Insurance License in Texas: Everything You Need to Know

Getting an insurance license in Texas can be a great way to start a career in the insurance industry. However, there are many requirements and regulations that you need to be aware of in order to obtain and maintain your license. In this article, we will explain everything you need to know about getting an insurance license in Texas.

What is an Insurance License?

Before we dive into the specifics of getting an insurance license in Texas, it’s important to understand what an insurance license is and why it’s required. An insurance license is a legal authorization that allows an individual or business to sell insurance products in a specific state. Without a license, it’s illegal to sell insurance in Texas, or any other state for that matter.

The reason for this is simple: insurance is a highly regulated industry. The state of Texas, like most states, has established rules and regulations that govern the sale of insurance products. Insurance licenses are one way for the state to ensure that those selling insurance are knowledgeable, ethical, and trustworthy.

What Types of Insurance Licenses are Available in Texas?

There are several types of insurance licenses available in Texas. The specific type of license you need will depend on the type of insurance you plan to sell. Here are some of the common types of insurance licenses in Texas:

How to Get an Insurance License in Texas

The process for getting an insurance license in Texas is fairly straightforward, but it can be time-consuming and requires some preparation. Here are the steps you need to follow:

Step 1: Meet the Basic Requirements

Before you can apply for an insurance license in Texas, you need to meet some basic requirements. These include:

• Being at least 18 years old
• Having a valid Social Security number or Taxpayer Identification Number
• Completing pre-licensing education
• Passing a state licensing exam

The specifics of these requirements will vary depending on the type of license you’re applying for. For example, the pre-licensing education requirement for a general lines agent is 40 hours, while the requirement for a life and health agent is 60 hours.

Step 2: Complete Pre-Licensing Education

Once you’ve met the basic requirements, you’ll need to complete pre-licensing education. This is a series of courses that cover the topics you’ll need to know for the licensing exam. The courses can be taken online or in-person, and you’ll need to pass an exam at the end of each course.

The specific courses you’ll need to take will depend on the type of license you’re applying for. In general, you can expect to take courses in insurance principles, policy provisions, and state regulations.

Step 3: Pass the Licensing Exam

After completing pre-licensing education, you’ll need to pass a state licensing exam. The exam is administered by Pearson VUE, a testing company contracted by the Texas Department of Insurance. The exam will cover the material you learned in your pre-licensing courses and will include both multiple-choice and scenario-based questions.

You’ll need to pass the exam with a score of at least 70% in order to obtain your license. If you fail the exam, you’ll need to wait at least 24 hours before retaking it. You’ll also need to pay a fee each time you take the test.

Step 4: Apply for Your License

Once you’ve passed the licensing exam, you can apply for your license. You’ll need to submit an application to the Texas Department of Insurance and pay a fee. You’ll also need to provide proof of your pre-licensing education and exam results.

It can take several weeks for your license application to be processed. Once it’s approved, you’ll be issued a license number and can begin selling insurance products as a licensed agent.

FAQ

How much does it cost to get an insurance license in Texas?

The cost of getting an insurance license in Texas varies depending on the type of license you’re applying for. In general, you can expect to pay between $150 and $300 for pre-licensing education and the licensing exam. You’ll also need to pay a fee when you apply for your license.

Do I need to renew my insurance license in Texas?

Yes, insurance licenses in Texas need to be renewed every two years. To renew your license, you’ll need to complete continuing education courses and pay a renewal fee. The specific requirements for continuing education will depend on the type of license you hold.

Can I sell insurance in Texas without a license?

No, it’s illegal to sell insurance in Texas without a license. Doing so can result in fines, legal action, and the revocation of your license if you do eventually obtain one.

Can I transfer my insurance license to Texas?

If you hold an insurance license in another state, you may be able to transfer it to Texas. To do so, you’ll need to submit an application to the Texas Department of Insurance and pay a fee. You may also need to complete some additional training or education depending on the specifics of your out-of-state license.

What kind of insurance products can I sell with a Texas insurance license?

The type of insurance products you can sell with a Texas insurance license will depend on the type of license you hold. General lines agents can sell a variety of insurance products, while life and health agents can only sell life and health insurance products, and property and casualty agents can only sell property and casualty insurance products.

How long does it take to get an insurance license in Texas?

The time it takes to get an insurance license in Texas can vary depending on several factors, including how quickly you complete your pre-licensing education and pass the licensing exam. In general, you can expect the process to take several weeks to a few months.