Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOHard
A Texas-licensed agent is convicted of a felony involving fraud. What is the agent's primary obligation regarding this conviction, according to Texas insurance law?
- AAppeal the conviction and only notify the TDI if the appeal fails.
- BNotify the Commissioner of Insurance within 30 days of the conviction.
- CImmediately surrender their license to the TDI.
- DWait for the TDI to discover the conviction during a routine audit.
Show answer & explanationAnswer & explanation
Correct answer: B. Notify the Commissioner of Insurance within 30 days of the conviction.
Texas law requires a licensed agent to notify the Commissioner of Insurance within 30 days of the entry of a final judgment or order against the agent in a criminal proceeding, especially for a felony. This is a mandatory self-reporting requirement.
Why the other options are wrong
- A. This is incorrect; the obligation to notify exists regardless of an ongoing appeal process.
- C. While license surrender might eventually occur, the immediate primary obligation is notification, not automatic surrender.
- D. This is incorrect; agents have a proactive duty to report, not wait for discovery.
Felony Conviction Reporting
A Texas-licensed agent must notify the Commissioner of Insurance within 30 days of any final judgment or order in a criminal proceeding, especially for a felony.
- Applies to criminal proceedings resulting in a final judgment or order.
- Mandatory self-reporting requirement.
- Specific timeframe for notification to the Commissioner.
Memory trick: Felony conviction, thirty days to confess, or face more distress.