Selling Auto Insurance In Texas: Strategies For Success

If you're interested in selling auto insurance in Texas, you'll need to get a license. The state of Texas requires anyone selling insurance policies or discussing insurance matters with customers to have a license. To get a license, you'll need to complete a pre-licensing course and pass a state licensing exam. The Texas Department of Insurance offers a temporary 90-day license for those who haven't passed the exam yet, but you'll need a sponsoring licensed insurance company and must complete 40 hours of pre-licensing education within 14 days of applying. The exams aren't easy, so it's recommended to take a preparation course. Once you've passed your exam, you can apply for your license, but there is an additional fee.

Get a general lines – property and casualty license

To sell auto insurance in Texas, you need to get a General Lines – Property and Casualty license. Here's a detailed guide on how to obtain this license:

Enroll in a Pre-licensing Course:

Although Texas does not require pre-licensing education, it is highly recommended that you enroll in a study course due to the difficulty of the licensing exam. You can choose between online and in-person courses, each with its own benefits. Online courses offer flexibility and affordability, while live courses provide a traditional classroom setting with instructor access.

Register and Prepare for the Exam:

Once you've completed your pre-licensing course, register for the Texas licensing exam by visiting the Pearson VUE website. The exam consists of 150 questions, including 100 scorable and 15 pre-test questions on national/general content, as well as 30 scorable and 5 pre-test questions on Texas state-specific content. You will need a score of at least 70% on both the national and state sections to pass.

Get Fingerprinted:

Most applicants are required to undergo a fingerprint background check from IdentoGO and submit the receipt to the Texas Department of Public Safety. However, some individuals may be exempt from this requirement, as outlined in the Texas Administrative Code.

Apply for Your License:

After passing the exam, you can apply for your General Lines – Property and Casualty license. The application fee is typically $50 for Texas residents. You will need to provide specific information, such as fingerprints, proof of education, and other documentation. The application process can be completed through the Sircon or National Insurance Producer Registry website.

Plan for Continuing Education:

To maintain your license and stay ahead in your career, plan to complete the required insurance continuing education (CE) credits. Staying up-to-date with CE requirements will ensure you adhere to Texas's regulations for insurance producers.

Pass the Texas Licensing Exam

To sell auto insurance in Texas, you must pass the state licensing exam. Here's a detailed guide to help you prepare for and pass the Texas insurance licensing exam:

Enroll in a Pre-Licensing Course

Although not mandatory, it is highly recommended that you complete an educational course to prepare for your exam. The Texas Department of Insurance requires you to take an approved pre-licensing course to be eligible for the insurance licensing exam. You can choose between online and in-person courses, depending on your preference and learning style. Online courses offer flexibility, while live courses provide a traditional classroom experience.

Register for the Exam

Once you've completed your pre-licensing course, it's time to register for the Texas insurance exam. You can schedule your exam online with Pearson VUE, the state's testing provider, or by calling them. Remember that payment is not accepted at the testing centre, so be sure to take care of the required fees beforehand.

Get a Fingerprint Background Check

Most license candidates in Texas need to undergo a fingerprint background check. Schedule an appointment with IdentoGO and provide the necessary information. You will also need to send a copy of the IdentoGO receipt to the Texas Department of Public Safety.

Take and Pass the Exam

The Texas insurance licensing exam is administered in-person at a Pearson VUE testing site. On the day of your exam, bring two valid forms of government-issued identification, such as a driver's license, passport, or military ID. One of these must include your photograph and signature. The exam consists of a national section and a state-specific section, and you need a passing score of 70% on both parts.

Apply for Your License

After successfully passing the exam, you need to apply for your insurance license by paying the required fee. You must apply within one year of passing the examination. With your license in hand, you can start selling auto insurance in Texas!

Remember that the insurance licensing exam is not easy, so give yourself the best chance of passing by thoroughly preparing with a pre-licensing course and studying the exam materials. Good luck!

Get fingerprinted

To sell auto insurance in Texas, you must complete a fingerprinting and background check. This is a mandatory step in the process of obtaining a Texas insurance license. Here is a detailed guide on how to get fingerprinted:

Step 1: Submit Your Initial Application

To initiate the fingerprinting process, you must first submit your initial application for a Texas insurance license. This can be done through the Texas Department of Insurance (TDI) online initial application and fingerprint portal. Provide the required fingerprinting information and indicate your intent to apply for the license.

Step 2: Register and Schedule an Appointment

Once your application is registered, you will receive an email with a service code. This service code is essential for the next steps. Go to the IdentoGO website or call (888) 467-2080 to schedule your fingerprinting appointment. IdentoGO is an electronic fingerprinting service with locations across Texas and the country. When booking, be sure to use the service code provided by TDI.

Step 3: Attend the Fingerprinting Appointment

During your scheduled appointment at an IdentoGO location, remember to bring a valid photo ID and the required payment. The accepted forms of payment include Visa, MasterCard, Discover, and American Express credit cards. Personal checks and cash are not accepted. Your fingerprints will be electronically sent to the Texas Department of Public Safety (DPS) and the Federal Bureau of Investigation (FBI) for a background check.

Step 4: Receive and Submit the Receipt

Upon completion of your fingerprinting appointment, IdentoGO will provide you with a receipt. It is crucial that you do not discard this receipt. Attach a copy of the receipt to your insurance license application for TDI. Keep the original receipt for your own records.

Alternative Method: Hard Card Ink Fingerprints

If electronic fingerprinting is unavailable or inaccessible, you can opt for hard card ink fingerprints. Begin the license application process on the TDI online fingerprint portal to obtain your fingerprint service code, TDI ORI number, and instructions. You can request a hard card by filling out a form online or by calling IdentoGO and providing the necessary service code. After receiving the confirmation document from IdentoGO, proceed to obtain your fingerprints from a criminal law enforcement agency, such as a Department of Public Safety office, sheriff's office, or police station. Ensure that you bring your photo ID to the fingerprinting location.

Obtain FBI cards for your fingerprints, and have them signed by both yourself and the official taking your fingerprints. Mail the completed FBI fingerprint card and the confirmation document to IdentoGO at the provided address. They will then mail a receipt to you, which you should attach to your license application. Keep the original receipt for your reference.

Apply for a Texas Insurance License

Once you have completed the necessary pre-licensing course and passed your state licensing exam, you can apply for your Texas insurance license. You can do this by using the Sircon or National Insurance Producer Registry website. The application fee is $50.

You must apply for your license within a year of passing your exam. If you don't, you will need to retake the exam.

If you are applying for a resident agent license, you must pass the state licensing exam before applying. If you apply before passing the exam, you will need to submit a new application and pay the application fee again.

If you are applying for a resident agency license, you will need to provide the following:

• A Texas DRLP (designated responsible licensed producer): at least one officer or active partner who holds a Texas general lines – life, accident, health and HMO license.
• Information for all executive officers, directors, or partners who administer the agency’s operations in Texas.
• Information for all individuals and entities in control of the agency’s operations.
• Registration with Texas Secretary of State.
• Proof of financial responsibility: a bond or an Errors & Omissions policy.
• Fingerprints for non-licensed officers, directors, etc.
• Limited partnerships and limited liability partnerships must provide a copy of your partnership agreement.
• If using a DBA, be sure to include a copy of your certified Articles of Incorporation or Articles of Organization and include all amendments.

If you are applying for a non-resident license, you need an active general lines, life, accident, health and HMO license in good standing in your resident/home state.

Enrol in a pre-licensing course

To sell auto insurance in Texas, you must be licensed. The Texas Department of Insurance requires you to take an approved pre-licensing course to be eligible to take the insurance licensing exam.

Enroll in a pre-licensing course

When choosing a pre-licensing course, you will need to decide between an online or in-person course. Online courses are generally more practical, affordable, and accessible 24/7, allowing you to study at your own pace. On the other hand, live courses are held in a classroom setting, providing access to an instructor and a structured learning environment.

When selecting an online course, consider the following:

• Course material and teaching methods: Ensure the course covers the necessary topics and utilizes interactive activities such as videos, quizzes, and exams for effective learning.
• Instructor availability: Choose a course that provides support and allows you to contact the instructor for clarification or assistance.
• Student testimonials: Look for courses with positive testimonials and reviews from previous students.
• Time and access: Opt for courses that offer flexible access and the option to extend your subscription if needed.
• Pricing: Compare prices, but also consider the value offered, including course materials, customer service, and additional resources.

Online insurance pre-licensing courses in Texas typically range from $75 to $150, providing excellent value for the career opportunities they unlock.

Once you've selected and enrolled in a pre-licensing course, you'll be well on your way to gaining the knowledge and skills needed to pass the insurance licensing exam and embark on a rewarding career in the insurance industry.

Frequently asked questions