A risk managers license is required for any individual who for compensation examines, assesses, or evaluates risks for and provides advice for reduction of risks to a person who seeks to obtain or renew property and casualty insurance coverage.
The risk managers license does not apply to a person who is employed as a risk manager by a liability insurance company authorized to do business in Texas, or by a single employer, or by a public self-insured pool.
In addition to the other requirements for obtaining a licensing (see "Obtaining a License"), a person applying for a risk manager's license must meet the following requirements:
- Be an individual (no corporate or partnership risk managers license)
- Maintain a place of business in Texas.
The Texas Department of Insurance does not condone or approve of dual compensation for those individuals licensed as both an agent and a risk manager, but recognizes that, under certain circumstances, restricted dual compensation may be acceptable. Primarily these circumstances are limited to large commercial accounts for whom the agent provides risk management services that exceed the ordinary bounds of servicing that account. Under these special circumstances, a risk manager's fee may be collected in addition to commission for a policy placement for the same client if a written contract and a full disclosure statement is furnished to the client prior to contracting the risk management service. A suggested agreement form is available (in PDF format).