State RegulationsTX specificDifficulty 1/5
Under TIC 4001.254-255, where must a licensed Texas agent keep the records of the insurance transactions the agent handles?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 4001.254-255, a licensee must maintain records of the insurance transactions the licensee handles and keep them at the licensee's place of business, where the department may inspect them. The duty belongs to the agent rather than to the appointing insurer, and the point of the requirement is accessibility: an examiner must be able to review the file where the business is conducted. Practically, an agent should keep an orderly transaction file at the licensed location instead of relying on the insurer's records to answer a department inquiry.
Why the other options are wrong
- A) Insurer records do not satisfy the agent's own duty; the agent must maintain and produce the records at the agent's place of business.
- B) Records are not filed routinely with the department; they are kept by the agent and examined at the department's request.
- D) Filing with a county clerk is not the mechanism; the requirement is maintenance at the agent's place of business with department access.
Memory hook
Keep the transaction file where you work, because the examiner comes to you.