§ 4053.051 — LICENSE REQUIRED; EXEMPTIONS.

Texas § 4053.051

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 4053.051. LICENSE REQUIRED; EXEMPTIONS. (a) Except as provided by Subsection (b), a person, firm, or corporation may not act as a managing general agent unless the person, firm, or corporation holds a license issued under this chapter.
(b) A business corporation is not required to hold a license issued under this chapter to act as a managing general agent if:
(1) the corporation is authorized to engage in business in this state;
(2) all of the corporation's outstanding stock is solely owned by an insurer authorized to engage in business in this state and the corporation's business affairs are completely controlled by that insurer;
(3) the principal purpose for which the corporation exists is to facilitate the accumulation of commissions from the insurer and its subsidiaries and affiliates for the account of and payment to an agent who could otherwise lawfully receive the commissions directly from the insurer and its subsidiaries and affiliates; and
(4) the corporation does not engage in any other act of a managing general agent as provided by this chapter.
(c) Notwithstanding Subsection (b), the managing general agent shall execute on the insurer's behalf a contract entered into with an agent.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.