New Rules Affect Fees, Licensing Requirements for Insurance Agents

Tuesday, May 29, 2018 | 0

The Texas Department of Insurance has formally adopted changes to nine rules that affect the regulation, licensing and fees for insurance agents. 

The rules were required in part by Senate Bill 876, which was passed by the 2015 Legislature after a 60% increase in the number of applications from people seeking to become insurance agents and adjusters, according to a legislative analysis of the bill.

The rules, which take effect Thursday, address several areas and will require a $10 fee for applications when new agents or sub-agents are appointed, but allows military veterans to have certain fees and requirements waived. 

The rules also set new procedures for insurers that appoint more than 500 temporary license holders and reduces the number of continuing education hours required for certain licensees, in keeping with national standards.

The rules prohibit new licenses if the applicant cannot provide evidence that continuing education requirements were met or that fines have been paid. The department noted in its explanation of the rules that because it licenses more than 300,000 people, it may take a while to review all licensees, and may extend the June 1 implementation date on the section.