Under Texas Insurance Law, the term 'transacting business' includes...

• A. advertising the insurer
• B. issuing new policies
• C. collecting premiums
• D. investing premiums

Answer: (C)

Transacting insurance business means actions that relate to the actual handling and administration of an insurance contract. Collecting premiums is part of maintaining the policy and fulfilling the insurer's obligations under the contract; it directly affects the contract and is therefore included as transacting. Advertising the insurer is marketing and doesn't itself administer a policy, while investing premiums concerns funds rather than the contract relationship. So collecting premiums best fits the idea of transacting the business.