Texas State law portion

for a corporation to be licensed

at least one officer of the corporation or one of its active partners and all other persons performing acts of an agent must be individually licensed

what can the department do if a property and casualty agent dies, becomes disabled, or is found to be insolvent and unable to pay for premiums due

it can issue, without examination, an emergency license on receipt of proof satisfactory to the department that the emergency license is necessary to preserve the agency assets

pending the hearing, what happens to the order

it continues in full force unless the order is stayed by the Commissioner

a person firm or corporation cannot act as a MGA unless what

it holds a license

if the department has not been advised of any adverse selection, what can the applicant presume about the temp license

it is approved and he may begin working as an agent on the 8th day after the application was mailed to the department

the following requirements must be met for a corporation or partnership to be licensed

it must be organized under the laws of Texas or another state or territory of the US, it must be admitted to do business in Texas by the secretary of state, its articles of incorporation or its partnership agreement must authorize it to act as an agent

an insurer may withdraw some of the deposit required with doing business in another state if what

it satisifes the commissioner that it does not have any unsecured liabilities outstanding or potential liabilities to policyowners in other states subject to the commissioner's approval

the penalty for a violation

may not exceed $25000 unless a greater or lesser penalty is specified by law

the training required for the annuity course

must be of a length sufficient to qualify for at least four continuing education credits

can an agent hold more than one license of the same type currently in effect

no

can someone who isn't intending to apply for a license to sell insurance to the general public

no

do stock companies pay dividends

no

reinsurance reserves for certain insurers

on 12/31 of every year, the department of insurance will compute the reinsurance reserve for all unexpired risks of every insurer doing business in Texas

risk manager

paid to examine, assess, or evaluate risks for anyone who seeks to obtain or renew property and casualty coverage in Texas

if following the hearing the commissioner finds that a violation did occur, the person may

pay the penalty or petition for judicial review (appeal)

a property and casualty agent may also change a client a reasonable service fee for expenses such as

phone, postage, and other items permitted by law

an MGA may perform any of the following acts for a company or carrier

receive and pass upon daily reports and monthly accounts, receive and be responsible for agency balances, handle the adjustment of losses, or appoint or direct local recording agents, state agents, or special agents within Texas

if a person fails to pay a penalty the commissioner may

refer the matter to the attorney general for enforcement or cancel or revoke any permit, license, or certificate

in addition to the other duties required of the texas department of insurance, the department shall

regulate the business of insurance in Texas, administer the worker's comp system of Texas, ensure that this code and other laws regarding insurance are executed, protect and ensure the fair treatment of consumers, and ensure fair competition

a property and casualty agent may change a client a service fee to do what

reimburse the agent for actual costs as specifically enumerated in and in accordance with Texas law

a person affected by an emergency cease and desist order can contest the order by doing what

requesting a hearing before the commissioner within 30 days after receiving the order

cease and desist orders

requires violators of the Texas insurance code to cease and desist immediately from prohibited acts, methods, or practices

the commissioner will order an insurer to remedy an impairment of the insurer's surplus by doing what

restoring it to an acceptable level or to cease doing business in Texas

if the commissioner pursues action to impose an administrative penalty what must the commissioner do

serve notice of the time and place of hearing to be held not earlier than 21 days after the notice is received

texas law defines an agent as a person who is authorized to

solicit, receive or transmit an application, advertise that he will receive or transmit an application, transmit a policy, examine a risk, receive premium, take any other action in the making of insurance, or examine, adjust, or aid in adjusting a loss for or on behalf of an insurer

transacting insurance in Texas includes

soliciting, taking or transmitting applications, receiving and delivering polices, examining and inspecting risks or adjusting losses for an insurer, collecting premiums, and performing any other acts in making contracts

in addition to imposing an administrative penalty, the Commissioner is authorized to

suspend the violator's authorization for at max a year, order the holder of the authorization to cease and desist from prohibited activity, direct the holder of the authorization to make restitution or take any combo of these actions

insurers may not appoint any person to act as their agent unless what

that person is licensed

a certificate of authority indicates

that the insurer has met the Department's standards and is qualified to transact insurance business in Texas

what happens if the person doesn't pay the administrative penalty and the enforcement of the penalty is not stayed pending review

the Commissioner may refer the matter to the attorney general for collection

at the hearing who has the burden of proof to show why the order should be affirmed

the Department of insurance

a managing general agent doesn't include an agent licensed under another section of the code unless what

the agent accepts 50% or more of his total annual business or $500,000 or more of total annual business, whichever is less, from policies produced and sold by other agents

an agent may not solicit the sale of an annuity product unless

the agent has adequate knowledge of the product to recommend the annuity and is in compliance with the insurer's standards for product training

a property and casualty agent may not change a service fee unless what

the agent notifies the client of the service fee and obtains the client's written consent for each item charged under the service fee prior to the local recording agent incurring an expense on behalf of the client

the notice that the department gives to the affected person must include

the alleged violation, the recommended penalty, and notice of the affected person's right to a hearing

the department may deny an application for an authorization if

the applicant fails to provide a complete set of fingerprints on request by the department

electronic transfers and the commissioner

the commissioner regulates the electronic transfer of any fee, guaranteed fund, or other money owed or held for the state. the commissioner will require the electronic transfer of any such amount that exceeds $500,000

the commissioner may ask about what before he issues a certificate of authority

the competence, fitness, and reputation of an insurer's officers and directors

a business corporation is not required to hold a license to act as a MGA if

the corporation is authorized to engage in business in Texas, all of the corporation's stock is owned by an insurer authorized to engage in business in Texas and the corporation's business affairs are controlled by that insurer, the reason the corporation exists is to facilitate the gathering of commissions from the insurer for the account of and payment to an agent who could otherwise lawfully receive the commissions directly, the corporation doesn't engage in any other act of MGA as provided by this chapter

frequency of examination

the department may examine a carrier as frequently as necessary, and at least once every five years

temporary license

the department may issue a temporary license to an applicant for a lease who is being considered for appointment as an agent by an organization and doesn't have to take the written exam

what has to happen before granting a certificate of authority

the department must be satisfied that the insurer is qualified

Commissioner of insurance

the department of insurance's chief executive and administrative officer

what happens if the department of insurance receives a written complaint filed against an insurer or producer

the department will, at least quarterly and until the matter is resolved, notify each party to the compliant of the complaint's status unless doing so would jeopardize an undercover investigation

who appoints the commissioner of insurance and for how long

the governor for a two-year term ending February 1 of each odd-numbered year

no insurer may conduct business in Texas unless what

the insurer has received a certificate of authority from the Department of Insurance

what happens if the person against whom the order was entered files a motion for stay of the cease and desist order

the motion for stay must be heard on or before the date of the hearing to show cause

a cease and desist order must contain

the name and last known address of the person against whom the order is entered, a short statement of the immediate danger presented by the prohibited conduct and of the factual bases of the order, a statement of the rights of the person, a statement of the penalties which may be assessed, and a requirement that the person immediately cease and desist from the acts stated

a person is required to hold an insurance service representative license if

the person is a salaried employee who performs assigned duties only in an office of a property and casualty agent, including: explaining insurance coverage, describing an insurance product, quoting premium rate, issuing binders only with the express approval of the property and casualty agent who supervises the license holder

the amount of the penalty will be based on

the seriousness of the violation, the economic harm to the public interest or public confidence cause by the violation, the history of previous violations, the amount necessary to deter a future violation, efforts to correct the violation, whether the violation was intentional, any other matter that justice may require

when two or more agents holding active licenses of the same type advertise jointly, any solicitation put forth an one agent or any policy, binder, certificate of insurance, endorsement, invoice, or billing must clearly and exactly identify what

the specific agency making the solicitation or servicing the insurance account in question

if an individual is authorized to act as a particular type of agent, what do they need to do about license

they need not obtain an additional license in order to participate in a licensed partnership or corporate agency of the same type, but the partnership or corporation must obtain a separate license

nonadmitted carriers

those carriers who don't have a certificate of authority

these MGA regulations do not apply to

transacting life, health, and accident insurance, including variable life insurance and variable annuity contracts; a full-time salaried employee of an insurer acting for and in connection with the insurance business of the insurer; or an adjuster or inspector of risks for an insurer

a temp license doesn't permit an agent to

write any personal or controlled business on the agent or a family member or replace any existing life or annuity contract

for a corporation or partnership to be licensed, they must be able to pay up to what which it may become obligated to pay by either what or what

$25000, by either an errors and omissions policy of at least $250,000 with a deductible of no more than 10% of the benefit amount or by a $25,000 surety bond

the commissioner must provide how much in a surety bond

$50,000

an agent or insurer receiving an examination inquiry must respond to the inquiry in writing within how many days

10 days

the hearing must be held within how many days after the date the commissioner receives the request

10 days

after reporting a violation to the Commissioner, the department must give written notice of the report to the affected person within how many days

14

a person affected by an order of the commissioner may appeal the order by filing suit within how many days

20 days

if the commissioner denies or revokes a certificate of authority the insurer is granted a hearing to review the matter within how many days

30 days

a temporary license is valid for how many days after the date of issuance

90 days

how long is the emergency license valid for and how long can it be renewed for

90 days, 90 days

the commissioner must be what

a competent and experienced administrator, be well informed about insurance and insurance regulation, and have at least 5 years experience as an executive in the administration of business or government or as a practicing attorney or CPA

a temp license may not be issued or renewed by the same person more than once during what period

a consecutive 6-month period

an agent's license can be issued to

a natural person, a corporation, or a partnership

the commissioner may impose an administrative penalty on who

a person licensed or regulated under Texas law who violates any law, rule, or order

the term agent doesn't include

a regular salaried officer or employee of an insurer who devotes substantially all working time to activities other than the solicitation of applications for insurance, doesn't receive commission, doesn't solicit or accept from the public applications for insurance; or a depository institution to the extent that the institution collects and remits premiums by charging those premiums against accounts of depositors on the orders of those depositors

A licensed nonresident agent has the same rights and privileges as whom

a resident license holder

to act as an insurance agent in Texas a person must have what

a valid Texas insurance license for the type of insurance involved

within 20 days after receiving the notice of violation, the person may

accept the department's determination of the administrative penalty, or request a hearing on the occurrence of the violation, the amount of the penalty or both

general powers and duties of the commissioner of insurance

administers, enforces, and carries out the provisions of the Texas insurance code and other applicable laws, including the calculation of insurance reserve

at the hearing what does the commissioner do to the order

affirms, modifies, or sets it aside

payment to a temp license holder

an agent or insurer may not knowingly pay a temp license holder and a temp license holder may not receive or accept a commission on the sale of a contract of insurance to a person who has a family, employment, or business relationship with the temp license holder

the referral by an unlicensed person of a customer or potential customer to an agent is not an act of who

an agent unless the unlicensed person discusses specific insurance policy terms or conditions with the customer or potential cutomer

subagent

an agent who has been appointed by a general life, health, life insurance agent, general property and casualty agent, or personal property and casualty agent who is appointed by an insurance company authorized to do business in this state

a person is required to hold a personal lines proerpty and casualty license if the person acts as

an agent who writes property and casualty insurance sold to individuals and families primarily for personal or household use, or a subagent of a personal lines agent who solicits and binds insurance risks for that agent

the commissioner may issue an emergency cease and desist order if

an authorized person commits an unfair method of competition or a deceptive act or practice, an unauthorized person engages in the business of insurance, or it appears to the Commissioner that the alleged conduct is fraudulent or hazardous, endangers public safety, or can cause significant, imminent, and irreparable public injury

alien company

an insurer chartered, incorporated, and organized under the laws of another country but licensed to conduct insurance business in the US

domestic company

an insurer incorporated, chartered, and organized under the laws of a state where it is licensed to conduct insurance business and has its home office in the state where it is licensed

foreign company

an insurer licensed to conduct business in one state but incorporated, chartered, and organized under the laws of another state

mutual company

an insurer owned by its policyholders, share in the company profits by receiving dividends

stock company

an insurer owned by its stockholder, profit-motivated and its stockholders share in its profits

what does examinations of records do

analyze the insurer, its financial condition, its ability to meet its liabilities and its compliance with state laws

managing general agent

any person, firm, or corporation who has supervisory responsibility for the local agency and field operations of an insurance company or carrier within Texas, or is authorized on behalf of a company to accept or process insurance policies other agents produced and sold

an agent

anyone who transacts, solicits, or negotiates an insurance contract

a person who wishes to obtain a license must

by at least 18, pass the state exam, have not committed an act for which a license may be denied, and submit the application, nonrefundable fee, and any other information required by the department

capital stock of a stock insurance company

cannot be impaired

an agent who engages in the sale of annuity products must

complete a one-time training course approved by the department and provided by a continuing education provider

a domestic insurer required by another state to maintain a deposit as a condition of doing business there may do what

deposit enough funds with the state comptroller to satisfy the conditions of the other state and can withdraw all or part of this deposit is similar securities in an equal amount replace those withdrawn

the department shall issue a temp license immediately on receipt of a properly completed application executed by the applicant and accompanied by

filing fee of $150 and a certificate signed by an officer or properly authorized representative of an agent or insurer stating that the applicant is being considered for appointment by the agent or insurer, the agent or insurer desires that the applicant be issued a temp license, and the applicant will complete training under the agent or insurer's supervision

the department has the following powers regarding examinations

free access to all books and papers that relate to the carrier's business and affairs, authority to summon and examine under oath an employee of the carrier or any other person in relation to the carrier's affairs

when can a domestic insurer doing business in another state withdraw all of the deposit

if it has stopped doing business and the Commissioner approves the withdrawal

when can the commissioner revoke or modify a certificate of authority

if the insurer no longer meets the conditions required for granting the certificate, but he must give the insurer written notice at least 10 days before taking action and must specify the reasons for doing so

the commissioner may enter into an agreement with the appropriate official of another state as necessary to do what

implement reciprocal licensing of nonresident agents

after a hearing the commissioner may

impose an administrative penalty of $25000 for each violation, direct the violator to make complete restitution to each Texas person harmed by the violation, or impose the penalty and direct restitution

if the commissioner reasonably believes that a person has violated a cease and desist order, the Commissioner may

initiate proceedings to impose an administrative penalty, refer the matter to the attorney general for enforcement, initiate a proceeding to revoke the person's certificate of authority, or pursue any other action appropriate under applicable law

admitted carriers

insurance companies that have a certificate of authority from the Department of Insurance

who does the examination of records apply to

insurers authorized to transact business in Texas, including foreign insurers