Texas Insurance Code 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.
Terms Used In Texas Insurance Code 4053.051
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) Notwithstanding Subsection (b), the managing general agent shall execute on the insurer’s behalf a contract entered into with an agent.