What happens when your Texas insurance license lapses
Your Texas insurance license becomes inactive when you stop paying your renewal fee, fail to complete required continuing education, or let your license expire without renewing it on time. The Texas Department of Licensing and Regulation (TDLR) does not automatically cancel it — it straightforward moves to inactive status, which means you cannot legally sell, solicit, or negotiate insurance in Texas until you reinstate it.
The path back depends on how long your license has been inactive and what caused the lapse. If you let it expire recently and the reason was straightforward (you missed the renewal important date, for example), reinstatement is usually faster than getting a new license from scratch. If your license was suspended or revoked for a violation, reinstatement requires additional steps and TDLR approval.
The good news: TDLR has a clear reinstatement process, and most people can complete it without taking the licensing exam again — as long as you act within the allowed window.
Key Takeaways
- An inactive Texas insurance license can usually be reinstated within two years of expiration without retaking the exam, but you must pay all back renewal fees and complete any overdue continuing education.
- You must renew your license through the TDLR online system and provide proof of current continuing education hours before reinstatement is approved.
- If your license has been inactive for more than two years, you will need to retake the licensing exam and may need to complete additional education requirements.
- If your license was suspended or revoked due to a violation or complaint, you must resolve that issue with TDLR before reinstatement is possible.
- The reinstatement fee varies by license type (life, health, property and casualty, etc.) and is separate from your renewal fee.
Reinstatement within two years of expiration
If your license expired within the last two years and was not suspended or revoked, you can reinstate it without retaking the exam. This is the most common reinstatement path. You will need to log into your TDLR account, pay the reinstatement fee for your license type, and provide proof that you have completed all continuing education hours required during the time your license was inactive.
Before you start, gather these documents: your Social Security number or FEIN, your current email address, and proof of continuing education completion. Most continuing education providers send you a certificate or completion notice electronically — have that ready. You will also need to pay the reinstatement fee plus any renewal fees you missed while inactive. The total cost depends on your license type; property and casualty licenses, for example, cost differently than life or health licenses.
Log into the TDLR licensing system at license.tdlr.texas.gov, select your license, and choose the reinstatement option. Follow the prompts to upload your continuing education proof and pay the fees. TDLR typically processes reinstatement requests within 5 to 10 business days if your paperwork is complete and there are no issues on your record.
Reinstatement after two years of expiration
If your license has been inactive for more than two years, TDLR treats it differently. You cannot straightforward renew — you must retake the licensing exam for your line of insurance. This is because TDLR assumes that your knowledge has become outdated after such a long period away from the industry.
To restart, you will need to register for the exam through TDLR's testing vendor (currently PSI), pay the exam fee, and schedule a test date. You may also be required to complete a certain number of continuing education hours before you sit for the exam, depending on TDLR's current rules. After you pass the exam, you can then pay your reinstatement and renewal fees and submit your process through the TDLR system.
This route takes longer — typically 4 to 8 weeks from exam registration to final reinstatement — so plan accordingly if you need to return to work quickly.
Reinstatement after suspension or revocation
If your license was suspended or revoked due to a complaint, violation, or disciplinary action, reinstatement is not automatic and requires TDLR approval. You cannot straightforward pay fees and renew. Instead, you must first resolve the underlying issue — this might mean completing a remedial education course, paying a fine, or demonstrating that you have corrected the violation.
Contact TDLR's Enforcement Division to find out what specific conditions must be met before your license can be reinstated. They will provide you with a written list of requirements. Once you have met all conditions and submitted proof to TDLR, you can then request reinstatement. TDLR will review your request and either approve or deny it based on whether you have satisfied all requirements.
This process can take several months, and there is no may provide of approval. If TDLR denies your reinstatement request, you have the right to request a hearing before the State Office of Administrative Hearings (SOAH).
Continuing education requirements during reinstatement
Texas requires all active insurance agents to complete continuing education hours every two years. If your license was inactive, you still owe those hours for the time you were inactive. Before TDLR will reinstate your license, you must show proof that you have completed all overdue continuing education.
The number of hours required depends on your license type and how long you were inactive. A property and casualty agent, for example, typically needs 30 hours every two years. If you were inactive for four years, you would owe 60 hours. You can take these courses online through TDLR-approved providers, and most providers will issue a completion certificate when ready after you finish.
Make sure the continuing education provider you choose is approved by TDLR — not all online insurance courses count. Check the TDLR website for the list of approved providers before you enroll.
Fees and payment for reinstatement
Reinstatement requires two separate payments: the reinstatement fee and the renewal fee. The reinstatement fee is a one-time charge that varies by license type. The renewal fee is what you would normally pay to keep your license active for the next two-year period.
You can pay both fees online through the TDLR licensing system using a credit card or electronic check. If you are unsure of the exact amount for your license type, log into your TDLR account and the system will show you the total due before you complete payment. Payment is required before your reinstatement is processed.
Timeline and what to expect after you submit
Once you have submitted your reinstatement request with all required documents and fees, TDLR will review your file. If everything is in order, you should receive approval within 5 to 10 business days. You will receive an email notification, and your license status will change to active in the TDLR system.
If TDLR finds that your paperwork is incomplete or there is a problem with your continuing education documentation, they will contact you and ask for additional information. This can add 1 to 2 weeks to the process. Once you provide what they need, processing resumes.
After your license is reinstated, you can when ready begin working as an insurance agent in Texas. You will receive a new license certificate in the mail within 2 to 3 weeks.
Frequently Asked Questions
Do I have to retake the exam to reinstate my license?
Not if your license has been inactive for less than two years and was not suspended or revoked. You can reinstate by paying fees and providing proof of continuing education. If your license has been inactive for more than two years, you must retake the exam before reinstatement is approved.
What if I cannot find my continuing education certificates?
Contact the continuing education provider directly and request a transcript or duplicate certificate. Most providers keep records for at least five years and can resend proof of completion. If you took courses through multiple providers, you will need to gather certificates from each one. Have the provider send the proof directly to TDLR if possible, or upload it yourself through your TDLR account.
Can I reinstate my license if I have a complaint or investigation pending against me?
No. If TDLR has an open complaint or investigation, your license cannot be reinstated until that matter is resolved. Contact TDLR's Enforcement Division to find out the status and what you need to do to close the case.
How much does reinstatement cost?
The cost varies by license type and includes both a reinstatement fee and a renewal fee. Property and casualty licenses typically cost between $150 and $250 total, while life and health licenses may differ. Log into your TDLR account to see the exact amount owed for your license type before you pay.
What if TDLR denies my reinstatement request?
If your request is denied, TDLR will send you a written explanation of the reason. You have the right to request a hearing before the State Office of Administrative Hearings (SOAH) to challenge the denial. You must request the hearing within 30 days of receiving the denial letter.