Reinstating Expired License

jennmariepantoja

New Member
6
I have a potential agent that wants to reinstate her license that expired in 2012. (Life and Health, Texas). She was told that she has to pay a $50 per credit hour penalty for 30 hours of CE to apply for a new license.
Is this correct?
 
So if anyone is wondering... I did call TDI and it is true.
In Texas, if a license expires before the licensee has done all of their CE credit, then there will be a penalty of $50 per credit hour needed.
This penalty must be paid before the license can be reinstated and/or the licensee can apply for a new license.
The CE can not just be obtained through classwork or purchasing credits, the penalty must be paid.

So, my potential agent would have to pay roughly $1500 to apply for a new license, even though it has been 4 years since her license expired.

Keep your CE current and do not let your license expire if there is an inkling you would ever want to return to the insurance industry :)
 
Wow. That's insane. California is more lenient than that!

In California, if you renew your license late, but within 1 year of the renewal date, your late fee penalty is 50% of the renewal fee on top of your renewal fee.

After that, your license completely expires and you'd have to take a new licensing class & exam.

$50 per credit hour penalty is ludicrous... so yeah, don't let it expire, especially considering how cheap and easy CE is.
 
I always warn my students about this. I tell them that even if they don't think they will use their license again, to get their CE done before the renewal date passes. I have seen agents have to pay up to $3000 to get a license reinstated because they went 2 renewal periods without doing CE. The good news is that TX CE requirements are now only 24 hours, so that if this happens the fine is only $1200(if you consider that good news!)
If you want to avoid having this happen, you need to actually surrender your license by calling the state before your renewal date comes up. Just letting it lapse will incur the fine.
 
This seems to be the case only for resident agents. For non-resident agents, if Texas has reciprocal agreement with your state, it seems that you simply need to meet your own state's requirements.
 
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