An insurer with no office, agents, or property in Texas mails a life insurance policy to a person who lives in El Paso. Under TIC 101.051, what is the result?

Why B is correct

Under TIC 101.051, issuing or delivering a contract of insurance to a resident of Texas is transacting the business of insurance in this state, and the statute does not require the insurer to maintain an office, agent, or property here. Delivery to the Texas resident is itself the act. Practically, the insurer must hold a Texas certificate of authority — or qualify for a lawful exception such as surplus lines placement — before the policy is delivered, because the absence of physical presence is not a defense to transacting business without authority.

Why the other options are wrong

• A) Transacting is complete on issuance or delivery of the contract; it does not depend on the insured signing and returning the policy.
• C) Physical presence is not required under the statute; issuance or delivery to a Texas resident supplies the Texas contact.
• D) A choice of law provision may govern interpretation of the contract, but it does not remove the delivery from the reach of TIC 101.051.

Memory hook

Mailing a policy into Texas is doing business in Texas.