The Texas Department of Insurance (TDI) licenses and regulates different types of insurance agents, adjusters, and brokers. These professionals may face disciplinary proceedings if TDI receives complaints and finds they violated applicable rules or laws.
Because these proceedings can carry severe consequences, experienced legal representation matters. The Texas insurance license defense lawyers from Bertolino LLP can review any complaints and disciplinary actions from the TDI and build your defense to protect your career and future.
Licensed Insurance Agents
The Texas professional license defense lawyers at Bertolino LLP handle cases involving various licenses the Texas Department of Insurance (TDI) issues and regulates. When it comes to insurance agents, the Department oversees licensing for the following:
- County mutual
- Escrow officer
- Funeral pre-arrangement life
- General lines, life, accident, health, and HMO
- General lines, property and casualty
- Life agent
- Life insurance not exceeding $25,000
- Limited lines
- Managing general agent
- Personal lines property and casualty
- Risk manager
- Surplus lines
- Title insurance
The insurance industry includes many roles. Each type demands compliance with specific TDI regulations, and even a minor infraction can place a license in jeopardy.
Licensing for Specialty Insurance Agents
TDI also issues licenses for some specialty insurance agents, including:
- Credit
- Portable electronic vendor
- Rental car company
- Self-service storage facility
- Travel
Specialty insurance licenses often serve niche markets, and complaints issued against license holders can have long-lasting impacts in these smaller, competitive fields. The lawyers at Bertolino LLP defend specialty agents facing investigations or hearings, helping them maintain their ability to work.
Licensed Insurance Adjusters
TDI also licenses and regulates various types of insurance adjusters, including the following:
- All lines
- Designated home state, all lines
- Emergency (catastrophe)
- Property and casualty
- Public Insurance
- Trainee
- Workers’ compensation
Complaints submitted to the TDI about an adjuster’s actions can lead to investigations and possible disciplinary measures.
Licensed Brokers and Other Professionals
TDI licenses and regulates some types of brokers and related professionals, including:
- Life settlement broker/expectancy estimator
- Life settlement provider
- Reinsurance broker
- Reinsurance manager
Professionals in these roles are subject to TDI regulations, and violations could lead to disciplinary action. Investigations and license challenges can disrupt their ability to work in their profession.
Certifications and Registrations Issued by TDI
TDI also offers certifications and registrations in the following areas:
- Small employer health benefit plans
- Medicare-related products
- Long-term care insurance
- Annuity products
- Discount healthcare program operators
Allegations of non-compliance or misconduct can lead to certification challenges that may affect a professional’s career. Bertolino LLP can review complaints, assist with compliance concerns, and represent professionals in administrative proceedings to help them retain their certifications and remain in good standing.
Grounds for Disciplinary Actions Against Insurance License Holders
Tex. Ins. Code §4005.101 outlines the grounds for disciplinary actions by TDI against insurance agents, adjusters, and other professionals, which include:
- Violating state insurance laws
- Intentionally making a material misstatement in the license application
- Obtaining or attempting to obtain the license by fraud or misrepresentation
- Misappropriating or converting to the applicant’s or license holder’s own use or illegally withholding money belonging to an insurer, HMO, or an insured, enrollee, or beneficiary
- Engaging in fraudulent or dishonest acts or practices
- Materially misrepresenting the terms and conditions of an insurance policy or contract, including an HMO membership contract
- Being convicted of a felony
- Offering or giving a rebate of an insurance premium or commission to an insured or enrollee
- Not being actively engaged in soliciting or writing insurance for the public generally as required
- Obtaining or attempting to obtain a license, not for the purpose of holding the applicant or license holder out to the general public as an agent, but primarily for the purpose of soliciting, negotiating, or procuring an insurance or annuity contract or membership covering:
- the applicant or license holder;
- a member of the applicant’s or license holder’s family; or
- a business associate of the applicant or license holder.
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Disciplinary Proceedings Against Insurance License Holders
If TDI seeks to suspend, revoke, or decline to renew an insurance license, the license holder is entitled to a hearing before the State Office of Administrative Hearings (SOAH). An administrative law judge (ALJ) will hear evidence from the license holder and TDI and submit a proposed decision.
Some laws governing specific types of insurance licenses outline additional procedures for handling disciplinary proceedings. For example, Tex. Ins. Code §2652.203, which governs disciplinary proceedings for escrow officers, requires TDI to notify the license holder of a disciplinary or enforcement action within 30 business days after it assigns a file number to the action, with some exceptions.
For escrow officers, a disciplinary or enforcement action is automatically dismissed with prejudice unless TDI serves a notice of hearing on the license holder within 60 business days after receiving the license holder’s hearing request.
Potential Sanctions for Disciplinary Actions Against Insurance License Holders
If TDI finds that disciplinary action against an insurance license holder is warranted, TDI can seek various remedies or sanctions. Potential sanctions may include suspending, revoking, or denying a license or certificate renewal. If TDI chooses to suspend a license, it may also place the license holder on probation.
TDI can assess an administrative penalty, a fine, or issue a reprimand to the license holder. Finally, TDI can require the license holder to qualify or requalify for a certificate to sell a product or product line as required by the rule.
If TDI places an individual whose license has been suspended on probation, TDI can require them to take any or all of the following actions:
- regularly report to the Department on any matter that is the basis of the probation;
- limit the license holder’s practice to the areas prescribed by the Department; or
- continue or review professional education until the license holder attains a degree of skill satisfactory to the commissioner in each area that is the basis of the probation.
TDI reserves the assessment of fines for minor violations, such as failing to change your address with the Department or obtain the required number of continuing education hours before the expiration date of your license.
A fine may also be assessed if you fail to notify TDI of an administrative action against you by another state or federal government’s financial or insurance regulator. However, TDI is not limited to assessing a fine for these violations.
Defend Yourself Against Disciplinary Proceedings Involving Your Insurance Agent or Adjuster License
If you’re wondering what kind of licenses the Texas Department of Insurance issues and regulates, you may already be facing a complaint or disciplinary action. Don’t allow an isolated complaint to wreak havoc on your career.
Losing your license or certification can be highly detrimental to your business. If you are facing the loss of your insurance license or certification, the insurance license defense attorneys at Bertolino LLP can help you take the steps necessary to challenge the allegations against you in your disciplinary proceedings.
Our attorneys have served thousands of licensed professionals across Texas. For a free consultation, speak to our Client Success Liaison today.
Call or text (512) 515-9518 or complete a Case Evaluation form
