State RegulationsTX specificDifficulty 2/5
Dana holds a Texas life, accident, and health agent license and begins soliciting for a new insurer that has not yet filed her appointment. Under TIC 4001.201-.206, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under TIC 4001.201-.206, holding an agent license and holding an appointment are two separate requirements: the department licenses the individual, and each insurer the agent represents must appoint that individual and file the appointment on the day solicitation begins. Practically, a licensed but unappointed agent has no authority to act for that insurer, and it is the insurer — not the agent — that must make the filing and that bears the primary exposure when it is missed.
Why the other options are wrong
- A) An agent cannot appoint herself by notifying the department; appointment is the insurer's act and the insurer's filing.
- B) The license establishes the person's qualifications; it does not by itself supply authority to represent a particular insurer.
- D) The appointment filing is not retroactive under the statute; it must be made when solicitation begins, so a later filing does not erase the earlier violation.
Memory hook
Your license is who you are; your appointment is who you sell for.