Texas Statutes and Rules Common to Life and Health Insurance

An insurer's certificate of authority is revoked, and it continues to accept premiums from Texas consumers. How are the policies it already issued treated?

Answer and explanation
Answer: A. Loss of a certificate of authority bars an insurer from writing new business, but it does not release the insurer from policies already issued. Policyholders keep their contractual rights.Source: Texas Department of Insurance — TDI company licensing: effect of suspension or revocation of a certificate of authority

On the exam in: Texas · difficulty: medium

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