Tex. Ins. Code § 841.260 · Subchapter F. GENERAL POWERS, DUTIES, AND LIMITATIONS
PROHIBITED COMMISSIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "contingent compensation" means a commission or other compensation an insurance company pays to a person that is contingent on:
(1) the writing or procurement of an insurance policy in the company;
(2) the procurement of an application for an insurance policy in the company;
(3) the payment of a renewal premium; or
(4) the assumption of an insurance risk by the company.
(b) A life insurance company that engages in the business of insurance in this state may not, directly or indirectly, pay or contract to pay a contingent compensation to:
(1) the president, vice president, secretary, or treasurer of the company;
(2) any other officer of the company, other than an agent or solicitor;
(3) an actuary of the company; or
(4) a medical director or other physician of the company whose duty is to examine risks or applications for insurance for the company.
(c) This section does not prohibit a plan of compensation to a marketing officer according to the total amount of insurance the insurance company writes or to the total amount of insurance in force with the insurance company during a specified period if:
(1) the commissioner approves the plan under Subchapter A, Chapter 805;
(2) the marketing officer is not responsible for underwriting, rating, or otherwise approving the acceptability of insurance risks; and
(3) the plan does not compensate the marketing officer according to commissions on individual sales of any insurance product.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.841.htm
- Text hash
- sha256 c2cf5d9975c03e458d42a4374568c1b998fe612ebbea901f8b698b3a8bb709ab
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.