State RegulationsTX specificDifficulty 1/5
An insurer names a newly licensed Texas life agent to solicit its policies, and the agent plans to start taking applications next Monday. When must the insurer file the agent's appointment with TDI?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4001.201-.206, an insurer must file an appointment with TDI naming each agent who will solicit, negotiate or effect its insurance, and the appointment must be on file on or before the date the agent begins soliciting for that insurer. In practice the agent may not act for the insurer until the appointment is filed; soliciting before the filing is a violation by the insurer and exposes the agent to TDI discipline, and TDI may assess an administrative penalty for the late filing.
Why the other options are wrong
- A) An insurer's internal training schedule is a private matter and does not change the statutory filing trigger.
- C) Appointments are filed independently of license renewal and cannot wait for the renewal cycle.
- D) The trigger is the first act of solicitation, not the issuance of a policy; waiting until a policy is issued leaves the agent unappointed while selling.
Memory hook
Appointment follows the insurer's filing trigger: file it on or before the first day of soliciting.