Texas Statutes and Rules Common to Life and Health Insurance
A Texas agent deposits premium collected from clients into his personal checking account, intending to forward it to the insurer later. What has he done?
Answer and explanation
Answer: D. Premium collected belongs to the insurer or the insured, and the agent holds it in a fiduciary capacity. Mixing it with personal funds is commingling, whatever the agent intends to do later.Source: Texas Insurance Code — Tex. Ins. Code ch. 4001, fiduciary capacity of agents holding premium
More texas statutes and rules common to life and health insurance questions
- An individual holds an active home-state life-agent license in good standing with the required authority. Which Texas license should the individual apply for to act as a life agent in Texas while remaining a resident of the home state?
- An insurance company is incorporated under the laws of the State of Texas. From the Texas point of view, how is it classified?
- An insurer refuses to respond to a lawful TDI directive about its Texas insurance business. Which Commissioner power is most directly involved?
- An insurer violates a claim-settlement cease-and-desist order and refuses to correct the practice. Which Commissioner response is authorized under the claim-settlement enforcement statute?
- An insurer's certificate of authority is revoked, and it continues to accept premiums from Texas consumers. How are the policies it already issued treated?
- An out-of-state company with no Texas certificate of authority mails life insurance solicitations to Texas residents and collects premiums. How does Texas law treat this?
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