What type of insurance agent must supervise a funeral prearrangement life insurance agent?

In the context of funeral prearrangement life insurance in Texas, a legal reserve life insurance agent is the type of agent who must supervise a funeral prearrangement life insurance agent. This requirement ensures that the prearrangement sale of insurance products adheres to regulatory standards and guidelines governing the life insurance industry.

Legal reserve life insurance agents are licensed individuals authorized to sell policies that are backed by legal reserves – funds that must be maintained by the insurance company to ensure that it can meet its obligations to policyholders. This supervisory relationship is crucial because it ensures that the funeral prearrangement life insurance agent is operating within the legal framework and promoting products that are reliable, compliant, and beneficial to consumers.

The other types of agents mentioned, such as non-reserve, dual licensed insurance agents, and life insurance brokers, do not fit the specific requirement for supervision in this context, highlighting the importance of having a specialized oversight mechanism in place for the sensitive nature of funeral prearrangements.