Texas Statutes and Rules Common to Life and Health Insurance

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?

Answer and explanation
Answer: A. Soliciting Texas residents and collecting their premiums is transacting insurance in Texas. Doing so without a certificate of authority is the unauthorised business of insurance and submits the company to Texas jurisdiction and enforcement.Source: Texas Insurance Code — Tex. Ins. Code ch. 101, unauthorized insurance and jurisdiction over unauthorized insurers

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