TDI: Texas Department of Insurance - Changes to Agent Licensing Laws

Changes to agent licensing laws

The Texas Department of Insurance has issued a bulletin listing major changes to agent licensing provisions during the 87th Legislature.

Those include:

  • Increasing ethics continuing education requirements.
  • Removing the life and health insurance counselor license.
  • Removing insurance service representative license.
  • Discontinuing registration for home office salaried employees.
  • Eliminating subagent appointments.

This bulletin provides a summary of changes to agent license requirements in House Bill 4030 from the 87th Texas Legislature.

Increases ethics continuing education requirements

The continuing education requirement for ethics increased from two hours to three hours per license period for licenses expiring on or after September 30, 2022. This change doesn’t affect the total number of hours required during the two-year licensing period. The Texas Department of Insurance (TDI) will be providing more information on when licensees must complete the additional ethics training. To make sure you get the notice, sign up for email alerts about agents and adjusters.

Removes the life and health insurance counselor license

All active life and health insurance counselor licenses issued before June 1, 2021, will be converted to a general lines agent license with a life, accident, and health qualification.

Licensees must comply with all requirements of the general lines agent license with a life, accident, and health qualification to keep the license active and in good standing.

Removes insurance service representative license

All active insurance service representative licenses issued before June 1, 2021, will be converted to a general lines agent license with a property and casualty qualification.

Licensees must comply with all requirements of the general lines agent license with a property and casualty qualification to keep the license active and in good standing.

Removes home office salaried employees

The registration for home office salaried employees will be discontinued starting September 1, 2021. Anyone who engages in the business of insurance must get the appropriate license.

Subagent appointments

There is no longer a subagent designation under Insurance Code Chapter 4001. All agents must be appointed by an insurance company to engage in the business of insurance.

Other changes

  • Companies are no longer required to report and register each branch location.
  • A clearance letter is no longer required in a nonresident agent’s application for a comparable license for Texas residents.
  • Nonresident public insurance adjusters no longer need to provide a certificate or letter of authorization from their state of residence or provide an annual affidavit stating they are familiar with Texas laws.
  • HB 4030 allows TDI to stop accepting provisional applications unless application processing time is 21 days or greater in the last 90 days.
  • HB 4030 automatically suspends, cancels, or revokes a nonresident Texas license if the home state suspends, cancels, or revokes the home state license.

For questions about this bulletin, contact the Agent and Adjuster Licensing Office at 512-676-6500 or license@tdi.texas.gov.

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