Texas Statutes and Rules Common to Life and Health Insurance
A licensed Texas life agent wants to split a commission with a friend who referred the client but holds no insurance licence. What does Texas law allow?
Answer and explanation
Answer: D. Commission may be paid only to a person licensed for the line of insurance involved. Paying an unlicensed referrer is prohibited and exposes the agent to discipline.Source: Texas Insurance Code — Tex. Ins. Code ch. 4005, payment of commissions to licensed persons
More texas statutes and rules common to life and health insurance questions
- A life insurer asks which Texas official may issue orders needed to carry out the state's insurance laws. Which answer best identifies that official?
- A life insurer chartered in Ohio is admitted to do business in Texas. What is its classification in Texas?
- A life insurer organised under the laws of Canada is admitted to transact insurance in Texas. How is it classified?
- A newly licensed Texas agent wants to sell policies for a particular life insurer. What must happen before she may act for that insurer?
- A nonresident Texas licensee has her home state licence revoked for misconduct. What is the effect on the Texas licence?
- A nonresident Texas licensee moves permanently from Louisiana to Texas. What must the licensee do?
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