Agent and Adjuster Licensing Notices
- NEW TDI Form FIN501, Notice of Appointment or Appointment Termination replaces the Scantron TDI 501 form. This form is used to report an insurer’s or agent’s appointment, or any termination of an appointment of an agent or subagent. For more information about appointments, please visit the Appointment Transactions page
- NEW Public Information - Open Record Requests
- NEW Types of Permits/Certificates Offered
- License Printing - Effective January 16, 2015, individuals have the ability to print their license via the internet
- Public Insurance Adjusters are required to be licensed in Texas
- National Insurance Producer Registry On-Line Address Change is available
- Nonresident - Electronic Licensing Resources
- The Texas Department of Insurance provides examination services through Pearson VUE, a TDI vendor
- The Texas Department of Insurance provides continuing education services through Pearson VUE, a TDI vendor
- Fingerprint Requirements and Instructions MUST be followed for all license types requiring a background check
- Pre-paid Legal Services registrations are handled by the Texas Department of Licensing and Regulation
- A Note About Returned Checks
- Zero Premium Life Insurance or No Cost to the Insured Plans
- Agent / Adjuster FAQs
Individuals now have the ability to print their own license via the internet. Licensees may utilize Compliance Express or Producer EDGE to print a copy of their license. For more information, refer to Commissioner's Bulletin #B-0002-15.
Effective March 1, 2015, licenses are no longer sent via postal mail.
Public Insurance Adjusters are required to be licensed in Texas
The Public Insurance Adjuster Law (SB127 of the 78th Legislative Session) became effective on June 11, 2003. Article 21.07-5 Section 3 (a) requires that: "A person may not act as a public insurance adjuster in this state or hold himself or herself out to be a public insurance adjuster in this state, unless the person holds a license or certificate issued by the commissioner under Section 5, 15, or 16 of this article."
- Examination: There is no provision in statute that would allow a Public Insurance Adjusters (PIA) to qualify for a license by taking a pre-license course. Such courses may or may not be useful to prepare for the PIA License Qualifying test. Get information about testing, get a license application, or schedule an examination by contacting Pearson VUE. Visit http://www.pearsonvue.com/tx/insurance/ or call them toll free at (888) 754-7667.
- Bond Form: A Public Insurance Adjuster must have a $10,000 Public Insurance Adjuster's bond. the FIN509, Public Insurance Adjuster Bond form can be downloaded from our website.
- The statute: Review Senate Bill 127.
- The rule: Review the Public Insurance Adjuster rule.
- Public insurance adjusters charge fees to help negotiate claim settlements with insurance companies. The public insurance adjuster fee is normally a percentage of the claim settlement and therefore is paid out of settlement monies received from an insurer.
- If a claim is settled within 72 hours of the date the loss is reported to the insurance company, the public adjuster is entitled only to reasonable compensation for time and expenses.
- The public adjuster's fee may not exceed 10 percent of a claim settlement and must be disclosed in the public adjuster written contract.
- Public adjusters may not give legal advice.
The public adjuster may not participate, either directly or indirectly, in the reconstruction or repair of damaged property that is the subject of a claim adjusted by the public adjuster.
Texas is the 28th state to begin accepting electronic nonresident Licensing (eNRL) applications through the National Insurance Producer Registry (NIPR), an affiliate of the National Association of Insurance Commissioners.
Some of the reasons for insurers and individuals to use electronic nonresident Licensing (eNRL) are:
- Certification is done automatically by NIPR.
- Ability to file in multiple states with one application.
- Application is pre-screened against data in NIPR's PDB database.
- Is usually up to 6 days faster than non-electronic filing.
- NIPR sends automatic email when Texas issues license.
Examination scheduling, examination administration, and fingerprinting services for all agent and adjuster license exams may be obtained from Pearson VUE. You may also retrieve exam service information, as well as the Candidate Handbook, exam content outlines, contact phone numbers, testing locations, scheduling information, and fees from their website, Pearson VUE, or by telephone at (888) 754-7667.
The Texas Department of Insurance provides continuing education services through Pearson VUE.
Providers must report all Texas CE credits earned to the department's Continuing Education Compliance Contractor, Pearson VUE. Providers must enter roster reports on-line through Sircon Compliance Express. Compliance Express automatically generates completion certificates for providers; the hours submitted are recorded in a system that tracks each individual licensee's progress toward meeting the department's CE requirements. Providers can also enter new and revised courses on-line and register new providers. Providers are able to post information about actual course offerings each time a classroom course is given. This posting shows addresses, dates, and provider contact information. The Sircon system also reports all non-compliant individuals to the department for administrative action.
Two important links for providers and licensees:
- Pearson VUE Continuing Education landing page: http://www.asisvcs.com/indhome.asp?CPCAT=CE44INS
- Sircon for Education Providers: https://www.sircon.com/products/education/index.html
NOTE: The fingerprint receipt will contain either a TCN# or UE ID#. The current electronic application requires the TCN#. If your Fingerprint Receipt contains a UE ID#, you may obtain your TCN# at http://uenroll.identogo.com and check the status of your fingerprint process.
DO NOT ATTEMPT TO SUBMIT AN ELECTRONIC APPLICATION BEFORE OBTAINING A FINGERPRINT RECEIPT.
Review TDI’s Fingerprint Requirements and Instructions:
Review the Commissioner's Bulletin here: Commissioner’s Bulletin No. B-0030-15
Insurance licensees are not authorized to sell for-profit prepaid legal services contracts under their insurance agent's license.
Senate Bill 597, 78th Regular Texas Legislative Session, transferred the regulation of for-profit prepaid legal services contracts from the Texas Department of Insurance to the Texas Department of Licensing and Regulation - For-Profit Legal Services Contracts. The bill did not transfer or cancel any insurance agent's license. An insurance agent license that was used for selling pre-paid legal insurance contracts continued in force until it expired, was canceled on request of the agent, or is/was revoked by TDI. A person wishing to keep an insurance agent license should renew it to avoid expiration.
Any prepaid legal services contract issued by an insurance company prior to March 1, 2004 remains in effect until its expiration date. Insurance companies may renew such a contract only if the insurer has registered with TDLR.
For more information about the new registration requirements, please visit TDLR's web site.
Questions regarding the new registration requirements should be directed to TDLR at CS.Legal.Service.Contracts@tdlr.texas.gov.
The Agent and Adjuster Licensing Office has a procedure to handle returned checks submitted for payment of various licensing filing fees.
Fees are a mandatory part of some licensing filings. When a check is returned to TDI, the filing is incomplete. When this occurs, the customer will be notified by a certified letter that a money order or cashier's check in the amount of the original check plus a $30.00 returned check fee must be returned to the department. If the filing fee was submitted for a new application for a license or renewal of an existing license and the check was returned, the customer will have 45 days to respond and submit the appropriate fees or the license may be canceled. If the returned check makes the renewal late, then a late fee must be added to the total.
The replacement money order or cashier's check must be received within 90 days from the expiration date of the license for the license to be renewed.
Texas Insurance Code § 4003.007 states that, "If a person's license has been expired for more than 90 days but less than one year, the person may not renew the license, but is entitled to a new license without taking the applicable examination if the person submits to the department a new application, the license fee, and an additional fee equal to one-half of the license fee."
It has come to the attention of the department that a nontraditional product is being offered in the Stranger-Owned Life Insurance (STOLI) market. Texas agents are being solicited to assist in the sale of what are frequently called "estate maximization plans", "zero premium life insurance", or "no cost to the insured" policies to consumers, most commonly elderly persons, between the ages of 65 and 85.
The Department is investigating and gathering details regarding these offerings. This notice is to alert Texas insurance agents to exercise caution with respect to these transactions.
Life insurance helps protect the people who depend on the insured for financial support. It can help pay final expenses and other expenses that the insured would have paid for through earnings, including mortgage payments, bills, dependent or child care, and college tuition. Insurance agents and companies must be licensed by the department to legally sell life insurance in the state.
Texas law provides that an individual may consent to another person purchasing insurance on his or her life. Texas law also allows owners of life insurance policies to sell existing life insurance policies to entities called viatical or life settlement providers. Viatical or life settlement providers and brokers are required to hold a certificate of registration issued by the department in order to do business in Texas.
If, as a Texas agent, you are considering:
- Soliciting or selling life insurance products to your clients where another person purchases insurance on the client's life in exchange for an immediate lump sum payment or a partial payment of the policy's face value to beneficiaries upon the insured's death;
- Soliciting or selling life insurance products to your clients for the sole purpose of their selling the policy to a viatical or life settlement provider; or
- Materially participating in transactions leading up to the purchase of life insurance for the above stated purposes; then the department offers the following suggestions:
- Inspect the insurance application and sales materials closely. If in doubt about the veracity or legitimacy of these products, contact the department to make sure all forms and items have been properly filed and approved.
- Obtain all details about the program and have a complete understanding of your obligations. If necessary, discuss this information with an attorney.
- Confirm that all persons and entities involved in your transaction are properly licensed and registered by the department. Agent, insurer, premium finance companies, and life or viatical settlement provider and broker licensure and registration can be verified at the department's Lists of Insurance Agents Licensed to Conduct Business in the State of Texas webpage, or through the department's toll-free Consumer Help Line (1-800-252-3439).
- Carefully consider the transactions in connection with potential violations of the Insurance Code, including those practices outlined in Insurance Code Chapter 541 which include rebating, improper inducements, misrepresentations, and other deceptive trade practices.
- Remember that filing an application for insurance containing materially false information may be prosecuted as insurance fraud and subject the actor to civil and criminal penalties.
- Insurance companies should investigate sudden spikes in production and business produced outside an agent's normal geographic territory.
- Use common sense. Remember the warning "If it seems too good to be true, it probably is."
The Texas Insurance Code gives insurers and agents an affirmative duty to report suspicion of fraud, and provides certain immunities from civil liability for reporting suspected fraud to the department. Insurance companies have an obligation to notify the department if they terminate an agent for cause. Texas law also provides for the assessment of various administrative penalties, including the revocation of an insurance agent's license, for failure to comply with any specific provision of the Texas Insurance Code, including, but not limited to, those regarding:
- unauthorized insurance;
- deceptive trade practices;
- advertising violations;
- rebating and other prohibited inducements;
- misrepresentation of terms and conditions of an insurance policy;
- misappropriation of money belonging to an insurer or insured; and
- fraudulent or dishonest conduct.
Provisional Permits for certain license types are now available:
- General Lines - Life, Accident & Health
- General Lines – Property & Casualty
- County Mutual Agent
- Pre-Need Agent
- Life Insurance Agent Not Exceeding $25,000.
The applicants must have passed the required licensing examination, met the requirements described in HB2145, including submitting a completed application and fingerprints for criminal history, and paid the required licensing application fee and provisional permit fee. The licensing application fee is $50.00 and the provisional permit fee is $50.00, for a total of $100.00 required to submit an application with provisional permit authority. The application to use for a provisional permit seeking a permanent license is the Application for Individual Agent License (TDI Form FIN506), with a revision date of 11/2015 or later. ONLY the described form is acceptable.
All public information requests must be sent to Public Information Coordinator David Wheelus. Your requests can be sent by email, fax, mail, or in person. Learn more about how to request information.
The Agent / Adjuster FAQs page is a handy resource, addressing many of the most common questions asked.
Phone number: 512-676-6500
For more information, contact:
Last updated: 02/16/2017