Key Takeaways
- Texas producers must act in good faith and with reasonable care
- Producers must disclose material information to clients
- Premium handling must follow strict procedures including prompt remittance
- Records must be maintained for at least 5 years
- CE includes mandatory ethics training hours
Last updated: January 2026
Producer Conduct and Responsibilities
Texas insurance producers have legal and ethical obligations that govern their professional conduct.
Fiduciary Duties
Texas producers owe duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Good Faith | Act honestly in all dealings |
| Disclosure | Reveal material information |
| Competence | Maintain professional knowledge |
| Care | Exercise reasonable care |
| Confidentiality | Protect client information |
Agent vs. Broker
| Type | Primary Duty To |
|---|---|
| Agent | Insurer (but fair to client) |
| Broker | Client |
Disclosure Requirements
Texas producers must disclose:
Required Disclosures
- Material terms and conditions of policies
- Limitations and exclusions
- Compensation arrangements (if asked)
- Conflicts of interest
- All relevant information for informed decisions
When Disclosure Required
- At time of sale or recommendation
- When material facts change
- When replacing existing coverage
- When client asks specific questions
Premium Handling
Producers must handle premiums properly:
Requirements
| Requirement | Rule |
|---|---|
| Collection | Only collect authorized amounts |
| Deposit | Promptly to insurer or trust account |
| Commingling | Prohibited |
| Conversion | Using premiums for personal use prohibited |
| Records | Detailed records required |
Trust Accounts
If holding premiums:
- Must be in separate trust account
- Cannot mix with personal funds
- Detailed records required
- Subject to TDI examination
Record Keeping
Texas requires producers to maintain records:
Required Records
| Record Type | Retention Period |
|---|---|
| Applications | 5 years |
| Policy documents | 5 years |
| Client correspondence | 5 years |
| Premium records | 5 years |
| Replacement forms | 5 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 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
Test Your Knowledge
How long must Texas insurance producers retain client records?
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Test Your Knowledge
How many hours of ethics CE does Texas require per renewal period?
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