Getting an insurance license in Texas is a great way to further your career in the insurance industry. It may seem like a complicated process, but with the right information, it can be a breeze. In this article, we will discuss everything you need to know about obtaining an insurance license in Texas.
Why Do You Need an Insurance License in Texas?
Before we dive into the specifics of obtaining an insurance license in Texas, let’s first understand why it is important to have one. In Texas, it is illegal to sell, solicit, or negotiate insurance without a valid license. By obtaining an insurance license, you will be able to legally perform these activities and earn commissions from insurance sales.
Additionally, having an insurance license gives you credibility in the eyes of potential clients. It shows that you have undergone the necessary training and have the knowledge to provide sound insurance advice.
What Types of Insurance Licenses Can You Obtain in Texas?
In Texas, there are two types of insurance licenses you can obtain:
General Lines Agent
This license allows you to sell any type of property and casualty insurance.
Life and Health Insurance Agent
This license allows you to sell life, accident and health insurance policies.
It is worth noting that some states require additional licensing for specialized areas of insurance, such as property and casualty, or personal lines insurance. However, in Texas, a General Lines Agent license allows you to sell any type of property and casualty insurance.
Steps to Obtain an Insurance License in Texas
Now that we have covered the basics, let’s dive into the steps you need to take to obtain an insurance license in Texas. There are several steps involved in the process, so it’s important to stay organized and be prepared.
Step 1: Meet the Eligibility Requirements
Before you can begin the process of obtaining an insurance license in Texas, you must meet the eligibility requirements. These requirements include:
- Being at least 18 years old
- Have a valid Social Security number
- Not having any felony convictions
- Not having any misdemeanor convictions within the last five years
Step 2: Complete Pre-License Education
Once you have confirmed that you meet the eligibility requirements, the next step is to complete pre-license education. In Texas, you are required to complete 40 hours of pre-license education for each line of authority you wish to obtain a license for.
Fortunately, there are several options for completing your pre-license education. You can choose to take an in-person course, online course, or self-study course. You can find a list of approved pre-license education providers on the Texas Department of Insurance website.
Step 3: Pass the Licensing Exam
After completing your pre-license education, the next step is to pass the licensing exam. The exam consists of two parts: a state-specific portion and a national portion. You must pass both parts of the exam with a score of at least 70% to obtain your insurance license in Texas.
The licensing exam is administered by Pearson VUE and can be taken at various testing centers throughout Texas. You will need to schedule your exam in advance and pay a fee to take the exam.
Step 4: Submit Your License Application
Once you have passed the licensing exam, the final step is to submit your license application. You can submit your application online through the Texas Department of Insurance website.
Along with your application, you will need to provide proof of completing your pre-license education, passing the licensing exam, and paying the required fees. Once your application has been processed and approved, you will receive your insurance license in the mail.
Frequently Asked Questions
How long does it take to get an insurance license in Texas?
The length of time it takes to get an insurance license in Texas varies depending on how quickly you complete each step of the process. On average, it takes around 4-6 weeks to complete all the requirements and receive your insurance license.
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 are applying for. As of 2021, the fees are as follows:
- General Lines Agent: $50 application fee + $63 exam fee
- Life and Health Insurance Agent: $50 application fee + $63 exam fee
Do I need to renew my insurance license in Texas?
Yes, you are required to renew your insurance license in Texas every two years. To renew your license, you must complete 24 hours of continuing education, including 2 hours of ethics training.
Can I transfer my insurance license to Texas?
If you currently hold an insurance license in another state, you may be able to transfer your license to Texas. The process for transferring your license varies depending on the state you are coming from. You can find more information on the Texas Department of Insurance website.
What happens if I fail the licensing exam?
If you fail the licensing exam, you are allowed to retake the exam. There is a waiting period of at least 24 hours before you can retake the exam. You are allowed to retake the exam up to three times before you are required to complete additional pre-license education.
Obtaining an insurance license in Texas is a great way to take your career in the insurance industry to the next level. While the process may seem daunting, it is manageable if you stay organized and follow the steps outlined above. By obtaining an insurance license, you will be able to legally sell, solicit, and negotiate insurance policies, which can lead to a fulfilling and lucrative career in the industry.