State RegulationsTX specificDifficulty 2/5
During a TDI examination, an examiner asks a manager for the insurer's books and papers relating to its business. The manager refuses, calling the material internal. What authority does the examiner have?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 401.054 gives the department or its appointed examiner free access, and the power to require the carrier or the carrier's agent to provide free access, to all books and papers of the carrier or the carrier's agent that relate to the carrier's business and affairs. The same section authorizes the examiner to summon and examine under oath an officer, agent, or employee of the carrier.
Why the other options are wrong
- A) A carrier cannot shield records from examination simply by labeling them internal.
- C) The examiner's access is statutory; no court subpoena is required for each file.
- D) Board consent is irrelevant, because the access rights in TIC 401.054 are not waivable by the carrier.
Memory hook
Free access to the carrier's books and its agent's books.