Which entity enforces truthfulness and non-discrimination rules in solicitation and negotiation in Texas insurance practice?

• A. Texas Department of Insurance
• B. Federal Trade Commission
• C. Local district attorneys
• D. Insurance carriers themselves

Answer: (A)

The Texas Department of Insurance is the state regulatory agency responsible for supervising insurance practices in Texas, including how agents solicit and negotiate with consumers. It enforces the Texas Insurance Code provisions on truthful representation and nondiscrimination in marketing and negotiations, and it can investigate complaints, enforce penalties, and take licensing actions when violations occur. This is the authority specifically tasked with overseeing insurance conduct within the state.

The Federal Trade Commission handles broad federal consumer protections but does not regulate Texas-specific insurance solicitation and negotiation practices. Local district attorneys enforce criminal statutes rather than day-to-day regulatory compliance in insurance. Insurance carriers implement internal policies but are not the enforcement body for these rules, which is why the state insurance department is the correct choice.