State RegulationsTX specificDifficulty 2/5
How does TIC 101.051 treat acts that are merely preparatory to, or that follow, an insurance contract?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
TIC 101.051(b)(6)(H) includes transacting a matter after the effectuation of the contract that arises out of the contract among the acts that constitute the business of insurance in this state, and the list also reaches forwarding an application before the contract is made. The definition is not confined to the moment of sale, which is why unlicensed post-sale activity can still be a violation.
Why the other options are wrong
- A) The statutory list expressly reaches beyond the point of sale.
- C) The test is the nature of the act, not whether the person happens to be appointed.
- D) The insurer's authorization status does not change whether the person's own acts require a license.
Memory hook
Before, during and after the sale, the definition follows you.