Power of Attorney Rule

Texas Department of Insurance Commission Bomer, in response to consumer complaints and in an attempt to curb unfair and deceptive practices by some licensed agents, adopted effective 8/29/96 a rule prohibiting agents from obtaining powers of attorney from insurance applicants.

The only exceptions permitted by the rule are powers of attorney obtained for:

  1. Activities for which the Texas Insurance Code expressly authorizes a person to obtain a power of attorney.
  2. Purposes related to personal lines coverages for an agent's relatives or household members.
  3. Premium financing where the power of attorney is in favor of a licensed premium finance company

Violations of the rule constitute an unfair practice subject to provision of Chapter 541 of the Insurance Code.

(Other references: RULE §21.901 Prohibition Against Solicitation or Acceptance of Power of Attorney - Texas Administrative Code)