Texas Statutes and Rules Common to Life and Health Insurance
Why does Texas require an agent to keep records of premium received from clients?
Answer and explanation
Answer: C. Premium collected from a client belongs to the insurer or the client, not the agent. Records make it possible to verify that the agent has not misapplied or commingled those funds.Source: Texas Insurance Code — Tex. Ins. Code ch. 4001, fiduciary handling of premium and required records
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590 Texas questions like this one.
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