Texas Statutes and Rules Common to Life and Health Insurance
An agent offers to pay $500 cash to a client as an inducement to buy a $500,000 whole life policy. What illegal trade practice under TIC § 541.056 has occurred?
Answer and explanation
Answer: A. TIC § 541.056 strictly prohibits rebating or offering financial inducements not specified in the insurance contract.Source: Texas Insurance Code Chapter 541 — § 541.056, Rebating
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