Dana works full time in the home office of a Texas insurer. She answers policyholders' billing questions, processes address changes and premium payments, and receives no commission; she never solicits or negotiates insurance. Under TIC 4002.003, what is Dana's licensing status?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4002.003, the license requirement does not reach a person whose activity is limited to administrative or clerical work for an insurer, who does not solicit or negotiate insurance, and who is not paid a commission on the business. Dana's duties of answering billing questions and processing changes and payments are ministerial rather than solicitation. The practical line is the activity and not the job title: the moment she begins explaining coverage to induce a purchase, or is compensated by commission, the exception stops applying and a license is required.
Why the other options are wrong
- A) The exemption is not conditioned on continuing education status; it is conditioned on the nature of the activity and the absence of solicitation and commission.
- C) Routine policy servicing and clerical handling of premiums is not acting as an agent; the exemption in TIC 4002.003 covers administrative work performed for the insurer without solicitation or commission.
- D) Accepting premium payments on behalf of the insurer does not convert an administrative employee into a limited lines agent when she does not solicit or negotiate the coverage.
Memory hook
The exemption follows the activity: no solicitation and no commission means no license needed.