Texas Life Agent Practice Exam

The Insurance Commissioner shall examine each established, authorized insurer in Texas no less than:

1. Once every two years

2. Once every three years

3. Once every five years

4. Once every year

The correct answer is: Once every five years

The provision for the Texas Insurance Commissioner's examination of each established, authorized insurer is outlined in the Texas Insurance Code. The correct answer, which indicates that the Commissioner must examine each insurer no less than once every five years, is important for several reasons. This timeframe allows for a comprehensive assessment of the insurer's operations, financial condition, and compliance with state laws and regulations. Examinations serve to protect policyholders by ensuring that insurers are solvent and able to meet their future obligations. By setting the examination interval at five years, it balances the need for oversight with the operational realities of insurers, allowing them adequate time to implement any recommended changes or improvements following an examination. This regulatory practice helps maintain the integrity of the insurance market in Texas by ensuring that companies are not only compliant but also financially responsible over a sustained period. Overall, the five-year requirement for examinations emphasizes the importance of regular oversight while being mindful of the resources and logistics involved in such comprehensive assessments.