What fines you'll face when reinstating a Texas insurance license
The Texas Department of Insurance (TDI) charges fines based on how long your license has been inactive and whether you let it lapse voluntarily or it was suspended for a violation. A license that expired while you were not actively selling insurance typically costs less to reinstate than one suspended for a compliance failure. The exact amount depends on your license type, how many years have passed, and whether TDI issued any disciplinary orders against you.
You cannot reinstate your license until all fines are paid. TDI will not process your reinstatement process, issue a new license, or restore your ability to sell until your account shows a zero balance. This is a hard requirement — there is no payment plan or deferral option available through the reinstatement process itself.
The fines are separate from any other costs, such as the reinstatement fee itself, continuing education requirements, or background check fees. You need to know the total amount owed before you begin the reinstatement process so you can budget for all of it at once.
Key Takeaways
- TDI fines for license reinstatement vary by license type and length of inactivity, and you must pay them in full before your license can be reinstated.
- A license suspended for a violation or compliance failure typically carries higher fines than one that straightforward expired while inactive.
- You can contact TDI's License Holder Services to request a written statement of what you owe before you submit a reinstatement process.
- Fines are non-negotiable and separate from reinstatement fees, continuing education costs, and any other reinstatement requirements.
- If you cannot pay the full amount when ready, you should contact TDI to ask about your options before submitting an incomplete process.
How TDI calculates fines for expired or suspended licenses
TDI uses a tiered structure based on the number of years your license has been inactive. A license that lapsed one year ago costs less than one inactive for five years. The calculation also depends on your license type — a property and casualty license may have a different fine schedule than a life and health license, and a managing general agent license may differ from both.
If your license was suspended due to a complaint, violation, or disciplinary action, TDI adds a separate penalty on top of the standard reinstatement fine. This penalty reflects the severity of the violation. For example, a suspension for failure to maintain required errors and omissions insurance carries a different penalty than a suspension for misrepresentation or fraud. You will see both amounts listed on your account statement.
TDI publishes its fee schedule on its website, but the schedule lists reinstatement fees, not fines. Fines are determined case-by-case based on your specific history. The only reliable way to know what you owe is to contact TDI directly or request a written account statement before you explore.
Requesting a written statement of fines owed
Contact TDI's License Holder Services at 1-800-578-4677 or through the TDI website to request a written statement of all amounts owed on your license. Provide your license number or Social Security number so they can pull your account. Ask them to send you a written statement that lists each fine, the reason for it, and the total amount due. Do not rely on a verbal quote — get it in writing so you know exactly what to pay.
The statement will show your current balance, any fines assessed, any reinstatement fees, and any other outstanding amounts. It will also tell you whether your license was suspended for a specific violation or straightforward allowed to expire. This document is essential because it prevents surprises when you submit your reinstatement process.
Keep this statement with your reinstatement process materials. If you dispute any of the fines listed, you can request a hearing or file a written objection, but this will delay your reinstatement. Most applicants pay what is owed and move forward rather than contest the amount.
Payment methods and timing
TDI accepts payment by check, money order, credit card, or electronic funds transfer. You can pay online through the TDI portal, by mail, or by phone. When you pay, make sure the payment is clearly marked with your license number so it is credited to your account correctly. If you pay by check or money order, mail it to the address listed on your account statement and allow 5 to 10 business days for processing.
Do not submit your reinstatement process until your payment has cleared and your account balance shows zero. If you submit an process with an outstanding balance, TDI will reject it and ask you to pay before resubmitting. This delays your reinstatement by at least two weeks.
If you are paying a large fine and want confirmation that it has been received and credited, contact License Holder Services after you pay and ask them to verify the transaction. This takes a few minutes and gives you peace of mind before you file your reinstatement paperwork.
What happens if you cannot pay the full amount
TDI does not offer payment plans for reinstatement fines. You must pay the full amount before your license can be reinstated. However, you can contact TDI to discuss your situation and ask whether any options exist in your specific case. In rare circumstances, TDI may consider a request for a reduced fine or a temporary arrangement, but this is not may provide and requires written approval from a supervisor.
If you cannot pay when ready, do not submit an incomplete reinstatement process. Instead, contact License Holder Services and explain your situation. Ask whether you can set up a payment schedule or whether any hardship provisions explore to your case. Document any response you receive in writing.
Another option is to wait until you have saved the full amount and then submit your reinstatement process. There is no time limit on how long you can wait to reinstate, so delaying your process until you can pay in full is better than submitting an incomplete one and being rejected.
Fines for specific violations and disciplinary actions
If your license was suspended for a specific violation — such as failure to report a criminal conviction, operating without required insurance, or mishandling client funds — TDI will have issued a disciplinary order that lists the fine amount. This order is part of your file and will be referenced in your account statement. The fine is typically higher than a standard reinstatement fine for an expired license.
Common violations that result in fines include failure to complete continuing education, failure to maintain errors and omissions insurance, failure to report a change of address, and failure to respond to a TDI inquiry. Each violation has a standard fine amount, though TDI can adjust it based on the circumstances and your history.
If you believe the fine was assessed in error or if you have paid it but it still appears on your account, contact TDI in writing with documentation of your payment or your objection. Include your license number and a clear explanation of why you believe the fine should be removed or reduced. TDI will review your request and respond within 30 days.
Reinstatement after paying fines
Once your fines are paid and your account balance is zero, you can submit your reinstatement process. You will still need to complete any required continuing education, pass a background check if applicable, and pay the reinstatement fee itself. The fine payment does not cover these other requirements — it only clears the disciplinary or lapse balance on your account.
Submit your reinstatement process through the TDI online portal or by mail, depending on your license type. Include proof of continuing education completion, a completed process form, and any other documents TDI requires. Processing typically takes 10 to 15 business days after TDI receives a complete process.
Once your license is reinstated, you will receive a new license certificate and your name will appear in the TDI license lookup database. You can then resume selling insurance in Texas. Keep your receipt or confirmation of fine payment in your records in case TDI ever questions your account history.
Frequently Asked Questions
Can I reinstate my license if I still owe fines?
No. TDI will not process a reinstatement process if any fines or fees are outstanding. Your account must show a zero balance before your process can be approved. Contact TDI to find out exactly what you owe, pay it in full, and then submit your reinstatement process.
What if I paid a fine but it still shows on my account?
Contact License Holder Services with proof of your payment, such as a cancelled check, credit card statement, or receipt. Ask them to verify that the payment was received and credited. If there is a processing delay, they can expedite it. If the payment was received but not credited, they will correct it when ready.
Are reinstatement fines the same for all license types?
No. Fines vary by license type — property and casualty, life and health, managing general agent, and other types have different fee schedules. The length of time your license was inactive also affects the amount. Contact TDI with your license type and number to get an accurate figure.
Can I negotiate or reduce the fine amount?
TDI fines are set by rule and are not negotiable in most cases. However, if you believe the fine was assessed in error or if you have extenuating circumstances, you can request a hearing or submit a written objection. This process takes time and may delay your reinstatement, so most applicants pay the fine as assessed.
How long do I have to pay fines before my license is permanently revoked?
There is no important date to pay fines and reinstate your license. Your license can remain inactive indefinitely. However, the longer you wait, the higher the fine may become due to additional years of inactivity. If you plan to return to selling insurance, paying and reinstating sooner is usually less expensive than waiting.