Paul Sanchez
If you're looking to become a licensed auto insurance agent in Texas, there are a few key steps you need to follow. Firstly, you'll need to obtain a Texas insurance license, which involves completing a pre-licensing education course and passing the relevant Texas insurance license exam. This exam will cover both national and state-specific sections, and you'll need a passing score of 70% on both parts. After that, you'll need to complete a fingerprint and background check, which can be done through IdentoGO. Once you've passed the exam and completed the background check, you can submit your insurance license application, along with the required fees. It typically takes around 3-5 weeks for the application and background check to be reviewed and processed. Keep in mind that maintaining your license will require completing continuing education credits and paying a renewal fee every two years.
| Characteristics | Values |
|---|---|
| Education requirements | A high school diploma or GED is required to qualify for a Texas insurance license. A bachelor's degree is not mandatory but can improve your knowledge of insurance and strengthen your skill set. |
| Pre-licensing course | A pre-licensing education course is not mandatory in Texas but is highly recommended as it increases your chances of passing the exam. |
| Exam | You need to pass the relevant Texas Insurance License Exam(s) for the insurance specialty you plan to pursue. |
| Background check | A background check is required to obtain a Texas insurance license. You can do this by providing your fingerprints and answering questions about your criminal background. |
| Application | You can apply for a Texas insurance license on the National Insurance Producer Registry's website. |
What You'll Learn
Enroll in a pre-licensing course
Enrolling in a pre-licensing course is an essential step in your journey to becoming a licensed auto insurance agent in Texas. While Texas does not require aspiring insurance agents to complete a set number of pre-licensing education hours, it is highly recommended. A pre-licensing course will dramatically increase your chances of passing the licensing exam on your first attempt, saving you time and money.
There are several factors to consider when choosing a pre-licensing course. Firstly, decide whether you prefer an online or in-person course. Online courses offer flexibility, often with 24/7 accessibility, allowing you to study at your own pace. They are typically more affordable and save you travel costs. On the other hand, live courses provide the structure of a classroom setting and direct access to an instructor. If you are not tech-savvy or prefer in-person instruction, a live course may be preferable.
When selecting a course, consider its flexibility, price, and the provider's reputation. Ensure the course offers sufficient resources and reliable content to enhance your understanding of the material. Check reviews and testimonials from previous students to gauge the quality of the course and its instructors.
Additionally, inquire about the course material's delivery format. Most quality online courses utilize interactive activities, such as videos, quizzes, and practice exams, rather than relying solely on textbooks. Interactive content can improve your comprehension and retention of the information.
The cost of pre-licensing courses in Texas typically ranges from $75 to $150. While considering the price, remember that investing in a quality course can significantly impact your exam preparation and future career.
Lastly, remember that the pre-licensing course is just the first step in your journey. After completing the course, you will need to register for the Texas insurance licensing exam and pay the required fees. The exam consists of a national section and a state-specific section, and you must achieve a passing score of 70% on both parts.
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Pass the Texas Insurance License Exam
Passing the Texas Insurance License Exam is a crucial step in becoming a licensed auto insurance agent in Texas. Here are some detailed instructions and tips to help you prepare for and pass the exam:
Exam Format and Content:
The Texas Insurance License Exam consists of two parts: a national section and a state-specific section. All questions are in multiple-choice format, with no fill-in or essay questions. The exam covers a range of topics, including definitions, dollar amounts, number of days, and practical situations. About one-third of the questions are terminology-based, one-third focus on numbers and days, and the remaining one-third require you to apply your knowledge to practical scenarios.
Preparation and Study Tips:
Enrolling in a pre-licensing education course is highly recommended and increases your chances of passing the exam on your first attempt. These courses offer live tutoring, study calendars, and practice exams to enhance your understanding of the material. When choosing a course, consider factors such as flexibility, price, and the provider's reputation. Additionally, taking practice questions and sample exams can help familiarize you with the test format and identify areas that need improvement.
Registration and Scheduling:
Once you feel prepared, the next step is to register for the exam by contacting Pearson VUE, the testing company, at least three days in advance of your preferred exam date. The registration process includes paying the required fees. The Texas Department of Insurance charges $50 for all license types or $150 for a temporary license.
Exam Day:
On the day of the exam, arrive at the test center with proper identification and any necessary equipment. The exam is computerized, and proctors will provide instructions and assistance as needed. You will have ample time to complete the exam, and it will be scored immediately upon completion. A passing score is 70% or higher on both the national and state sections combined.
Results and Next Steps:
You will receive your results immediately after completing the exam. If you pass, you can proceed to apply for your insurance license by submitting the required application and paying the associated fee. If you don't pass, you will need to wait 24 hours before scheduling a retake. It's important to start the process over again, as passing the exam is crucial to obtaining your license and starting your career as an insurance agent in Texas.
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Complete a background check
To become a licensed auto insurance agent in Texas, you will need to complete a background check as part of the licensing process. This is a mandatory step to confirm that you meet the state's insurance agent regulations.
The background check involves getting your fingerprints taken and submitting them to the relevant authorities. Specifically, you will need to schedule an appointment with IdentoGO, a company that provides electronic fingerprinting services. During your appointment, they will capture your fingerprint images and provide you with a receipt. This receipt is crucial, as you will need to attach a copy to your license application for the Texas Department of Insurance (TDI). Keep the original receipt for your records as well.
The cost of the fingerprinting service and background check is $41.45. When booking your appointment with IdentoGO, be sure to use the service code 11G6QF. This code is essential, as it allows the fingerprinting agency to identify the specific background check requirements for insurance agents in Texas. Your background check will not be valid without this code.
It is important to note that any misdemeanors or felonies on your record may impact your ability to obtain an insurance agent license in Texas. If you have concerns or questions about this, you can contact the Texas Department of Insurance for guidance. They can be reached by phone at (512) 676-6500 or by email at [email protected].
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Submit your application
Once you have passed your exams and completed your fingerprinting, you can submit your application for an insurance license in Texas. Applications are submitted online through Sircon or the National Insurance Producer Registry for a fee of $50 (plus a small transaction charge). You will also need to include the fingerprint receipt given to you by IdentoGo for the Texas Department of Insurance to accept your application.
If you have passed the licensing exams for multiple lines of authority, you will need to submit an application (and pay a filing fee) for each of these.
Paper applications or applications submitted through the National Insurance Producer Registry (NIPR) will incur a printing fee.
After submitting your application, the Texas Department of Insurance will review it. If everything is filled out correctly, your license should be issued within three to five weeks. This is the typical amount of time it takes for a license application and background check to be reviewed.
However, if there are any items from your background check that need to be looked over, the issuance of your insurance license may take longer. In this case, the state will likely contact you to provide some context.
Once the review is complete, the state will send you an email regarding the status of your license.
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Maintain your license
Maintaining your license is crucial to continue working legally as an insurance agent in Texas and avoiding fines. Here are the steps to maintain your license:
Continuing Education Requirements:
To renew your Texas insurance license, you must complete continuing education requirements. Most types of Texas insurance agents need to finish 24 hours of continuing education every two years, including 3 hours of ethics and consumer protection. However, there are exceptions for certain types of insurance agents, such as those dealing with limited lines, small value life, and county mutual insurance, who only need to complete 10 hours per renewal term.
Stay on Top of Your Hours:
It is essential to keep track of your continuing education hours. The state of Texas charges a $50 fine for each hour of continuing education not completed before the license expiration date, with a maximum fine of $500 per license if it expired after June 1, 2018. To avoid fines and ensure timely processing, it is recommended to finish your hours at least 30 days before your license expires.
Classroom and Classroom-Equivalent Hours:
The continuing education requirements include taking "classroom" or "classroom-equivalent" courses. However, you don't need to physically attend a classroom, as the Texas Department of Insurance (TDI) has approved certain providers to offer classroom-equivalent courses online, giving you the flexibility to complete your hours at your convenience.
License Renewal:
To renew your Texas insurance license, you have several options. If your renewal is due on the same day, you must use the Sircon renewal platform and pay a fee of $8.25. If you have five days until your renewal, you can opt for the National Insurance Producer Registry, which charges a $5 processing fee. To avoid extra fees, submit your renewal at least 15 days before it is due through the TDI renewal portal, which has no processing fees. Regardless of the method, renewing your license costs $50, and there is a $25 late fee if you don't pay by the expiration date.
Keep Contact Information Up to Date:
Remember to update your contact information, legal name, or business name and address with the TDI if any changes occur.
Check for Exemptions and Extensions:
If you have been continuously licensed in Texas for 20 years or more without interruption, you may be eligible for a CE exemption. Additionally, if you meet specific criteria, such as illness, medical disability, or military deployment, you may apply for an extension to complete your CE requirements.
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Frequently asked questions
You need to obtain a Texas insurance license. To do this, you must complete a pre-licensing education course, pass the relevant Texas Insurance License Exam, complete a fingerprint and background check, and submit your insurance license application.
While it is not necessary to have a bachelor's degree, it may be beneficial to have one in business, economics, finance, or marketing. A high school diploma or GED is required to qualify for a Texas insurance license.
In Texas, it costs $50 to submit an insurance licensing application to the Department of Insurance and $41.45 to request a background check. There is also a small transaction fee.
You need a passing score of 70% on both the national and state-specific sections of the exam.
You can start selling insurance! You may also need to obtain relevant securities licenses, choose whether to work as a captive agent or an independent agent, develop your marketing approach, and keep your license valid by completing continuing education requirements.
