Becoming An Insurance Broker: Texas Requirements And Steps

If you're looking to become an insurance broker in Texas, there are a few steps you need to take. First, you'll need to earn a high school diploma or GED, and while it's not required, a bachelor's degree in a related field can improve your career prospects. Next, you'll need to complete a pre-licensing course and pass the Texas licensing exam. After that, you'll need to pass a background check and apply for your Texas insurance license. It's also important to note that you'll need to renew your license every two years and complete continuing education credits.

Earn a high school diploma

To become an insurance broker in Texas, you need to earn a high school diploma or GED. This is the minimum educational requirement to qualify for a Texas insurance license.

While in high school, it is beneficial to take courses that can provide a foundation for your future career as an insurance broker. Consider enrolling in classes that can help you understand insurance policies and procedures or develop your customer service skills. Specifically, courses in business, law, finance, or communication are recommended. These subjects can give you valuable insights into the world of insurance and help you build essential skills for interacting with clients and navigating the industry.

Additionally, gaining knowledge about insurance-related topics during high school can better prepare you for future steps in your career path, such as taking pre-licensing courses or pursuing a bachelor's degree in a related field. Remember, earning a high school diploma or GED is a crucial first step towards becoming a licensed insurance broker in Texas and setting yourself up for success in the insurance industry.

Furthermore, earning a high school diploma or GED is a prerequisite for advancing your education and pursuing a bachelor's degree. While a bachelor's degree is not mandatory for becoming an insurance broker in Texas, it can be advantageous. A degree in business, economics, finance, or marketing can enhance your understanding of insurance and strengthen your skill set. During your college years, you may also have the opportunity to intern with an insurance agency, allowing you to observe experienced brokers, interact with clients, and conduct insurance-related research.

Consider a bachelor's degree

While a bachelor's degree is not required to become an insurance broker in Texas, earning one can certainly advance your knowledge of insurance and strengthen your skill set. It is worth noting that a college degree in finance, business, or risk management may improve your career prospects. A bachelor's degree can provide you with a solid foundation of knowledge and skills that will be beneficial in your career as an insurance broker.

When considering a bachelor's degree, you may want to look into majors such as business, economics, finance, or marketing. These degrees can provide valuable insights into the world of insurance and business. For example, a degree in business can help you understand the fundamentals of running a business, including marketing, finance, and customer service, all of which are essential aspects of being an insurance broker. Economics and finance degrees can give you a strong understanding of financial markets, investments, and risk management, which are crucial when dealing with insurance policies.

During your degree, you may also have the opportunity to complete an internship with an insurance agency. This can be incredibly advantageous as it will allow you to gain first-hand experience in the industry and observe experienced brokers as they work with clients and perform research. You will be able to see the day-to-day operations of an insurance broker, including how they help clients select the right insurance policies to meet their needs. This practical experience can be invaluable when you begin your career as an insurance broker.

Furthermore, a bachelor's degree can also help you develop important transferable skills, such as communication, critical thinking, and analytical abilities. These skills are highly valued in the insurance industry and can set you apart from other candidates. They can help you effectively communicate complex insurance information to your clients, analyse their needs, and make informed recommendations.

While earning a bachelor's degree is not mandatory, it can undoubtedly enhance your knowledge and skills, making you a more competitive candidate in the insurance broker job market. It demonstrates your commitment to the field and can open up more career opportunities. Therefore, if you have the time and resources, pursuing a bachelor's degree before becoming an insurance broker in Texas could be a worthwhile investment in your future career.

Complete a prelicensing course

To become an insurance broker in Texas, you must complete a prelicensing course. The Texas Department of Insurance approves several prelicensing courses throughout the state, which can be completed online or in person. These courses are designed to increase your insurance knowledge and prepare you for the licensure exam.

In your prelicensing course, you will learn about the fundamentals of insurance and gain information about various insurance specialties, including life, health, auto, property, and casualty insurance. By enrolling in a reputable provider's course, you will have access to engaging lectures, comprehensive textbooks, and customer support to enhance your learning experience.

The duration of the course can vary, with some providers offering self-study options that allow you to study at your own pace. However, it is important to note that temporary licenses require the completion of 40 hours of prelicensing education within 14 days of applying for the license.

The cost of prelicensing courses may differ, but they are a crucial step in your journey to becoming an insurance broker in Texas. These courses will provide you with the knowledge and confidence to pass the licensing exam and ensure that you are well-prepared to meet the requirements of your future role.

Once you have successfully completed your chosen prelicensing course, you will receive a certificate of completion. This certificate is a crucial document that you must present when applying for your state insurance license. Remember to keep it safe and easily accessible for your future licensing process.

Take the licensing exam

To become an insurance broker in Texas, you must pass a licensing exam. The Texas Department of Insurance approves several prelicensing courses that can help prepare you for the exam. These courses can be completed online or in person and cover the fundamentals of insurance and different insurance specialties, including life, health, auto, property, and casualty insurance. Once you finish the course, you'll receive a certificate of completion that you can submit when applying for your license.

The licensing exam is provided by Pearson VUE and includes the General Lines Life and Health, General Lines Property and Casualty, Personal Lines Property and Casualty, and Life Agent exams. The Texas Department of Insurance allows you to take the exam from home, using your personal software and webcam, with an off-site proctor observing you. The exams consist of two sections with multiple-choice questions. The first section covers basic insurance information, while the second section focuses on specific insurance regulations, strategies, and laws.

Passing the exam requires a score of at least 70% on both the national and state-specific sections. Your test will be scored immediately after you finish, and you'll know right away if you've passed. If you don't pass, you can retake the exam the next day by making an appointment. However, if you pass, you must apply for your license online within a year.

It's important to note that there are five types of insurance licenses available in Texas. The exam you take will depend on the type of insurance you plan to sell. For example, if you want to sell property and casualty insurance, you must take the associated exam and then apply for that specific license.

Pass a background check

To pass a background check as part of the process of becoming an insurance broker in Texas, you must visit the Texas Department of Public Safety to provide your fingerprints and answer questions about your criminal background. You can include a copy of your completed background check when applying for your license.

You can schedule an appointment with IdentoGO to get electronic fingerprint images. The fee for fingerprinting processing is $34.95, in addition to the fee of $9.95 charged by the State Police or by companies authorized by TDI to take fingerprints. You must remit payment of $9.95 at the time your fingerprints are taken and remit the $34.95 processing fee to TDI when sending in your application.

Fingerprinting will be available at most test sites through the fingerprint vendor IdentoGO.

Frequently asked questions