State RegulationsTX specificDifficulty 2/5
A Texas life and health agent splits a commission with a friend who is licensed in Texas only for property and casualty insurance. Under TIC 4005.053, is this permitted?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 4005.053 the payee must be licensed for the same type of coverage as the business that produced the commission. A property and casualty license does not cover life and health business, so this split is unlawful even though the friend is a licensed agent and even if the friend played no part in the sale. Sharing with a properly licensed life and health agent is, by contrast, permitted.
Why the other options are wrong
- A) Any Texas license is not enough; the license must cover the same type of coverage.
- B) The payee's role in the sale is not the test; the license for that line of business is.
- D) Sharing between individuals is lawful when both hold the same type of license.
Memory hook
Match the line: a life commission needs a life license to share it.