State RegulationsTX specificDifficulty 2/5
Under TIC 4001.151-.156, what is the purpose of a temporary license?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4001.151-.156, the Commissioner may issue a temporary license so that the insurance business of an agent who has died, become disabled, or otherwise cannot continue may be carried on for a limited period by a person who has not yet satisfied the regular licensing requirements. Practically, it is a genuine stopgap: it is limited in duration and scope, and it does not mature into a regular license unless and until the holder independently satisfies the standard eligibility and examination requirements.
Why the other options are wrong
- A) A trainee or new hire must meet the ordinary prelicensing education and examination requirements; a temporary license is not a way to sell before qualifying.
- C) An insurer's permission to transact business comes from a certificate of authority under Chapter 801; a temporary agent license cannot supply it.
- D) A person licensed in another state who moves to Texas is handled under the nonresident and resident licensing provisions, not under the temporary license provisions.
Memory hook
A temporary license carries on someone else's book after death or disability.