Texas Statutes and Rules Common to Life and Health Insurance

A retired Texas agent whose licence has lapsed continues receiving renewal commissions on policies she wrote while licensed. Is this generally permitted?

Answer and explanation
Answer: D. The prohibition targets paying unlicensed persons for insurance activity. Deferred or renewal commissions on business lawfully written while licensed are treated as already earned.Source: Texas Insurance Code — Tex. Ins. Code ch. 4005, renewal commissions after a licence ends

On the exam in: Texas · difficulty: medium

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