Why Texas Requires a Life Insurance License
Texas regulates life insurance sales through the Department of Insurance (TDI). A license ensures agents meet industry standards, protect consumers, and maintain the integrity of the insurance market. Without it, selling life products is illegal and can lead to civil penalties or criminal charges.
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Educational Prerequisites
To qualify, you must complete a pre‑licensing course approved by TDI. The course covers:
- Basic life insurance concepts
- Texas insurance statutes and regulations
- Ethics and consumer protection
- Exam study materials
Most institutions offer 30‑hour online or in‑person classes. Upon completion, you receive a certificate that must accompany your exam application.
Passing the State Exam
After the course, schedule the Texas Life Insurance Exam. The exam is 70 questions, 90 minutes, and covers:
- Life insurance products
- Policy provisions
- Underwriting principles
- Legal and ethical issues
To pass, achieve at least 70% correct answers. Exam fees are $75, and you can retake the test if needed.
Background Check and Fingerprinting
Texas mandates a background check for all applicants. Steps include:
- Submitting a fingerprint card to the Texas Department of Public Safety (DPS)
- Providing a completed criminal history form
- Paying a $35 processing fee
Fingerprints must be taken at a licensed location. The DPS review typically takes 7–10 business days.
Application Submission
Gather these documents:
- Pre‑licensing completion certificate
- Exam score report
- Fingerprint card
- Proof of Texas residency or business address
- Completed Application for License (Form 3)
Submit electronically via the TDI Licensing Portal or mail to:
Texas Department of InsuranceOffice of LicensingP.O. Box 5000Austin, TX 78701
Application fee: $90 (non‑refundable). Processing time averages 4–6 weeks.
Maintaining Your License
Once issued, you must:
- Complete 15 hours of continuing education every two years
- Renew the license annually with a $25 fee
- Stay current with TDI rule changes
Failure to comply can result in suspension or revocation.
Common Pitfalls to Avoid
Many applicants overlook:
- Submitting incomplete fingerprint cards
- Missing the 15‑hour continuing education requirement
- Not keeping up with policy updates
Double‑check all forms before submission and maintain a calendar for renewal reminders.