A Texas agent is taking an application for a new life policy that will replace the applicant's existing policy. Under TIC 1114.051-.057, which of the following is a duty the agent must personally perform?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 1114.051-.057 the agent, as the person at the point of sale, must submit with the application the applicant's signed statement describing existing coverage and whether a replacement is involved, must sign the agent's own statement to the same effect to the best of the agent's knowledge, and where a replacement is involved must present and leave with the applicant the buyer's guide and the prescribed comparison disclosure no later than the time the application is signed. The duty is informational and personal to the agent: it exists so the applicant holds comparable information while the sale can still be walked away from. Performing the paperwork late, or mailing it after the application is signed, is a violation of the replacement chapter that can expose the agent to administrative sanction.
Why the other options are wrong
- A) Nothing in TIC 1114.051-.057 requires the existing insurer's consent; the existing insurer is entitled to notice, but it has no veto over the replacement.
- B) Neither the agent nor TDI certifies that the new policy is better; the chapter requires disclosure so the policyowner can judge, not a superiority finding.
- D) Notifying the existing insurer is the replacing insurer's duty, not the agent's, which makes this a wrong-party distractor.
Memory hook
Agent discloses and delivers at the kitchen table; company handles the back-office notices.