State RegulationsTX specificDifficulty 1/5
How is the term of a Texas general lines agent license described under TIC 4003.001 and the related renewal provisions?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 4003.001 and the renewal provisions that accompany it, a Texas agent license is issued for a 2-year term and expires at the end of that term unless the licensee renews. Renewal is affirmative: the agent must satisfy the continuing education requirement, pay the renewal fee and file the renewal, and the department sends a renewal notice 90 days before the expiration date. An agent who assumes the license continues on its own usually discovers the problem only when a carrier refuses to pay an unlicensed producer.
Why the other options are wrong
- A) Passing the examination does not create a lifetime license; the license must be renewed every 2 years.
- B) There is no 20-year license term; 20 years is the period after which a long-licensed agent may seek an exemption from continuing education.
- C) Renewal is not automatic; the license expires at the end of the 2-year term unless the agent completes the requirements and files for renewal.
Memory hook
A Texas license lives two years and must be renewed; it never rolls over by itself.