Texas Statutes and Rules Common to Life and Health Insurance
Why does Texas law define transacting insurance broadly rather than by where a contract is signed?
Answer and explanation
Answer: A. A broad definition prevents insurers from escaping oversight by arranging for contracts to be formed elsewhere. If the solicitation, premium collection, or claim settlement touches Texas consumers, Texas law applies.Source: Texas Insurance Code — Tex. Ins. Code ch. 101, purpose and scope of the unauthorized insurance provisions
More texas statutes and rules common to life and health insurance questions
- A life insurance company wants to begin writing business in Texas. What must it obtain from the Texas Department of Insurance first?
- A life insurer asks which Texas official may issue orders needed to carry out the state's insurance laws. Which answer best identifies that official?
- A life insurer chartered in Ohio is admitted to do business in Texas. What is its classification in Texas?
- A life insurer organised under the laws of Canada is admitted to transact insurance in Texas. How is it classified?
- A newly licensed Texas agent wants to sell policies for a particular life insurer. What must happen before she may act for that insurer?
- A nonresident Texas licensee has her home state licence revoked for misconduct. What is the effect on the Texas licence?
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