TX Surplus Lines

Texas requires a qualifying property and casualty agent license, plus completion of any required prelicensing education, before you can be licensed for surplus lines. Confirm your current eligibility and any recent changes with the Texas Department of Insurance before scheduling, since eligibility rules are set by statute and rule.

It is a computer-based, multiple-choice licensing exam administered through the state's testing vendor. You will see a mix of straight recall items and short scenario questions that ask you to apply a rule to a described transaction. The vendor publishes the current format, item count, and time limit on its candidate information pages.

Those specifics change from time to time, so they are not stated here. The official candidate handbook from the Texas Department of Insurance and its testing vendor carries the current question count, appointment length, and passing score. Treat that handbook as the only authoritative source and check it right before you schedule.

The commonly reported difficulty is not coverage knowledge but procedural detail. Candidates lose points on diligent effort documentation, the order of the placement steps, disclosure and affidavit requirements, and which risks are exempt from the declination requirement. Memorizing statutes without being able to apply them to a scenario is the most common failure pattern.

Build foundations first - general principles, then the laws and rules common to all Texas lines - because surplus lines questions assume that vocabulary. Then spend the bulk of your time on surplus lines law and placement practice, which carry the largest weights, and finish with premium tax, stamping office reporting, and recordkeeping.

Passing scores and published pass-rate statistics are set and reported by the state and its testing vendor, and they change. Look up the current passing scaled score in the official candidate handbook and any published examination statistics on the Texas Department of Insurance site rather than relying on secondhand numbers.

Retake rules, waiting periods, and fees are set by the Texas Department of Insurance and its vendor, not by this page. The candidate handbook describes the current retake process and any limit on attempts. Confirm the policy before your first attempt so you can plan your study timeline around it.

Both, but the Texas-specific portion dominates. The exam tests Texas Insurance Code Chapter 981, commissioner rules, and the state's stamping office and premium tax mechanics. Federal and general market concepts appear mainly as background, so prioritize the Texas statute and rules ahead of general surplus lines theory.

It varies with how recently you earned your P&C license and how much surplus lines exposure you have had. Practitioners with recent study habits often report a few weeks of focused review; candidates returning after a long gap need longer. Build your schedule around full-length timed practice rather than page counts.

No. Placement is limited to eligible surplus lines insurers and to risks that meet the statutory conditions, including documented diligent effort where required. The license grants authority to operate within those rules; it does not create open-ended freedom to place business with unapproved carriers.