General lines property and casualty agents, and general lines life, accident, health and HMO agents may need an additional license (or licenses) in order to perform certain services. The following is a brief description of these licenses that are the responsibility of the Texas Department of Insurance. Further information and license applications can be obtained from TDI, Licensing Group, 512/322-3503.
Life and Health Insurance Counselor
This license is needed by any person who:
- examines a life, accident or health insurance policy, a health benefit plan, or annuity or pure endowment contract for a fee or commission, and
- gives advice and recommendations concerning the terms, conditions, benefits, coverage or premium.
A licensed life and health insurance counselor is not permitted to receive a fee as well as a commission if he or she performs the services of an agent to the same client.
Third Party Administrator (TPA)
This license is required of individuals or entities that provide administrative services and handle or manage funds in a fiduciary capacity in connection with insurance or alternatives to insurance. This does not apply to an employer or an employee of a company performing the functions of a group policyholder for the employer.
Premium Finance Company
This license is needed by an individual or entity engaged in the business of making loans by entering into premium finance agreements with insureds. This does not include an insurance agent involved only in the preparation and delivery of a premium finance agreement or disclosure statement, unless agreements are made payable to the agent's order. (See Agency Management article "Premium Financing" for additional information on premium financing by agents.)
Pre-Paid Legal Services Sales Representative
Sales representatives of for-profit legal services contracts companies must be registered with the Texas Department of Licensing and Regulation (TDLR).