Key Takeaways
- The Texas Department of Insurance (TDI) regulates all insurance activities in Texas under the Texas Insurance Code
- The Commissioner of Insurance is appointed by the Governor with Senate confirmation
- TDI handles licensing, enforcement, consumer complaints, rate review, and market conduct
- The Texas Insurance Code and Administrative Code Title 28 contain all insurance regulations
- Texas requires background checks for all insurance license applicants
Texas Department of Insurance (TDI)
Important: This study guide covers Texas state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Texas Department of Insurance (TDI) is the state agency responsible for regulating the insurance industry in Texas. Unlike California where the Commissioner is elected, Texas's Commissioner is appointed.
The Commissioner of Insurance
The Commissioner of Insurance is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor
- Responsible for enforcing the Texas Insurance Code
- Authorized to adopt rules, investigate violations, and discipline licensees
Commissioner Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt rules interpreting the Insurance Code |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review insurance rates for compliance |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
The Texas Insurance Code
Texas insurance law is found in the Texas Insurance Code and the Texas Administrative Code, Title 28:
- Licensing requirements for agents and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the Texas Commissioner is APPOINTED by the Governor, not elected. This differs from some other states.
TDI Organization
TDI operates through several divisions:
- Agent and Adjuster Licensing - Handles licensing and continuing education
- Life & Health Lines - Regulates life and health insurance
- Rate Review - Reviews insurance rates
- Enforcement - Investigates complaints and violations
- Consumer Protection - Assists consumers with disputes
How is the Texas Commissioner of Insurance selected?
Where is Texas insurance law primarily found?