Tex. Ins. Code Section 4001.158
Replacement of Existing Life Insurance or Annuity Contract Prohibited

(a)

A temporary license holder who is acting under the authority of that license may not:

(1)

engage in an insurance solicitation, sale, or other agency transaction that the license holder knows or should know will result or is intended to result in:

(A)

the purchase of a new life insurance or annuity contract; and

(B)

any of the following actions with regard to an existing individual life insurance or annuity contract as a result of that purchase:
(i)
termination of the contract by lapse, forfeiture, surrender, or other means;
(ii)
conversion of the contract to reduced paid-up insurance, continuation of the contract as extended term insurance, or reduction in value of the contract by the use of nonforfeiture benefits or other policy values;
(iii)
amendment of the contract to reduce:
(a)
benefits; or
(b)
the term for which coverage would otherwise remain in force or for which benefits would be paid;
(iv)
reissuance of the contract with a reduction in cash value; or
(v)
pledge of the contract as collateral or subjection of the contract to borrowing, whether in a single loan or under a schedule of borrowing, for amounts that in the aggregate exceed 25 percent of the loan value prescribed by the contract; or

(2)

directly or indirectly receive a commission or other compensation that results or may result from a solicitation, sale, or other agency transaction described by Subdivision (1).

(b)

A person who holds a permanent license may not circumvent or attempt to circumvent the intent of this section by acting for or with a person holding a temporary license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.

Source: Section 4001.158 — Replacement of Existing Life Insurance or Annuity Contract Prohibited, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­4001.­htm#4001.­158 (accessed Jun. 5, 2024).

4001.001
Purpose 4001.002
Applicability 4001.003
Definitions 4001.004
Limited Liability Companies 4001.005
Rules 4001.006
Fees 4001.007
Investigation of Alleged Violations 4001.008
Commissioner Agent for Service of Process 4001.051
Acts Constituting Acting as Agent 4001.052
Solicitor of Application for Insurance Considered Agent of Insurer 4001.053
Personal Liability for Acting as Agent 4001.054
Liability of Agent and Insurer for Taxes 4001.101
License or Certificate of Authority Required 4001.102
License Application 4001.103
Failure to Provide Complete Set of Fingerprints: Ground for Denial of Application 4001.104
Issuance of License: Intent to Actively Engage in Business of Insurance for General Public 4001.105
Issuance of License to Individual 4001.106
Issuance of License to Corporation or Partnership 4001.107
Issuance of License to Depository Institution 4001.108
Issuance of License to Entity Chartered by Federal Farm Credit Administration 4001.151
Authority to Issue Temporary License 4001.152
Examination Not Required 4001.153
Application for and Issuance of Temporary License 4001.154
Authority to Act as Agent Pending Receipt of Temporary License 4001.155
Term of Temporary License 4001.156
Restriction on Issuance or Renewal of Temporary License 4001.157
Obtaining Certain Commissions Prohibited 4001.158
Replacement of Existing Life Insurance or Annuity Contract Prohibited 4001.159
Suspension or Revocation of Temporary Appointment Powers of Agent, Insurer, or Health Maintenance Organization 4001.160
Training of Applicant for Temporary License 4001.161
Duty to Ensure that Applicants Take Licensing Examination 4001.162
Restriction on Appointment of Temporary License Holders 4001.201
Appointment Required 4001.202
Appointment by Multiple Insurers 4001.203
Term of Appointment 4001.204
Authority to Act as Agent Before Notice of Appointment 4001.206
Termination of Appointment of Agent for Cause 4001.251
Incorporation of Sole Proprietorship 4001.252
Notification to Department of Certain Information 4001.253
Restriction on Acquisition of Ownership Interest in Entity Licensed as Agent 4001.254
Maintenance of Qualifications 4001.255
Maintenance of Records 4001.301
Profits After Death of Agent Who Is Member of Agency Partnership 4001.302
Profits After Death of Agent Who Is Sole Proprietor 4001.303
Profits After Death of Shareholder of Corporate Agency 4001.304
Transfer of Interest in Agency by Agent Who Is Sole Proprietor 4001.305
Transfer of Interest in Agency by Shareholder of Corporate Agency 4001.351
Applicability 4001.352
Authority to Issue Provisional Permit 4001.353
Application for and Issuance of Provisional Permit 4001.354
Authority to Act as Agent Under Provisional Permit 4001.355
Term of Provisional Permit 4001.356
Notification Regarding License 4001.357
Denial or Revocation of License 4001.358
Compliance with Other Law 4001.359
Supervisory Responsibility
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 4001.158’s source at texas​.gov