Insurance brokers help clients select the coverage that’s a good match for their insurance needs. Each state has specific education and licensing requirements for professionals to work in insurance. If you want to pursue a career as an insurance broker, reviewing a list of steps you can take to secure your Texas insurance license may be useful for you.
In this article, we discuss what an insurance broker is and explain how you can become one in Texas.
What is an insurance broker?
An insurance broker is responsible for helping clients research and purchase insurance policies. They often specialize in one type of insurance, like auto or property insurance. Typically, they analyze their client’s insurance needs and perform research to determine which policy is the best fit. Then, insurance brokers may provide several policy options that clients can choose from, which range in price and coverage. While they can’t bind insurance policies, they can assist insurance agents in purchasing policies for clients.
How to become an insurance broker in Texas
The Texas Department of Insurance establishes the requirements for individuals to become insurance brokers. Here are the steps you can take to become an insurance broker in Texas:
1. Earn a high school diploma or GED
To qualify for a Texas insurance license, earn a high school diploma or GED. While in school, try taking courses that may teach you about insurance policies or procedures or grow your customer service skills. To help you do so, consider taking business, law, finance or communication courses.
2. Consider earning a bachelor’s degree
While the Texas Department of Insurance doesn’t require professionals to earn a bachelor’s degree, completing a degree program may advance your knowledge of insurance and strengthen your skill set. You may earn a bachelor’s degree in business, economics, finance or marketing. While in college, you can consider completing an internship with an insurance agency to observe experienced brokers as they work with clients and perform research.
3. Complete a prelicensing course
Complete a prelicensing course to increase your insurance knowledge and prepare you for the licensure exam. The Texas Department of Insurance approves several prelicensing courses throughout the state. You can complete an online or in-person course. In your course, you can learn about the fundamentals of insurance and gain information about each insurance specialty, including life, health, auto, property and casualty insurance. Once you finish the course, you can receive a certificate of completion, which you can show when applying for your state insurance license.
4. Take the licensing exam
Next, take the licensing exam for the insurance specialty that you plan to pursue. Pearson VUE provides the testing for aspiring insurance brokers, and their exams include the General Lines Life and Health, General Lines Property and Casualty, Personal Lines Property and Casualty, and Life Agent. The Texas Department of Insurance allows professionals to take an exam from home, using their personal software. Pearson uses an off-site proctor to observe you by using your webcam and microphone while taking the exam.
The exams each have two sections with multiple-choice questions. The first section contains questions about basic insurance information. You can answer questions about specific insurance regulations, strategies and laws in the second section of the exam.
5. Pass a background check
After completing your licensing exam, pass a background check. You can do so by visiting the Texas Department of Public Safety to provide your fingerprints and answer questions about your criminal background. You can include a copy of your completed background check when applying for your license.
6. Apply for a Texas insurance license
After passing the licensing exam, you can apply for a Texas insurance license. You can submit an application on the National Insurance Producer Registry’s website. Be sure to apply for a Texas license. In the application, you can include your personal details, educational background and certification from a state-approved prelicensing course. Once you submit your application, you can receive a National Producer Number (NPN) number, which the National Association of Insurance Commissioners assigns. You can use this number to track your application and check the status of your license.
FAQs about becoming an insurance broker in Texas
Here are some frequently asked questions about becoming an insurance broker in Texas:
How much do insurance brokers make in Texas?
According to Indeed, the average national salary for insurance brokers in Texas is $89,529 per year. The specific salary for an insurance broker may vary depending on their experience, education level, location and skill set. For instance, an insurance broker with a bachelor’s degree in business may have the chance to earn a higher salary than a broker with a high school diploma. By pursuing additional education, experience and skill development in insurance, you may increase your salary.
How often can I renew my Texas insurance license?
You can renew your Texas insurance license every two years. The Texas Department of Insurance requires that all insurance professionals complete 24 hours of continuing education to renew their license. Complete a minimum of 12 hours in the classroom, and you can complete the other 12 online. When renewing your license, be sure to provide proof of your continuing education.
Where is the work environment for an insurance broker?
Insurance brokers often work in an office setting to research policies and work with clients. They may travel throughout the workday to meet clients and provide them with information on their policy options. Insurance brokers often work independently, though they collaborate with insurance agents to bind policies for clients.
FAQ: What Kind of High-Paying Jobs Are in Texas?
Looking for suitable employment that pays well can sometimes mean searching outside of your home state. One state worth considering in your search is Texas. As the second-largest and second-most-populous state in the union, there are plenty of opportunities to find a quality job. In this article, we answer some frequently asked questions about high-paying jobs in Texas, such as the benefits of working in Texas, why you should consider finding a job there and the kind of well-paying jobs you can expect to find.
What is the economic situation in Texas?
Texas has the second-largest economy in the United States. If it were an independent country, it would have around the ninth-largest economy in the world by gross domestic product. Of the top 50 companies on the Fortune 500 list of the largest U.S. businesses, six are based in Texas. Energy production is a large part of Texas’s economy. The state produces 40% of the country’s oil and 25% of its natural gas. It is also the largest producer of wind power in the country. Texas is also home to 10% of the country’s manufacturing businesses.
There are various types of businesses contributing to the Texan economy, including agriculture, defense, healthcare, aeronautics, computer technology and entertainment. The low tax rates in Texas also make it attractive both to businesses and residents.
Why should I work in Texas?
Besides the good economic situation, there are many other reasons why Texas is an appealing place to work. Here are a few specific benefits to take into consideration:
Typically, Texas has one of the lowest unemployment rates in the country, normally below the national average. Texas also has the second-largest workforce in the country, and that workforce continues to grow. These jobs are not just in low-income sectors but also in well-paying industries, such as healthcare and technology. As businesses take on new employees, state government assistance is available to them for customized training. This helps those businesses maintain a high skill level among their workforce.
Some of the leading businesses in the world have a significant presence in Texas. These companies are some of the largest employers in the country across a number of industries, including technology, oil, communications and pharmaceuticals.
No income tax
Texas is one of nine states where residents don’t pay state income tax. This means the local government takes less of your paycheck, leaving you with a bit more to spend. Texas businesses don’t pay corporate income taxes either, which means businesses can keep more of the money they make. This encourages businesses to grow and hire more employees.
If you come from a state that frequently experiences work closure due to inclement weather, you will appreciate Texas’s mild climate. It means workplaces are open more often during the year. Good weather also gives greater work opportunities for those in construction or other fields where you spend most of your workday outdoors.
What jobs get paid the most in Texas?
Among the jobs earning salaries of more than $100,000 per year, these are some of the ones that pay the most:
Anesthesiologist: Anesthesiologists deliver anesthetics to patients and monitor them before, during and after surgery. Their main concern is for their patient’s well-being and safety throughout the procedure.
Dentist: Dentists are medical professionals who care for their patients’ oral health. They examine, diagnose and treat problems relating primarily to the teeth and gums.
Family medical physician: Family medical physicians are trained to diagnose and treat a range of ailments for patients of all ages. They build trusting relationships with their patients and help them manage their health and navigate the healthcare system.
Psychiatrist: Psychiatrists are medical doctors trained to diagnose and treat mental health and substance abuse issues. They can assess both the mental and physical aspects of a patient’s condition and the relationship, if any, between them.
Surgeon: Surgeons are doctors who treat injury or disease by means of surgery. This treatment may involve the removal or repair of organs, bones or tissue.
Gynecologist: Gynecologists are doctors who specialize in women’s healthcare, with a particular emphasis on the reproductive system. They help manage and treat issues with fertility, pregnancy, childbirth and menstruation.
Pediatrician: Pediatricians are medical professionals trained in the mental and physical care of children. They diagnose and treat illnesses and help parents manage their children’s behavioral problems.
Chemical engineer: Chemical engineers use chemistry, biology, physics and math to research new ways to manufacture products. They also use their scientific knowledge and skills to enhance foods, drugs and chemicals and design manufacturing equipment.
Pharmacist: Pharmacists are healthcare professionals trained in the effective and safe application of medications. They are licensed to dispense prescription drugs and advise on their use and possible side effects, particularly concerning how they might react with other medications.
Financial manager: Financial managers are responsible for the financial well-being of a business. They develop fiscal strategies for the company and produce various financial reports, such as profit projections and cash flow analyses.
How can I get a high-paying job in Texas?
Here are some steps you can take to secure a high-paying job in Texas:
Research high-paying jobs in Texas. Besides the jobs listed above, there are plenty of other lucrative positions to consider in Texas. To find them, conduct your own research to see what kind of work pays the best. Target your research to industries that match your experience, skills and interests.
Assess your own skills. Compare the types of high-paying jobs available in Texas with your own skill set. You may need additional education or training in order to qualify for one of those jobs. If so, take the necessary courses or find work that will give you the skills you need.
Move to Texas. While working remotely may be an option, your prospects of finding a high-paying job in Texas increase if you move to where those jobs are located. By becoming a Texas resident, you will also not have to pay state income tax and can apply to local colleges and universities for further training if necessary.
Apply for jobs. You can apply for jobs in Texas before you move, but having a local address may increase your chances of securing employment. It also means you will be available for in-person interviews and office tours if offered.
What types of high-paying jobs can I get in Texas?
There are high-paying job opportunities in Texas within a variety of industries. The type of high-paying job you can get depends on your skills and expertise within that industry. Some of the job types that pay the most include:
If you are qualified to work in the medical field, you may be able to pursue some of the highest-paying jobs in Texas. While you are more likely to earn a better salary if you are experienced and highly trained, some entry-level salaries within the medical field can pay well above average. Among the best-paid healthcare jobs in Texas are anesthesiologists, surgeons, dentists and pediatricians.
Texas is one of the top states for technology jobs in the country, and Austin and Dallas are two of the best cities to find work in this field. Part of the reason for this is the low cost of living. However, Texas is also home to some of the best technology employers in the country. These employers include not only tech businesses but also banks and communications companies.
There are several aerospace businesses present in Texas, as well as aerospace-related government agencies. The aerospace industry comprises a number of subsectors, including space exploration, unmanned aircraft systems and aviation. You can find high-paying jobs such as aerospace engineers, airline pilots, flight engineers and air traffic controllers within these fields.
Oil and gas
Texas is the leading state in the country for the production of crude oil. It is also the leading producer of natural gas. Some of the largest oil and gas companies have a significant presence in Texas and offer some of the best-paying jobs in the state. These include geologists, hydrologists, geoscientists and petroleum engineers.
Lawyers and attorneys are usually among the highest-paid professions in the country. In Texas, lawyers are among the top 30 best-paid jobs in the state. Some of the highest-paying legal specialties in Texas are corporate law, personal injury law and bankruptcy law.