If you have a felony conviction or criminal record and want to become a Texas insurance adjuster, you’re facing an important question: Will your criminal background automatically disqualify you? This guide provides a comprehensive, legally accurate answer based on Texas Occupations Code Chapter 53 and Texas Department of Insurance (TDI) regulations as of 2026.

The Legal Framework: Texas Occupations Code Chapter 53

Texas law governing professional licensing with criminal backgrounds is found in Texas Occupations Code Chapter 53 and Texas Administrative Code 28 TAC § 1.502. These laws establish that:

• TDI has authority to deny, suspend, or revoke licenses based on criminal convictions
• Each case must be evaluated individually (no blanket bans)
• The key question is whether the crime “directly relates” to adjuster duties
• TDI must consider rehabilitation evidence before making a decision

The “Directly Relates” Test (Four Factors)

Per Texas Occupations Code § 53.022, TDI evaluates four factors when determining if a conviction “directly relates” to adjuster work:

Factor	What TDI Considers
1. Nature and Seriousness of Crime	More serious crimes (fraud, embezzlement) weighted more heavily than minor offenses
2. Relationship to License Purpose	Does the crime relate to trustworthiness in handling financial matters? (Core purpose of adjuster licensing)
3. Opportunity for Similar Crime	Does the adjuster role provide opportunity to repeat the same type of crime?
4. Ability to Perform Duties	Does the conviction reflect on trustworthiness, integrity, or judgment needed for adjusting?

High-Risk Crimes: What “Directly Relates” to Adjusting

Because insurance adjusters handle large sums of money, investigate claims, and make independent financial decisions, crimes involving fraud, dishonesty, or breach of trust are explicitly considered “directly related” to adjuster duties.

Crimes That Will Face Strict Scrutiny

Crime Category	Examples	Why It Matters
Insurance Fraud	Submitting false claims, inflating damages, falsifying documents	You defrauded insurance once; TDI will question your trustworthiness to handle claims
Fraud Offenses	Wire fraud, mail fraud, credit fraud, forgery, false statements	Fraud reflects dishonesty; adjusters must be trustworthy with financial decisions
Embezzlement / Theft by Fiduciary	Stealing from employer while in position of trust	Adjusters are fiduciaries; embezzlement shows inability to be trusted with client funds
Money Laundering	Concealing proceeds, financial sophistication crimes	Demonstrates sophisticated financial misconduct; adjusters handle large payments
Crimes of Moral Turpitude	Perjury, bribery, obstruction of justice	Shows character defect affecting honesty and trustworthiness

Lower-Risk Crimes (May Not “Directly Relate”)

Crimes that do NOT involve financial dishonesty or breach of trust may be considered less relevant to adjuster duties:

• DUI/DWI (especially if 5+ years ago with no pattern)
• Drug possession (simple possession, not trafficking)
• Public intoxication or disorderly conduct
• Non-violent misdemeanors (if isolated and long ago)

However, even these crimes are evaluated for rehabilitation. Recent convictions (less than 5 years ago) or patterns of criminal behavior still raise concerns about your judgment and reliability.

The 5-Year Rule: Does Time Erase Your Conviction?

Texas Occupations Code § 53.021(a)(2) establishes what’s commonly called the “5-year rule”:

Step-by-Step Application Process with Criminal Record

STEP 1 Pre-Application Criminal History Evaluation (OPTIONAL)

Before investing $250-$500 in licensing, consider requesting a Criminal History Evaluation from TDI:

• Visit: tdlr.texas.gov/crimhistoryeval.htm
• Complete criminal history questionnaire for each conviction
• Pay $10 fee
• TDI reviews within 90 days and sends letter: “Potentially Eligible” or “Potentially Ineligible”
• Note: Letter is guidance only, not binding

STEP 2 Pass the All-Lines Exam

Your criminal background does NOT prevent you from taking the exam. You must pass within 12 months before applying for your license.

STEP 3 Fingerprint Submission via IdentoGO

There is NO special fingerprinting process for applicants with criminal records. Standard IdentoGO fingerprinting is sufficient:

1. Visit TDI Initial Application Portal to generate your SERVICE CODE
2. Schedule appointment at IdentoGO: (888) 467-2080
3. Electronic fingerprints submitted to Texas DPS and FBI
4. Receive receipt showing DPS received prints (valid 1 year)

STEP 4 Complete Sircon Application with FULL DISCLOSURE

Visit www.sircon.com/texas and select “New Adjuster License”

STEP 5 Upload Required Documents

If you answered YES to criminal history questions, you MUST upload these documents to Sircon:

Document Type	What to Include
Criminal History Questionnaire	TDI form (one per conviction) explaining circumstances
Court Documents	Charging document (indictment), conviction order, sentencing order
Proof of Payment	Receipts showing fines, restitution, court costs paid in full
Discharge Papers	Certificate of completion from probation/parole
Character Reference Letters	3-5 letters from employers, clergy, community leaders (NOT family)
Employment Verification	Letters from employers covering work history since conviction
Rehabilitation Documentation	GED certificate, job training, treatment completion, volunteer work
Personal Statement	2-3 pages explaining conviction, rehabilitation, fitness for adjuster work

What Rehabilitation Evidence to Provide

Per Texas Occupations Code § 53.023, TDI must consider the following rehabilitation factors before denying your license:

Mandatory Proof of Rehabilitation

1. Steady Employment Record – Current job letter, resume, tax returns for past 3-5 years
2. Support of Dependents – Child/spousal support payment records (if applicable)
3. Record of Good Conduct – No new arrests or convictions since original offense
4. Payment of Financial Obligations – Receipts showing fines, restitution, court costs paid

Highly Persuasive Evidence

• Character reference letters (3-5 minimum) from employers, clergy, educators, parole officers
• Educational achievements – GED, vocational certificates, adjuster course completion
• Treatment completion – Substance abuse programs, mental health counseling
• Community service – Volunteer work, nonprofit involvement
• Personal statement accepting responsibility, explaining change

The Penalty for Non-Disclosure

Attempting to hide your criminal record is the worst possible strategy. Here’s what happens if you fail to disclose:

TDI WILL discover your conviction through the FBI fingerprint check. The background check reveals ALL arrests, convictions, and court records. Omitting your conviction guarantees denial and potential prosecution.

TDI Review Timeline & Possible Outcomes

Processing Time

• Standard applications: 15-30 days
• Criminal history review: 45-90 days (requires Enforcement Division review)

Three Possible Outcomes

1. APPROVAL – TDI determines you are fit for licensure despite criminal history
2. CONDITIONAL APPROVAL – License granted with conditions (bonding requirements, supervision, reporting)
3. DENIAL – TDI determines conviction “directly relates” and rehabilitation insufficient

If Your Application is Denied

You have the right to appeal:

1. Administrative Hearing at SOAH (State Office of Administrative Hearings)
   • Request within deadline in denial letter
   • Present evidence, witnesses, testimony before judge
   • Judge issues Proposal for Decision
   • TDI Commissioner makes final decision
2. Judicial Review (after exhausting administrative remedies)
   • File suit in district court
   • Court reviews TDI’s decision for legal errors

Recommendation: If likely to be denied, consult with an administrative law attorney who specializes in professional licensing.

Risk Assessment: Should You Apply?

Final Recommendation

If you have a criminal record and want to become a Texas adjuster, follow these steps:

1. Request a Criminal History Evaluation from TDI BEFORE investing in the licensing course ($10 fee, 90-day review)
2. Be 100% honest on your Sircon application – disclose everything
3. Gather overwhelming rehabilitation evidence – court documents, character letters, employment verification, personal statement
4. Emphasize time elapsed – if 10+ years, highlight your stable, lawful life since then
5. Accept full responsibility – never make excuses or blame others in your personal statement
6. Consider legal counsel – if high-risk conviction, hire administrative law attorney

Bottom line: A felony conviction does not automatically disqualify you, but the type of crime, how long ago it occurred, and your rehabilitation efforts will determine whether TDI approves your license.