Health insurance license in Texas: Everything you need to know

If you’re planning to sell health insurance in Texas, you need to obtain a license from the Texas Department of Insurance (TDI). A health insurance license allows you to sell health insurance policies to individuals and groups in Texas. In this article, we’ll provide a comprehensive guide to obtaining a health insurance license in Texas.

What is a health insurance license?

A health insurance license is a state-issued license that allows you to sell health insurance policies to individuals and groups. In Texas, if you want to sell health insurance, you need to hold a health insurance license issued by the TDI. The license authorizes you to sell health and accident insurance policies in the state of Texas.

The TDI issues two types of health insurance licenses: agent license and adjuster license. An agent license allows you to sell health insurance policies, while an adjuster license allows you to process and adjust claims related to health insurance policies.

How to obtain a health insurance license in Texas

Obtaining a health insurance license in Texas involves a series of steps, including pre-licensing education, passing an examination, and submitting an application. Here’s a step-by-step guide to obtaining a health insurance license in Texas:

Step 1: Meet the eligibility requirements

To obtain a health insurance license in Texas, you need to meet the following eligibility requirements:

Step 2: Complete pre-licensing education

Before you can take the licensing examination, you need to complete pre-licensing education courses. You can choose to take the courses online or in-person. The courses cover topics related to health insurance, such as policy provisions, types of policies, and sales practices.

You need to complete at least 20 hours of pre-licensing education in Texas. However, if you hold a current license in another state or have a chartered life underwriter (CLU) designation, you may be exempt from pre-licensing education.

Step 3: Pass the licensing examination

After completing pre-licensing education, you need to pass the licensing examination. The examination consists of 150 questions, and you have 3 hours and 15 minutes to complete it. You need to score at least 70% to pass the examination.

You can schedule the examination online or by phone. The examination fee is $56.

Step 4: Submit an application

After passing the licensing examination, you need to submit an application for a health insurance license. You can apply online through the National Insurance Producer Registry (NIPR) or by submitting a paper application to the TDI.

The application fee for a health insurance agent license is $50. The application fee for a health insurance adjuster license is $50 for residents and $150 for non-residents.

FAQ

1. Can I apply for a health insurance license if I have a criminal record?

It depends on the nature of your criminal record. If you have any felony convictions or any misdemeanors involving fraud or dishonesty, you may not be eligible for a health insurance license. However, the TDI reviews each application on a case-by-case basis, so it’s best to contact the TDI directly to discuss your eligibility.

2. Is pre-licensing education required for a health insurance license in Texas?

Yes, you need to complete at least 20 hours of pre-licensing education in Texas before you can take the licensing examination.

3. How long is a health insurance license valid in Texas?

A health insurance license is valid for two years in Texas. You need to renew your license before it expires to continue selling health insurance in Texas.

4. Can I apply for a health insurance adjuster license if I already have a health insurance agent license?

Yes, you can apply for a health insurance adjuster license even if you already have a health insurance agent license. However, you need to complete the requirements for both licenses separately.

5. How much does it cost to renew a health insurance license in Texas?

The renewal fee for a health insurance agent license is $50. The renewal fee for a health insurance adjuster license is $50 for residents and $150 for non-residents.

Conclusion

Obtaining a health insurance license in Texas can be a complex process, but it’s essential if you want to sell health insurance policies in the state. By following the steps outlined in this article, you can ensure that you meet the eligibility requirements, complete pre-licensing education, pass the licensing examination, and submit an application. Once you have obtained your license, you will be authorized to sell health insurance policies to individuals and groups in Texas.