A temporary license holder can receive a commission from a sale made to all of the following EXCEPT:

Disable ads (and more) with a premium pass for a one time $4.99 payment

Study for the Texas Personal Lines Insurance Test. Prepare with multiple choice questions, flashcards, and detailed explanations. Ensure you're ready for your exam!

A temporary license holder in Texas is subject to specific regulations regarding who they can receive commissions from. Generally, state guidelines are in place to prevent conflicts of interest. Commission compensation is permitted for sales made to individuals who have no close familial or personal relationship with the temporary license holder, ensuring that sales are conducted fairly and without undue influence.

The correct answer, the license holder's sister-in-law, is specifically excluded because she is considered a close family member. The relationship not only falls within the definition of immediate family but also poses the potential for biased sales practices. In contrast, a neighbor or a previous client do not have such directly related ties that would compromise the integrity of the transaction, allowing the temporary license holder to receive commissions from them. Consequently, while sales to family members can often complicate the commission structure, transactions with neighbors or previous clients remain accepted under Texas insurance regulations.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy