- (a) No agent may, within this state, solicit, procure, receive, or forward applications for life insurance or annuities, or issue or deliver policies for, or in any manner secure, help, or aid in the placing of a variable contract for any person other than himself or herself, directly or indirectly, with any insurance company not authorized to do a variable contract business in this state.
(b) Except as provided in this subsection, no person, partnership, or corporation shall act as an agent within this state until he, she, or it shall have procured a license as required by the laws of this state. No insurer or licensed agent doing business in this state shall pay directly or indirectly any commission, or other valuable consideration, to any person, partnership, or corporation for services as an agent within this state, unless such person, partnership, or corporation shall hold a currently valid license to act as an agent as required by the laws of this state; nor shall any person, partnership, or corporation, other than a duly licensed agent, accept any such commission or other valuable consideration; provided, however, that the provisions of this subsection shall not prevent the payment or receipt of renewal or other deferred commissions to or by any person, partnership, or corporation solely because such person, partnership, or corporation has ceased to hold a license to act as an agent; and also provided, that:
- (1) upon the death of a duly licensed variable contract agent who is a member of an agency partnership, the surviving spouse and children, if any, of such deceased partner, or a trust for such surviving spouse and children, may share in the profits of such agency partnership during the lifetime of such surviving spouse or children, as the case may be, if, and as, provided by a written partnership agreement, or, in the absence of any written agreement, if, and as, agreed by the surviving partner or partners and the surviving spouse, the trustee, and the legal representative of the surviving child or children. Such surviving spouse and any such surviving children or trusts shall not be required to qualify as variable contract agents to participate in such profits, but shall not do or perform any act of a variable contract agent on behalf of such partnership without having qualified as a variable contract agent; provided, however, that a duly licensed variable contract agent who is a member of an agency partnership may, with the approval of the other members of the partnership, transfer an interest in the agency partnership to his children or a trust for same, and may operate such interest in the agency partnership for their use and benefit; and such children or trusts may share in the profits of such agency partnership. Such child or children or trusts shall not be required to qualify as a variable contract agent to participate in such profits, but shall not do or perform any act of a variable contract agent on behalf of such partnership without having qualified as a variable contract agent;
- (2) upon the death of a duly licensed variable contract agent who is a sole proprietorship, unless otherwise provided by the last will of such deceased agent, the surviving spouse and children, if any, of such deceased agent, or a trust for such spouse or children, may share in the profits of the continuance of the agency business of said deceased agent, provided such agency business is continued by a duly licensed variable contract agent. Said surviving spouse, trusts, or children shall not be required to qualify as variable contract agents in order to participate in the profits of such agency, but shall not do or perform any act of a variable contract agent in connection with the continuance of such agency business without first having been duly licensed as a variable contract agent; provided, however, that a duly licensed variable contract agent who is a sole proprietorship may transfer an interest in his agency to his children, or a trust for same, and may operate such interest for their use and benefit; and such children may share in the profits of such variable contract agency during their lifetime, and during such time shall not be required to qualify as a variable contract agent in order to participate in such profits, but shall not do or perform any act of a variable contract agent in connection with such agency business without first having been duly licensed as a variable contract agent;
- (3) upon the death of a shareholder in a corporate licensed variable contract agency, the surviving spouse and children, if any, of such deceased shareholder, or a trust for such surviving spouse and children, may share in the profits of such corporate agency during the lifetime of such surviving spouse or children, as the case may be, if and as provided by a contract entered into by and between all of the shareholders and the corporation. Any such surviving spouse, surviving children, or trusts shall not be required to individually qualify as a variable contract agent in order to participate in such profits, but shall not do or perform any act of a variable contract agency on behalf of such corporation without having qualified as a variable contract agent; provided, however, that a shareholder in a corporate licensed variable contract agency, may, if provided by a contract entered into by and between all of the shareholders and the corporation, transfer an interest in the agency to his children or a trust for same, and such children or trusts may share in the profits of such agency to the extent of such interest during their lifetime. Such children or trusts shall not be required to qualify as a variable contract agent to participate in such profits, but shall not do or perform any act of a variable contract agent on behalf of such corporation without having qualified as a variable contract agent.
- (c) No licensed agent may assist, and/or conspire with a person, partnership, or corporation whose license as an agent has been suspended or revoked to engage in any acts of an agent.
Source Note:The provisions of this §19.708 adopted to be effective October 26, 1984, 9 TexReg 5385; amended to be effective April 2, 1987, 12 TexReg 954.