State RegulationsTX specificDifficulty 3/5
A Texas agent who also holds licenses elsewhere has the Louisiana license suspended by Louisiana regulators for a violation of Louisiana insurance law. What must the agent do, and why?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4005.101-.102, an administrative action taken against a license holder by another state's insurance regulator is reportable to TDI and may be a basis for suspending or revoking the Texas license. TDI's authority rests on the license holder's conduct and fitness to hold a Texas license, not on the geography of the conduct, and failure to report the action is an independent violation under TIC 4001.252 and TIC 4005.101-.102.
Why the other options are wrong
- A) The reporting duty is triggered by the administrative action itself; a criminal conviction is not required.
- C) TDI's power to discipline a Texas licensee is not limited to conduct that occurred inside Texas.
- D) Another state's suspension is not self-executing in Texas; TDI must act, and surrender of the Texas license is not automatic.
Memory hook
Discipline anywhere is reportable in Texas, and silence about it is its own violation.