Why Texas Is Unique
Texas follows the National Association of Insurance Commissioners (NAIC) model, but its Department of Insurance (TDI) adds specific educational and testing mandates. The state's high demand for health‑care and life‑insurance agents means licensing is competitive, yet the process is straightforward once you understand the local nuances.
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Step 1: Meet Basic Eligibility
Applicants must be at least 18 years old, a U.S. citizen or legal resident, and pass a background check. Texas does not require a high school diploma, but a bachelor's degree can improve exam readiness.
Step 2: Complete Pre‑Licensing Education
Texas requires 20 hours of approved pre‑licensing coursework:
- 10 hours of general insurance law
- 5 hours of Texas insurance law
- 5 hours of ethics and exam strategy
Approved providers include the Texas Insurance Academy, Kaplan, and other accredited online schools. Courses can be taken in person or online; certificates must be submitted to TDI.
Step 3: Pass the NAIC Exam
After education, schedule the NAIC "Life & Health" exam via PSI. The test consists of 120 multiple‑choice questions, with a 75‑minute time limit and a 70% passing score. Texas allows the "pre‑test" option: you can take a practice exam for free before the official test. Preparation tools include study guides, flashcards, and practice exams.
Step 4: Submit the Application
Gather required documents: proof of education, exam results, background check, and a completed Texas Insurance Application (Form 1). Pay the $30 application fee. Submit electronically through the TDI portal. Processing takes 7–10 business days.
Step 5: Obtain a Surety Bond (If Needed)
Agents who sell policies on behalf of a company must secure a $100,000 surety bond. The bond protects consumers and is issued by an approved surety company.
Step 6: Receive Your License
Once approved, TDI issues a physical license card and an electronic license number. You may begin selling policies immediately, but must register with any insurance company's agent portal.
Renewal and Continuing Education
Texas requires 20 hours of continuing education every two years, including 2 hours of ethics. Submit a renewal application and fee of $50 before the license expires. Failure to renew results in suspension.
Common Pitfalls
• Skipping the Texas law portion of the pre‑licensing course.• Not completing the background check on time.• Forgetting to submit the bond for agency work.
Resources
• Texas Department of Insurance: tdi.texas.gov• NAIC Exam Schedule: naic.org• Approved Pre‑Licensing Providers: tdi.texas.gov/insurance/education