Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOMedium
An insurance company wishes to use a new policy form for its whole life insurance products in Texas. Which entity has the authority to approve or disapprove this new policy form?
- AThe Texas Department of Insurance (TDI)
- BThe National Association of Insurance Commissioners (NAIC)
- CThe Texas Attorney General's Office
- DThe Texas Legislature
Show answer & explanationAnswer & explanation
Correct answer: A. The Texas Department of Insurance (TDI)
The Texas Department of Insurance (TDI) has the regulatory authority to approve or disapprove all insurance policy forms used in the state. This ensures compliance with state laws and consumer protection.
Why the other options are wrong
- B. The NAIC develops model laws but does not approve individual state policy forms.
- C. The Attorney General's Office provides legal counsel to the state, not policy form approval.
- D. The Texas Legislature creates laws, but TDI enforces them and approves forms.
Policy Form Approval Authority
The Texas Department of Insurance (TDI) is the state agency responsible for reviewing and approving all insurance policy forms used within Texas.
- Ensures forms comply with Texas insurance laws and regulations.
- Protects consumers from unfair or misleading policy language.
- Approval is required before any form can be marketed or used.
Memory trick: New policy form? TDI's the boss, or it's a loss.