Key Takeaways
- Texas P&C producers must act with honesty and good faith toward clients and insurers
- Producers must disclose material information about policies, including exclusions and limitations
- Premium handling must follow strict procedures including prompt remittance to insurers
- Records must be maintained for at least 4 years
- Texas CE includes mandatory ethics training hours
Last updated: January 2026
Producer Conduct and Responsibilities
Texas P&C insurance producers have legal and ethical obligations that govern their professional conduct.
Fiduciary Duties
Texas producers owe duties to their clients and insurers:
Key Duties
| Duty | Description |
|---|---|
| Honesty | Act honestly in all dealings |
| Good Faith | Fair dealing with all parties |
| Disclosure | Reveal material information about policies |
| Competence | Maintain professional knowledge |
| Care | Exercise reasonable care in placing coverage |
Agent Responsibilities
- Represent insurer's interests
- Act within scope of authority
- Transmit information accurately
- Collect and remit premiums properly
Disclosure Requirements
Texas P&C producers must disclose:
Required Disclosures
- Coverage limits, deductibles, and premiums
- Policy exclusions and limitations
- Material terms and conditions
- Surplus lines status (if applicable)
- Compensation arrangements (if requested)
- Conflicts of interest
- Named storm deductibles
When Disclosure Required
- At time of sale or recommendation
- When material facts change
- When replacing existing coverage
- When client asks specific questions
- At renewal if coverage changes
Premium Handling
Producers must handle premiums properly:
Requirements
| Requirement | Rule |
|---|---|
| Collection | Only collect authorized amounts |
| Deposit | Promptly to insurer or trust account |
| Commingling | Prohibited with personal funds |
| Conversion | Using premiums for personal use prohibited |
| Records | Detailed records required |
| Remittance | Per agreement with insurer |
Trust Accounts
If holding premiums:
- Must be in separate trust account
- Cannot mix with personal or business funds
- Detailed records required
- Subject to TDI examination
Record Keeping
Texas requires producers to maintain records:
Required Records
| Record Type | Retention Period |
|---|---|
| Applications | 4 years |
| Policy documents | 4 years |
| Client correspondence | 4 years |
| Premium records | 4 years |
| Claims records | 4 years |
Access to Records
- TDI can examine during investigations
- Must provide upon request
- Failure to maintain is a violation
Ethics Requirements
Continuing Education
Texas requires ethics training:
- 2 hours of ethics each 2-year renewal period
- Part of 24-hour CE requirement
- Must be TDI-approved course
Professional Standards
- Treat all clients fairly
- Maintain professional competence
- Avoid conflicts of interest
- Protect client confidentiality
- Report illegal or unethical conduct
Company Appointments
Appointment Requirements
| Requirement | Details |
|---|---|
| Timing | Within 15 days of first transaction |
| Fee | $10 per company |
| Duration | Until terminated |
| Termination | Reported to TDI within 30 days |
Exam Tip: Texas allows 15 days AFTER the first transaction to complete appointment, which is unusual. Most states require appointment before selling.
Test Your Knowledge
How long must Texas P&C insurance producers retain client records?
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Test Your Knowledge
How many hours of ethics CE does Texas require per 2-year renewal period?
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