State RegulationsTX specificDifficulty 3/5
A Texas agency tells its unlicensed receptionist to answer incoming calls, quote rates to applicants, and recommend which policy to buy, arguing that she is exempt under TIC 4002.003. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The exemptions in TIC 4002.003 are narrow and activity based: they cover limited clerical, administrative or referral-type activity, not the substance of selling. Quoting rates and recommending which policy to purchase is soliciting and negotiating insurance, so the receptionist must hold a Texas license to do it. Neither the location of the work, the form of compensation, nor after-the-fact review by a licensed agent converts a licensed activity into an exempt one, and the agency is responsible for allowing unlicensed solicitation.
Why the other options are wrong
- B) Review by a licensed agent does not permit an unlicensed person to solicit and negotiate.
- C) Where the work is performed and how the person is paid do not decide the exemption; the activity performed does.
- D) The form of compensation is not decisive; an unlicensed person may not solicit or negotiate whether paid by salary or commission.
Memory hook
Exemptions follow the activity, not the job title or the paycheck.