State RegulationsTX specificDifficulty 2/5
Under TIC 4002.003, which of the following persons is generally NOT required to hold a Texas agent license for the activity described?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
TIC 4002.003 exempts limited activities from the licensing requirement, including clerical and administrative work performed by an insurer's employee who does not solicit or negotiate insurance and whose pay is not contingent on insurance sales. The exemption attaches to the activity actually performed: once a person explains coverage, takes an application, or is paid a commission contingent on the sale, the exemption no longer applies and a license is required.
Why the other options are wrong
- A) Negotiating annuity terms for a commission is precisely the activity the license requirement covers.
- B) Explaining benefits and taking an application for a commission is solicitation and negotiation, which requires a license.
- D) Servicing policies and earning renewal commissions requires an active, renewed license; being a former agent does not exempt it.
Memory hook
Clerical only, no sale, no commission, that is the exemption.