumerAgentCompanyAnonymousInternal Discovery ExaminationFailure to File Failure to Respond to TDI InquirySister Agency Law Enforcement . What area of TDI is responsible for disciplinary action based upon violations of the insurance code and misconduct on the part of agents?.

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Pursuant to 31.002, TDI must: Regulate the business of insurance in Texas Ensure the Texas Insurance Code and other

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    1. Pursuant to § 31.002, TDI must: Regulate the business of insurance in Texas Ensure the Texas Insurance Code and other laws regarding insurance and insurance companies are executed.

    2. How does TDI learn of violations of the insurance code or agent misconduct? Complaints Consumer Agent Company Anonymous Internal Discovery Examination Failure to File Failure to Respond to TDI Inquiry Sister Agency Law Enforcement

    3. What area of TDI is responsible for disciplinary action based upon violations of the insurance code and misconduct on the part of agents? Enforcement Division

    4. Enforcement Division Teams Health, HMO, Life and Viatical Licensing P&C, Windstorm and Fire Marshal Rate, Title and Financial Workers Comp

    7. Who is subject to the Commissioner’s Authority? Holder of Permit License Certificate of Authority Certificate of Registration Other Authorization Issued or Existing

    8. Additional Regulatory Authority TEX. INS. CODE ANN. Chapter 82 applies to: an individual or a corporation, association or partnership or other artificial person who is engaged in the business of insurance or is regulated by the Commissioner

    9. Chapter 84 Administrative Penalties The Commissioner may impose an administrative penalty on a person licensed or regulated under [the Insurance] code . . . TEX. INS. CODE ANN. § 84.021

    10. A person, including an insurer, may not directly or indirectly do an act that constitutes the business of insurance…except as authorized by statute. TEX. INS. CODE ANN. § 101.102

    11. Making or proposing to make, as an insurer, an insurance contract; Taking or receiving an insurance application; Receiving or collecting any consideration for insurance, including: a premium a commission Issuing or delivering an insurance contract Directly or indirectly acting as an agent for or otherwise representing or assisting an insurer or person in: Soliciting, negotiating, procuring or effecting insurance Disseminating information relating to coverage or rates Forwarding an insurance application inspecting a risk Setting a rate

    12. Investigations The Texas Department of Insurance may investigate and make reports regarding alleged violations of the insurance code and misconduct on the part of agents. TEX. INS. CODE ANN. § 4001.007

    13. § 38.001 Inquiry § 101.104 Inquiry Subpoena Witness Statements Under Cover

    14. TEX. INS. CODE ANN. § 38.001 TDI may address a reasonable inquiry to any insurance company, including a Lloyd’s plan or reciprocal or interinsurance exchange an agent or other holder of an authorization Relating to the person’s business condition any matter connected with the person’s transactions that the Department considers necessary for the public good or for the proper discharge of the Department’s duties

    15. Written response due the 10th day after the date the inquiry is received

    16. Can the 10 days be extended? Commissioner’s Bulletin No. B-0040-00 Grant Extensions Under Appropriate Circumstances Written Request for Extension prior to initial 10 day period Specific reason a response cannot be made in accordance with § 38.001 Provide date complete response will be submitted

    17. Subject shall IMMEDIATELY provide information to the Commissioner

    18. The Commissioner may issue a subpoena regarding a matter the Commissioner has authority to consider or investigate TEX. INS. CODE ANN. §§ 36.151 & 36.152

    19. What Can Be Subpoenaed? Attendance and testimony of a witness Production of Records Is there a territorial limit on subpoenas? Throughout the State of Texas TEX. INS. CODE ANN. § 36.152

    20. Sanctions for violation of or failure to comply with a specific provision of the Insurance Code or its rules and regulations include: Cancel, suspend or revoke any permit, license, certificate of authority, certificate of registration, or other authorization; Deny an application for an original license; Probated license suspension; Order the possessor of such permit, license, certificate of authority or certificate of registration to: Cease and desist from the specified activity or from failure to comply with the Insurance Code and/or its rules and regulations; Pay an administrative penalty; Make restitution to all Texas residents, Texas insureds, and entities operating in Texas harmed by the violation or failure to comply; A combination of the sanctions. TEX. INS. CODE ANN. §§ 82.001, 82.051 - 82.054, 4005.101, 4005.102, 4005.103, 4005.109.

    21. Fiscal Year - 2006 Legal & Compliance ordered $16,722,399 in restitution for consumers. Legal & Compliance assessed $8,671,183 in administrative penalties.

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