Renewing Texas Life Insurance: License Renewal Simplified

Renewing your Texas life insurance license requires careful planning and timely execution to avoid late fees and penalties. The renewal process involves completing continuing education (CE) requirements and submitting a renewal application and fees. Let's explore the steps you need to take to ensure a smooth and successful license renewal.

Required continuing education hours

To keep your Texas life insurance license active, you must complete continuing education (CE) requirements before your license expiration date. Texas insurance licenses expire every two years on the last day of your birth month. To renew your license, you must complete 24 hours of CE every two years. This includes three hours in the subject of ethics or consumer protection, with two hours dedicated to ethics. If your license expired on or before August 31, 2022, you only need two hours of ethics training.

At least 12 hours of your CE must be "classroom" or "classroom equivalent" courses, meaning that the instructor and students interact remotely via video conferencing or similar technology in a classroom format. However, you don't need to physically attend a classroom to meet these requirements, as the Texas Department of Insurance (TDI) has approved certain continuing education providers to offer classroom-equivalent courses online.

You can take CE courses at any time during each two-year term, but you must complete them before midnight Central Time (CT) on your license expiration date to avoid fines and delays in your license renewal. It is recommended to complete CE hours at least 30 days before your license expires to ensure there is no delay. This allows time for the CE providers to report the successful completion of the course to the TDI.

If you don't complete your CE hours in time, there is a $50 fine per hour, up to a maximum of $500 per license type if your license expired after June 1, 2018. There is no cap on fines for terms that expired before this date. These fines must be paid in addition to completing your CE hours before you can renew your license.

Renewing platforms and fees

The Texas Department of Insurance (TDI) requires most types of Texas insurance license holders to complete 24 hours of continuing education (CE) to renew their license before expiration. This includes 3 hours in the subject of ethics or consumer protection and 12 hours of classroom education or "classroom equivalent".

To renew your Texas insurance license, you have a few options:

• Texas Department of Insurance renewal portal (free, if done more than 30 days before renewal)
• Sircon renewal platform ($8.25 processing fee)
• National Insurance Producer Registry (NIPR) ($5 processing fee)

The renewal fee is $50 per line of authority. To avoid late fees, you must complete CE hours and apply for renewal at least 30 days before your license expires. The late fee is $75 per line of authority.

If you have less than 30 days to renew, you can use either Sircon or NIPR. NIPR charges $5.60 for processing while Sircon charges $8.25.

If you have more than a month to renew, you can use the Texas Department of Insurance portal.

Avoiding late fees

To avoid late fees when renewing your Texas life insurance license, it's important to be aware of the deadlines and plan ahead. Here are some key tips to help you avoid late fees:

Know the Deadlines:

Your Texas life insurance license needs to be renewed every two years, and the expiration date is usually your birthday in the next even-numbered year. Check your license to determine the exact renewal date and year. This information is printed directly on the license. Knowing this date will help you stay organized and ensure you don't miss any deadlines.

Complete Continuing Education Requirements:

To renew your license, you must complete the required continuing education (CE) hours. In Texas, insurance agents are typically required to complete 24 hours of CE every two years. However, there are exceptions for certain types of insurance agents. Be sure to check with the Texas Department of Insurance to confirm the specific requirements for your license type. Complete your CE hours well in advance of the deadline to avoid any last-minute issues.

Submit Your Renewal Application on Time:

The renewal application must be submitted within the specified time frame. In Texas, the renewal window is usually 60 days before the license expiration date. Submit your application through the NIPR TX Agent Renewal or Sircon TX Agent Renewal portal. Completing and submitting your application on time will help you avoid late fees.

Plan for Processing Times:

When choosing a renewal platform, consider the processing fees and times. The Texas Department of Insurance renewal portal has no processing fees, but it requires more than 30 days until your renewal date. If you're closer to your renewal date, you can use the Sircon renewal platform, which charges an $8.25 processing fee. Alternatively, if you have five days or more until your renewal, the National Insurance Producer Registry charges a $5 processing fee. Planning ahead gives you more platform options and helps you avoid late fees.

Pay the Renewal Fee:

The standard renewal fee for a Texas life insurance license is $50 per line of authority. This fee must be paid before the expiration date to avoid late fees. Late renewal fees can be as high as $75 per line of authority. Make sure to pay the renewal fee on time through NIPR or Sircon using a credit card, electronic check, or your preferred online payment method.

By following these steps and staying organized, you can effectively avoid late fees when renewing your Texas life insurance license. Remember to plan ahead, complete your CE hours, submit your application within the specified window, and pay the renewal fee on time.

Special training requirements

There are some special training requirements that you need to be aware of when renewing your Texas life insurance license. These requirements apply to specific types of insurance products and must be completed in addition to the standard continuing education (CE) requirements. Here are the key special training requirements to keep in mind:

• Flood Insurance: Agents who sell flood insurance are required to complete a one-time three-hour continuing education course related to the National Flood Insurance Program. This course will provide you with specific knowledge and skills related to flood insurance policies and the National Flood Insurance Program.
• Long-Term Care Partnership Policy: If you are selling long-term care partnership policies, you need to complete an initial eight-hour training course. Following this, you must take a four-hour long-term care course every two years to stay up-to-date with the latest developments in this area.
• Annuity Products: For agents selling annuity products, an initial four-hour annuity best interest course is required. After that, you need to complete eight hours of continuing education during each renewal period to maintain your knowledge and skills in this field.

These special training requirements are crucial to ensure that you have the necessary expertise to advise your clients effectively and comply with regulatory requirements. By completing these training programs, you can enhance your professional capabilities and better serve your customers' needs. Remember to plan and allow sufficient time to complete these requirements before your license renewal deadline.

Exemptions and extensions

The Texas Department of Insurance (TDI) offers certain exemptions and extensions for insurance license renewals. If you have been continuously licensed in Texas for at least 20 years without interruption, you may be exempt from completing the Continuing Education (CE) requirements. To apply for this exemption, you must submit a request through the Sircon website at least two weeks before your license expires.

Non-residents of Texas are generally exempt from CE courses if they are in good standing in their resident state. However, if your resident state does not require CE, you must follow Texas rules.

Extensions for completing CE hours can be requested through the Sircon website under "Services" in the Education Services section. Like the exemption request, this must be submitted at least two weeks before your license expires.

Remember that even if you are granted an exemption or extension, any CE fines paid are non-refundable.

Frequently asked questions