Texas Statutes and Rules Common to Life and Health Insurance
Under Texas law, whose money is the premium an agent collects from an applicant before the insurer receives it?
Answer and explanation
Answer: D. The agent never owns collected premium. Depending on the circumstances it is the insurer's money or must be returned to the applicant, and until then it is trust property.Source: Texas Insurance Code — Tex. Ins. Code ch. 4001, premium held in a fiduciary capacity
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