State RegulationsTX specificDifficulty 2/5
A newly appointed Texas agent tells a client that her agency's certificate of authority permits her personally to solicit life insurance. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 801.052 ties the certificate of authority to the insurer: it authorizes the insurer to engage in the business of insurance and must state the specific kinds of insurance authorized, and TIC 801.051 governs its issuance. An individual's authority to solicit comes from the license issued to that individual, not from the insurer's certificate, so a certificate never substitutes for an agent license.
Why the other options are wrong
- A) The certificate belongs to the insurer, not to the individual producers who sell for it.
- C) The insurer's domicile does not change the rule; individuals are licensed in their own right.
- D) The problem is the missing individual license, not a continuing education shortfall.
Memory hook
The insurer is certificated; the person is licensed.