How to become a licensed insurance agent in texas

By Fraser Sherman Updated August 21, 2018

The first requirement for a Texas insurance license is deciding what kind of license you want. The Texas Department of Insurance lists multiple career paths on its website, including agents, adjusters and risk managers. The path to acquiring a Texas insurance license is similar for all of them.

To get a Texas insurance license you first have to pass the state exam. Next you submit your fingerprints for a background check. If you pass the exam and the check, submit your license application.

The first requirement for a Texas insurance license is to take the licensing exam in your area. While the state doesn't require you take any classes to prep yourself, they're probably necessary, if you don't already know the field. There's no shortage of teachers: Kaplan Financial Education offers classes in Texas insurance, as does the A.D. Banker firm.

The Pearson VUE company handles the testing. You can sign up and pay the fee online, but you have to take the exam in the flesh, at your local testing center. There are a few exceptions to the exam requirement. For example, if you're already licensed in a state that recognizes Texas insurance licenses, Texas will recognize yours in return.

Once you pass the exam, you need to get fingerprinted. the IdentoGo company takes fingerprints for the TDI, then submits them to the Texas Department of Public Safety. That department will make a background check. If it comes back clear, you can forge ahead. If you live outside Texas and can provide them with a criminal history record from your home state, you can waive the fingerprinting.

When you apply for an agent's license, you can do it online or by paper. You can download the form for hard-copy applications from the TDI website. The form is also available in Pearson's handbook. Don't wait too long to apply: After a year, your exam no longer counts, so you'll have to retake it.

In special cases, you can apply for an emergency or temporary Texas insurance license. Applicants request an emergency property and casualty license, for instance, before taking over the business of a deceased or insolvent agent, to keep the agency afloat.

To keep your license in good standing, you need to take continuing education classes, amounting to a certain number of hours every two years. You also have to keep the department updated of any changes to your contact information. The state has a TDI agent lookup service, where anyone who wants to do business with you can confirm your license is in good standing. Having your information on file helps with that. The state also offers a Texas adjuster license lookup service.

Each state has its own licensing requirements for insurance agents and brokers. Applying for an insurance agent license in Texas comes with challenges, but your hard work will pay off. This is one of the few industries where anyone can make significant income within their first months of employment. Plus, it doesn't require formal education or previous experience in insurance sales.

Texas-based insurance agents must take an exam and obtain licensure in order to practice their profession. While formal education isn't required, a college degree in finance, business or risk management may improve your career prospects.

Texas was home to more than 33,290 insurance sales agents in 2019, reports the U.S. Bureau of Labor Statistics (BLS). Most professionals in this field make approximately ​$68,740​ per year, or slightly over ​$33​ per hour. Some are independent and represent different companies, while others sell insurance products for a single company.

Independent agents may sell one or more types of insurance, such as health coverage, life insurance or disability insurance policies. Many of them also specialize in other financial products, from annuities to mutual funds. As an independent agent, you can either start your own business or work for brokerages and insurance agencies. The BLS reports that 12 percent of insurance agents are self-employed.

Captive agents are typically employed by the insurance company they represent. Therefore, they receive a salary and benefits plus a commission per sale. The downside is that they can only sell specific products. Independent agents, on the other hand, can provide their clients with multiple quotes from different companies and help them choose the best policy for their needs.

Regardless of which route you take, be prepared to work full time and spend long hours at your desk. There will also be days when you may need to stay on the road all day long, going from one meeting to another. Don't be surprised if you hear the word "no" far more than you hear the word "yes," especially at the beginning of your career. Some clients will hang up the phone on you the moment they hear you're an insurance agent. Even so, you'll be able to use your expertise to make a difference in people's lives.

As an independent insurance agent, you'll do more than just sell financial products. You may also be in charge of developing marketing strategies, monitoring insurance claims, maintaining records and networking on social media. Most agents also handle policy renewals, which allows them to build lasting relationships with their clients. Depending on the job, they may attend workshops, seminars and other professional events that could open up new opportunities.

Insurance agents only need a high school diploma, but some employers may prefer candidates with a college degree in business, finance or marketing. The University of North Texas, for instance, offers a Bachelor of Business Administration (BBA) degree program with a concentration in risk management and insurance. The curriculum covers insurance company operations, corporate risk management and other related topics. Similar programs are available at the University of Texas at Tyler and the University of Houston-Downtown.

A bachelor's degree takes four years to complete. If you want to start your career faster, consider taking a course in finance, risk management or economics. The American College of Financial Services features several certification programs in wealth management, retirement income planning, financial planning and more. Some courses can be completed online.

Note that many insurance companies offer on-the-job training. New agents may have the opportunity to complete an internship program so they can learn more about this business model and hone their leadership skills. If you complete a college degree program in risk management or a related field, you may be able to secure an internship while attending school.

All states require insurance agents to carry a valid license. Texas is no exception. The licensure progress is regulated by the Texas Department of Insurance (TDI) and has several steps. First, candidates must access Pearson VUE and create an account so they can make an appointment for the licensing exam. The reservation must be made online or by phone at least 24 hours prior to the desired examination date.

The next step is to contact MorphoTrust via their website or by phone and schedule your fingerprint appointment at least 24 hours in advance. Candidates who have previously submitted their fingerprints to TDI are not required to do it again, according to the Texas Insurance Licensing Candidate Handbook. Your application will be processed as soon as TDI receives your criminal history reports from the state department of public safety and the FBI.

All applicants must take and pass the exam to get their insurance agent license in Texas. The test has two sections: one that focuses on the primary types of insurance products and another one covering the state laws and regulations for insurance professionals. Candidates must also answer several pretest questions for statistical purposes. Those who fail can take the exam again within one day (by appointment). If you pass the test, you must apply for your license online within one year.

Note that there are five types of insurance licenses available in Texas. If, say, you want to sell property and casualty insurance, you must take the associated exam and then apply for licensure. The test will look slightly different for those planning to sell life, accident and health coverage.

Applicants who hold a professional designation, such as the CPCU (Chartered Property and Casualty Underwriter) or CFP (Certified Financial Planner) don't have to take the licensing exam. The same rules apply to those looking to get an insurance broker license in Texas.

As an independent insurance agent, you have more freedom and flexibility than a captive agent. If you're self-employed, you can set your own schedule and decide what services you want to offer. Getting started is the hardest part. Consider working for an insurance agency or brokerage in the early stages of your career to gain experience.

First, create a resume that highlights your entrepreneurial side and interpersonal skills. Try to demonstrate your ability to understand the client's needs and convey information about the products you sell. If you worked as a sales rep or had a side business in the past, list it on your resume.

The Independent Life Insurance Agent Association recommends using Canva and other graphic design tools to make your resume stand out. You may also set up a one-page website that highlights your professional experience, accomplishments and skills. Create a professional LinkedIn profile and use it as a tool to connect with potential employers and market yourself.

Next, make a list of independent insurance agencies that meet your needs. West Texas Insurance Agency, Independent Insurance Group and Texas Independent are just a few examples. Check out their websites and social media pages, look them up with the Better Business Bureau and see what their employees are saying on Glassdoor. Submit your resume by email and follow up with a call a few days later.