State RegulationsTX specificDifficulty 3/5
A licensed Texas agency owner dies unexpectedly, leaving a book of renewal business. Under TIC 4001.151-.156, what is the purpose of a temporary license in this situation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 4001.151-.156 the Commissioner may issue a temporary license when a licensed agent dies, becomes disabled or otherwise cannot continue to act, so that a surviving spouse, personal representative or other qualified designee can keep the business operating and protect policyholders for a limited period. The temporary license is a bridge, not a transfer: it does not convey ownership of the book of business and does not permanently excuse the designee from the examination requirements that apply to permanent licensees.
Why the other options are wrong
- A) A temporary license is limited in duration and does not permanently transfer the decedent's license.
- B) Insurers must still act through properly licensed and appointed individuals; a temporary license does not remove that requirement.
- C) The temporary license is a stopgap, not a permanent waiver of the examination requirement.
Memory hook
A temporary license is a bridge, not a handover.