In Texas, the Department of Insurance (TDI) regulates auto insurance agents. To become licensed, applicants must be at least 18, complete 20 hours of pre‑licensing education, pass the state exam, and submit a background check. The license is valid for three years and requires 12 hours of continuing education before renewal. Agents can specialize in auto, commercial, or personal lines, but the core requirements remain identical across categories.
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Pre‑Licensing Education
Applicants must complete a 20‑hour course approved by the Texas Department of Insurance. Topics include policy types, underwriting, and state regulations. Courses are offered online and in classroom settings by accredited providers. The coursework must be completed before the exam application is submitted.
Exam Requirements
After education, candidates must schedule the Texas Insurance Agent Examination through the TDI. The exam consists of 70 multiple‑choice questions covering general insurance principles, auto‑specific regulations, and ethics. A passing score of 70% is required. The test is administered at regional test centers; online testing options are limited.
Application and Background Check
Once the exam is passed, applicants submit the Application for Insurance Agent License, paying the $90 fee. The TDI conducts a background check, reviewing criminal history and prior insurance disciplinary actions. Applicants with certain convictions may be denied or required to provide additional documentation.
License Issuance and Renewal
Upon approval, the license is mailed to the applicant. The license is valid for three years. Renewal requires completing 12 hours of continuing education, filing a renewal application, and paying the $60 renewal fee. Failure to renew within 60 days of expiration can result in license suspension.
Continuing Education and Specialization
Agents can pursue specialty endorsements in commercial, workers' compensation, or life insurance by completing additional courses. Each specialty has its own exam and continuing education requirements. Maintaining a robust knowledge base ensures compliance with evolving Texas insurance laws.
Common Pitfalls and Tips
- Missing the 20‑hour education requirement before exam registration.
- Failing to submit the background check form on time.
- Not tracking the 12‑hour continuing education deadline.