Who may solicit or receive insurance applications in Texas?

Who may solicit or receive insurance applications in Texas?

• A. Anyone.
• B. Only individuals or entities with a license or certificate of authority.
• C. Only licensed property and casualty agents.
• D. Nonresident licensees may solicit.

Answer: (B)

The requirement being tested is that only licensed or authorized people may solicit or receive insurance applications. In Texas, you must hold a valid license as an insurance producer or be an entity that has a certificate of authority to transact insurance to perform these activities. This protects consumers by ensuring the person handling applications is knowledgeable about the products and compliant with state laws. Therefore, the best answer is that only individuals or entities with a license or certificate of authority may solicit or receive applications. Unlicensed individuals cannot solicit or receive applications, so the option claiming “anyone” is incorrect. Limiting to only licensed property and casualty agents is too narrow because licenses cover multiple lines (life, health, P&C, etc.), and the rule applies to any licensed producer or authorized entity, not just P&C specialists. While nonresident licensees may solicit, they must be properly licensed, which is already encompassed by the broader rule.

The requirement being tested is that only licensed or authorized people may solicit or receive insurance applications. In Texas, you must hold a valid license as an insurance producer or be an entity that has a certificate of authority to transact insurance to perform these activities. This protects consumers by ensuring the person handling applications is knowledgeable about the products and compliant with state laws. Therefore, the best answer is that only individuals or entities with a license or certificate of authority may solicit or receive applications.

Unlicensed individuals cannot solicit or receive applications, so the option claiming “anyone” is incorrect. Limiting to only licensed property and casualty agents is too narrow because licenses cover multiple lines (life, health, P&C, etc.), and the rule applies to any licensed producer or authorized entity, not just P&C specialists. While nonresident licensees may solicit, they must be properly licensed, which is already encompassed by the broader rule.