State RegulationsTX specificDifficulty 1/5
Under TIC 101.051, which of the following activities is part of the business of insurance in this state?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
TIC 101.051(b) lists the acts that constitute the business of insurance in this state, including taking or receiving an insurance application, receiving or collecting any consideration for insurance, and acting as an agent in soliciting, negotiating, procuring, or effectuating insurance. Clerical data entry with no discussion of coverage and the mere handing out of a business card do not reach those listed acts.
Why the other options are wrong
- B) Clerical entry with no insurance discussion is not soliciting, negotiating, or effectuating insurance.
- C) General educational material that does not present or effectuate a specific contract is not on the statutory list.
- D) Passing along a name or card without discussing coverage does not reach the listed acts.
Memory hook
Sell it, solicit it, or take money for it - that is transacting.