A license can be issued to a general partnership, limited partnership (LP), limited liability partnership (LLP), or limited liability limited partnership (LLLP). The partnership must have a separate license for each type of insurance it intends to handle or for which it will receive compensation (property and casualty; life, accident and health, etc.) At least one active partner and all others who perform the acts of an agent must have a separate license for each type of insurance handled. Risk manager or adjuster licenses are not issued to partnerships. The agency license application can be downloaded from the TDI web site.
Partnership Name Change
If a partnership agency changes its legal name, form FIN528 must be submitted with a fee and the current partnership license for cancellation. An endorsement or certificate to the E&O policy or bond must accompany the form. A new license will be issued, reflecting the new name. The FIN528 can be downloaded from the TDI web site. (See "Naming Your Agency")
A license can be issued to a corporation or a limited liability company (LLC). The corporation must have a separate license for each type of insurance it intends to handle or for which it will receive compensation (property and casualty; life, accident and health, etc.) At least one officer of the corporation and all others who perform the acts of an agent must have a separate license for each type of insurance handled. Risk manager or adjuster licenses are not issued to corporations. The corporate applicant must submit these items in addition to the application:
- A certified (not notarized) copy of its articles of incorporation (available from the Secretary of State online, or by telephone at (512) 463-5578, by fax at (512) 463-2512, or by writing to the Secretary of State at the following address: Certifying Team, Corporations Section, Secretary of State, P.O. Box 13697, Austin, Texas 78711-3697)
- A current franchise tax "Certificate of Good Standing," available from the state comptroller by calling (800) 252-1381, or by email at email@example.com, or online at www.window.state.tx.us/taxinfo/coasintr.html. The corporate taxpayer ID number or charter number is required.
The agency license application can be downloaded from the TDI web site.
Corporation Name Change
When a corporation wishes to change its chartered name, the corporate license must be returned along with form FIN528 and a fee. A certified copy of the amendments to the Articles of Incorporation and an endorsement or certificate to the E&O policy or bond must accompany the form. The FIN528 can be downloaded from the TDI web site. (See "Naming Your Agency").
Evidence of Financial Responsibility
The partnership or corporation must demonstrate evidence of financial responsibility by providing one of the following:
- Errors and omissions insurance policy or certificate with a limit of at least $250,000 containing a deductible of no more than 10 percent of the limit; the policy must be issued by an insurance company licensed to do business in Texas, or an approved surplus lines insurance company if a policy cannot be obtained from a licensed company; or
- Surety bond in the principal sum of $25,000. The bond forms can be downloaded from the TDI web site.
(Refer to IIAT's E & O program)
A partnership or corporation must file a biographical form for each of the following individuals:
- Unlicensed executive officers and directors who administer the entity's operations in Texas, and
- Unlicensed shareholders holding more than 10 percent of the voting stock or the voting rights.
- Unlicensed partners who administer the entity's operations in Texas, and
- Other unlicensed partners who have a right to vote or through any other right or power exercise rights in the management, direction, or conduct of the business of the partnership.
If a licensed partnership or corporation is owned in whole or in part by another entity, a biographical form is required for each individual meeting the above requirements as respects the other entity.
Addition or Removal of Principals
A partnership or corporation or LLC must notify TDI using the required biographical form within 30 days of the addition or removal of an officer, director, partner, member or manager.
Fingerprint Requirements and Criminal History
When a new corporate or partnership license application is submitted, any individual officer, stockholder or partner must submit fingerprints if he or she has not previously submitted fingerprints for another license or authorization or if the previously submitted fingerprints are more than seven years old. This also applies when an individual submits a biographical form to become an officer, director or partner of an existing licensed entity or to reinstate a license that has been expired more than 90 days but less than one year. Fingerprint cards and fingerprinting services are available from Pearson Vue (with or without the exam) or from IndentoGo by MorphoTrust.
TDI uses the submitted fingerprints to obtain the individual’s criminal history information. This activity support the federal Violent Crime Control and Law Enforcement Act (VCCLEA) of 1994, which prohibits an individual who has ever been convicted of a state or federal felony involving dishonesty or breach of trust from engaging in the business of insurance unless the individual is specifically authorized to do so by an insurance regulatory official. In addition, insurance agencies and companies may not knowingly allow such individuals to work in the insurance industry – licensed or unlicensed. Persons with such criminal records, and persons who permit such individuals to work in the industry, are subject to fines and imprisonment. (Click here for a more detailed report on VCCLEA
Change of Control
Before there is a change in controlling interest in a corporation or LLC (ownership of more than 10 percent of the voting stock or voting rights) or of a partnership (a right to vote or any other right or power to manage or direct the conduct of the partnership), the new controlling person must file the required biographical form and other information required by TDI. The change of control is deemed approved if TDI has not denied the requested change before the 61st day after TDI receives the required information.
Banks and Other Depository Institutions
The following types of depository institutions can be licensed under the same rules that apply to corporations:
- A bank or savings association as defined by federal law;
- A foreign bank that maintains a branch, agency, or commercial lending company in the U.S.;
- A federal or state credit union as defined by federal law;
- A bank branch; or
- A bank subsidiary, as defined by state or federal law.