Which duty is performed by the Texas Insurance Commissioner?

• A. Issuing certificates of authority to insurers wishing to sell insurance products in Texas
• B. Setting premium rates for all policies
• C. Determining individual policy coverages
• D. Hearing all claims disputes

Answer: (A)

The duty being tested is the regulator’s authority to authorize insurers to operate in Texas. The Texas Insurance Commissioner issues certificates of authority to insurers that want to sell insurance products in the state, and having this certificate is what legally lets an insurer transact business here. Without it, an insurer cannot issue policies in Texas.

Premium rates aren’t personally set by the commissioner; rates are filed with and reviewed/approved by the department under regulatory procedures. Policy coverages are determined by the insurer’s product design and underwriting choices, not by the commissioner. And while the department can hold hearings related to regulatory matters, the commissioner does not preside over every claims dispute.