The Texas Department of Insurance (“TDI”) has now offered guidance on one of the most overlooked requirements for a Texas-licensed (both resident and non-resident) insurance agency: the requirement that an agency have an individually-licensed “officer” or “active partner” who holds an individual insurance agent license for the same line or lines of insurance as does the agency.
This requirement often surprises many applicants for a Texas insurance agency license—applicants who submit a TDI insurance agency license application (a TDI FIN507 Form) and overlook the instructions in Part II in the Form discussing the concept of an individually-licensed officer. And, this requirement is even easier to overlook when prospective buyers of an insurance agency consider officer changes while preparing a change of control filing (a TDI FIN531 Form) pursuant to Texas Insurance Code section 4001.253.
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