The purpose of this bulletin is to remind all regulated entities about statutory requirements concerning requests for information by the Texas Department of Insurance and to clarify the procedures by which the Department will address information requests and responses.
Section 38.001 of the Texas Insurance Code authorizes the Department to address any reasonable inquiry to a licensee relating to the licensee´s business condition or which the Department considers necessary for the public good or for a proper discharge of the Department´s duties. It is the duty of the licensee to answer such inquiries in writing not later than the 10 th day after the date the inquiry is received. While Section 38.001 of the Code does not provide for any extensions beyond the stated 10 days, the Department may grant extensions under appropriate circumstances.
The Department will consider requests for extensions of time beyond the 10 days allowed by Section 38.001 provided that 1) the request is made in writing prior to the expiration of the initial 10 day period, 2) the request states a specific reason a response cannot be provided in accordance with Section 38.001 of the Texas Insurance Code, and 3) the request indicates the date a complete response can be expected. The granting of any extension is in the discretion of the Department.
An extension request stating only that additional time is needed to gather the requested information, or merely that a response will be forthcoming, will not be considered responsive to a Section 38.001 inquiry. The division of the Department that receives the request for an extension will determine whether to accept the request, and will notify the requester whether an extension was granted. Entities that do not respond timely to requests made pursuant to Section 38.001 will be referred to the Legal and Compliance Division for possible administrative action, which may include, but is not limited to, fines and/or penalties under Chapters 82 and 84 of the Texas Insurance Code.
This bulletin is intended to address only inquiries made pursuant to Section 38.001, not other requests such as those authorized by Article 1.10D of the Texas Insurance Code.
Questions may be directed to Norma Lopez Garcia, Deputy Commissioner for Legal & Compliance at 512-475-1821 or norma.garcia@tdi.state.tx.us.
Sincerely,
Jose Montemayor
Commissioner of Insurance