Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOMedium
An insurance agent is licensed in Texas for Life, Accident, Health, and HMO. The agent decides to stop selling insurance and retire. What is the agent's responsibility regarding their license if they wish to surrender it?
- ANo action is required; the license will expire on its own renewal date.
- BNotify the TDI within 30 days of the decision to cease business and keep the license for personal records.
- CNotify the Texas Department of Insurance (TDI) within 90 days and return the original license.
- DReturn the license to the TDI immediately after deciding to cease operations.
Show answer & explanationAnswer & explanation
Correct answer: D. Return the license to the TDI immediately after deciding to cease operations.
According to Texas insurance regulations, if an agent decides to surrender their license, they must return it to the Texas Department of Insurance (TDI) immediately. This ensures that the TDI is aware the agent is no longer authorized to conduct insurance business.
Why the other options are wrong
- A. Incorrect. Active steps are required to formally surrender a license.
- B. 30 days is incorrect, and keeping the license is not permitted for surrender.
- C. 90 days is incorrect; immediate return is required for surrender.
License Surrender
The formal process by which an insurance agent voluntarily gives up their license to the Texas Department of Insurance (TDI).
- Requires immediate return of the license to TDI.
- Voluntary action by the licensee.
- Different from license expiration or revocation.
Memory trick: To stop selling, the license must immediately land back at the TDI.