FAQ: Common Questions About Texas Adjusting (2026)

Frequently Asked Questions: Texas Insurance Adjusting (2026)

These are the most commonly asked questions about obtaining and maintaining a Texas All-Lines Insurance Adjuster License. Answers are based on current Texas Department of Insurance (TDI) regulations and licensing procedures as of January 2026.

How hard is the Texas All-Lines Adjuster Exam?

The Texas All-Lines Adjuster Examination administered by Pearson VUE (exam code InsTX-ALAdj36) is considered moderately to highly challenging. The exam consists of 150 multiple-choice questions covering Texas Insurance Code, claims procedures, policy interpretation, ethics, and adjuster responsibilities. Candidates must achieve a minimum score of 70% to pass.

First-attempt pass rates: Industry data suggests that approximately 60-70% of candidates pass the Pearson VUE exam on their first attempt, meaning 30-40% require multiple attempts. The exam is closed-book, proctored in-person at testing centers, and operates under strict time limits—creating a high-pressure environment that contributes to the difficulty.

✓ THE EXAM EXEMPTION ALTERNATIVE

However, approximately 90% of Texas adjusters never take the Pearson VUE state exam. Texas offers a pre-licensing course exemption that allows you to bypass the state exam entirely. By completing a TDI-approved 40-hour pre-licensing course and passing the course provider’s open-book final exam (from home), you satisfy the examination requirement without ever visiting a Pearson VUE testing center.

The course exemption route offers significantly higher success rates (95%+ pass rates), lower stress, unlimited retakes at no additional cost, and better educational value. Most aspiring adjusters choose this pathway over the traditional state exam.

Learn more: How to Skip the Texas Adjuster State Exam (2026 Exemption Guide)

How long does it take to get licensed?

The typical timeline from starting the licensing process to receiving your active Texas All-Lines Adjuster License is 2-4 weeks, assuming you use the pre-licensing course exemption pathway (the route chosen by 90% of adjusters).

Timeline breakdown:

  • Week 1-2: Complete 40-hour pre-licensing course. Most students finish the course in 3-7 days depending on their schedule. Self-paced online courses allow you to work through material as quickly or slowly as needed.
  • Days 1-2 after course completion: Schedule and complete fingerprinting. IdentoGO appointments are typically available within 24-48 hours in major metropolitan areas. Fingerprint results transmit to TDI within 24-48 hours after your appointment.
  • Same day as fingerprinting: Submit license application. Applications are submitted through NIPR or TDI’s SIRCON system immediately after completing fingerprinting.
  • Week 3-4: TDI processes application. Applications typically process within 7-10 business days after TDI receives fingerprint clearance and all required documents.

Expedited timeline (1-2 weeks): Highly motivated candidates can compress the timeline by completing the pre-licensing course in 3-4 days and scheduling fingerprinting immediately. Some applicants receive licenses within 10-14 days of starting the process.

Pearson VUE exam pathway timeline: If you choose to skip the pre-licensing course and take the Pearson VUE state exam instead, add 2-4 weeks to the timeline for exam scheduling and potential retake attempts if you don’t pass on the first try.

Can I get a license with a felony conviction?

A felony conviction does not automatically disqualify you from obtaining a Texas insurance adjuster license. Texas Department of Insurance evaluates criminal history on a case-by-case basis, considering multiple factors before making licensing decisions.

Factors TDI considers when reviewing criminal history:

  • Nature of the offense: Crimes involving fraud, theft, dishonesty, or breach of fiduciary duty receive greater scrutiny than non-financial offenses
  • Time elapsed since conviction: Older convictions (10+ years ago) with no subsequent criminal activity weigh less heavily than recent convictions
  • Evidence of rehabilitation: Completion of probation, parole compliance, restitution payments, educational achievements, stable employment history, and character references demonstrate rehabilitation
  • Relevance to insurance adjusting: Convictions directly related to insurance, financial services, or positions of trust are more likely to result in denial than unrelated offenses

⚠️ MANDATORY DISCLOSURE REQUIREMENT

All criminal convictions must be disclosed on your license application, including felonies, misdemeanors, and deferred adjudication outcomes. Failure to disclose criminal history—even if you believe the conviction is expunged, sealed, or too old to matter—constitutes fraud on your application and will result in immediate application denial and potential permanent licensing ban.

Application process with criminal history: If you have a criminal history, complete the standard license application and answer background questions truthfully. TDI’s background check will reveal your criminal history regardless of disclosure, so honesty is mandatory. In some cases, TDI may request additional documentation including:

  • Certified copies of court records, sentencing documents, and disposition orders
  • Proof of restitution payments or completion of court-ordered requirements
  • Letters of recommendation from employers, probation officers, or community leaders
  • Written explanation of the circumstances surrounding the offense and steps taken toward rehabilitation

Processing time with criminal history: Applications involving criminal history review typically take longer to process (3-6 weeks) compared to standard applications (7-10 business days). TDI may request additional information or schedule interviews before making licensing decisions.

Right to appeal: If TDI denies your application based on criminal history, you have the right to appeal the decision and present additional evidence of rehabilitation. Consult with a Texas insurance licensing attorney if you receive a denial and believe you qualify for licensure.

Do I have to live in Texas?

No. Texas does not require physical residency or proof of Texas domicile to obtain an All-Lines Adjuster License. You can live anywhere in the United States and obtain a Texas license.

The Designated Home State (DHS) framework: Texas operates as a Designated Home State under the National Association of Insurance Commissioners (NAIC) uniform licensing framework. This system was designed specifically to accommodate adjusters who live in states that do not license insurance adjusters.

Who should obtain a Texas DHS license:

  • Residents of non-licensing states (Colorado, Illinois, Kansas, Missouri, Pennsylvania, Indiana, Michigan, Ohio, Wisconsin, and others)
  • Anyone seeking a license that provides access to the highest number of reciprocal states
  • Adjusters planning to work catastrophe deployments across multiple states
  • New adjusters who want the fastest, most cost-effective path to multi-state licensure

💡 STRATEGIC ADVANTAGE

Texas is the most strategically valuable DHS license available because it offers reciprocity with Florida, Georgia, Oklahoma, Louisiana, and Alabama—the highest-volume catastrophe claim states in the nation. Even if you live in Texas and could qualify for a resident license, obtaining a Texas license as a non-resident (if you originally came from a non-licensing state) provides the same benefits.

Application address: You will use your actual residential address (wherever you live) on your license application. Texas does not require you to establish a Texas mailing address or maintain any physical presence in the state.

No residency verification: Unlike some professional licenses (such as contractor licenses), Texas does not verify residency status or require proof of Texas domicile for adjuster licensing. Your home state or country of residence is irrelevant to your eligibility for a Texas license.

Is the license valid in other states?

Yes. Texas maintains extensive reciprocal agreements with multiple states, allowing Texas-licensed adjusters to obtain licenses in reciprocal states through simplified applications without additional examinations.

States with full reciprocity (as of 2026):

  • Florida – Full reciprocity, no exam required (detailed guide)
  • Georgia – Full reciprocity, no exam required (detailed guide)
  • Oklahoma – Full reciprocity, no exam required (detailed guide)
  • Louisiana – Full reciprocity, no exam required
  • Alabama – Full reciprocity, no exam required

These five reciprocal states collectively generate the highest volume of catastrophe insurance claims in the United States due to hurricane, tornado, and severe weather activity. Texas reciprocity provides immediate access to the most lucrative deployment opportunities in the adjusting industry.

Non-reciprocal states requiring separate examinations:

  • California – No reciprocity, separate exam required (detailed guide)
  • New York – No reciprocity, separate exam required (detailed guide)
  • Hawaii – No reciprocity, separate exam required

How reciprocal licensing works: When you apply for a reciprocal license in Florida, Georgia, Oklahoma, Louisiana, or Alabama, you submit a non-resident license application through NIPR. The reciprocal state verifies your Texas license status electronically and issues your reciprocal license without requiring you to take their state examination. Total cost per reciprocal license: typically $50-$75. Processing time: 5-10 business days.

Emergency licensing: Some non-reciprocal states offer temporary emergency adjuster licenses during declared catastrophe events. These temporary licenses allow Texas-licensed adjusters to deploy to disaster areas without obtaining permanent state licenses, though they expire when the emergency declaration is lifted (typically 90-180 days).

How much does it cost to get licensed?

The total cost to obtain a Texas All-Lines Adjuster License ranges from approximately $250 to $500, depending on your choice of pre-licensing course provider.

Cost breakdown:

  • Pre-licensing course: $150 – $400 (varies by provider; includes course materials and final exam)
  • State application fee: $50.00 (non-refundable)
  • Fingerprint fee: $47.00 – $50.00 (varies by IdentoGO location)

Total investment: $247 – $500

📊 Calculate Your Exact Cost

Use our interactive cost calculator to estimate your total licensing expenses based on current course pricing: Texas Adjuster Start-Up Cost Calculator

Optional additional costs:

  • Study materials (if taking Pearson VUE exam instead of course): $50-$100
  • Pearson VUE exam fee (if not using course exemption): $75 per attempt
  • Professional liability insurance: $300-$500 annually (optional but recommended for independent adjusters)
  • Business formation (LLC): $300-$500 (optional for independent adjusters)

Return on investment: The $250-$500 licensing cost represents less than one week of income for staff adjusters (median salary $69,575/year) or one day of work for independent catastrophe adjusters (daily rates $500-$600). The license remains valid for two years with minimal renewal costs ($50 renewal fee + CE course fees).

Official Licensing Portal (Sircon)

Verify Requirements at Sircon

How often do I need to renew?

Texas All-Lines Adjuster licenses expire every two years on the last day of your birth month. For example, if you were born in June and obtained your license in January 2026, your first renewal deadline is June 30, 2028.

Renewal requirements:

  • 24 hours of continuing education (CE), including mandatory 3 hours of Ethics
  • $50.00 renewal fee
  • Updated contact information and employment details in Sircon

Late renewal penalty: If you renew within 90 days after expiration, you must pay an additional $50.00 late penalty fee (total $100). If your license remains expired for more than 90 days, you must complete the entire initial licensing process again (new course, fingerprints, application).

⚠️ CRITICAL DEADLINE WARNING

Working as an adjuster with an expired license is illegal and may result in administrative penalties, fines, and potential criminal charges. Your license is invalid from the expiration date forward—there is no grace period during which you can continue working while you complete renewal requirements.

Detailed renewal instructions: Texas Adjuster License Renewal Guide (2026)

How much do Texas adjusters make?

Texas insurance adjuster compensation varies significantly based on employment type, experience level, and deployment frequency.

Staff adjusters (W-2 employees): $60,000 – $88,000 annually, with median salaries around $69,575. Staff positions offer predictable income, benefits (health insurance, 401k, paid time off), and career advancement opportunities.

Independent catastrophe adjusters (1099 contractors): $500 – $600+ per day during deployments, plus expense reimbursement. Experienced independent adjusters routinely earn $100,000+ during 6-month hurricane seasons, though income is concentrated during peak storm activity (June-November) with minimal earnings during off-season months (December-May).

Entry-level reality: New adjusters with less than two years of experience typically earn $39,543 – $47,500 in staff positions. However, newly licensed adjusters deployed to major catastrophes can earn $10,000-$15,000 in their first month—more than three months of entry-level staff salary.

Top-paying Texas cities:

  • Odessa: $75,000-$85,000 average (15% above state median)
  • Austin: $70,000-$80,000 average
  • Dallas-Fort Worth: $68,000-$78,000 average

Comprehensive salary data: Texas Insurance Adjuster Salary Guide (2026 Edition)

What are the continuing education requirements?

Texas requires 24 hours of continuing education (CE) during each two-year renewal period, including a mandatory 3 hours of Ethics coursework.

CE hour breakdown:

  • 3 hours Ethics: Must be explicitly designated as Ethics courses by TDI-approved providers (mandatory, non-negotiable)
  • 21 hours general CE: Any combination of TDI-approved courses covering adjuster-relevant topics

Classroom requirement: Historically, Texas required at least 50% of CE hours (12 of 24 hours) to be completed through classroom instruction or “classroom equivalent” formats (live webinars). However, CE delivery method rules are subject to change. Verify current classroom percentage requirements with TDI or your CE provider before completing your CE.

Critical rule: Pre-licensing courses do NOT count toward your 24-hour CE requirement. The 40-hour course you completed for initial licensure serves a different regulatory purpose and cannot be applied to renewal CE.

No credit carryover: CE hours completed in excess of the 24-hour requirement do not carry over to future renewal periods. If you complete 30 hours during your current period, only 24 hours count—the additional 6 hours provide no credit toward your next renewal.

Complete CE requirements guide: Texas Adjuster License Renewal Guide (2026)

What is a Designated Home State (DHS) license?

A Designated Home State (DHS) license is an insurance adjuster license issued by a state to a non-resident whose home state does not license adjusters. The DHS framework was established by the National Association of Insurance Commissioners (NAIC) to create licensing portability for adjusters working across state lines.

Why DHS licenses matter: Many states (Colorado, Illinois, Kansas, Missouri, Pennsylvania, Indiana, Michigan, Ohio, Wisconsin, and others) do not require or issue insurance adjuster licenses. Before the DHS framework existed, residents of these non-licensing states could not obtain reciprocal licenses in states that do require licensing—effectively excluding them from catastrophe adjusting work.

How DHS licensing works:

  1. Resident of a non-licensing state applies for a Texas All-Lines Adjuster License
  2. Texas issues the license designating Texas as the applicant’s “home state” for licensing purposes
  3. The Texas DHS license serves as the foundation for applying for reciprocal licenses in Florida, Georgia, Oklahoma, Louisiana, Alabama, and other states
  4. Reciprocal states recognize the Texas DHS license identically to Texas resident licenses

DHS vs. resident licenses: DHS licenses and resident licenses are functionally identical. Both authorize the holder to adjust claims in Texas and serve as qualifying licenses for reciprocal applications in other states. The only difference is the administrative designation in licensing systems—there are no scope limitations, fee differences, or renewal requirement variations between DHS and resident licenses.

Why Texas is the best DHS state: Multiple states offer DHS licensing, but Texas provides the most strategic value because:

  • Extensive reciprocity network (Florida, Georgia, Oklahoma, Louisiana, Alabama)
  • Access to the highest-volume catastrophe claim states in the nation
  • Lowest licensing costs ($250-$500 total)
  • Fastest processing times (2-4 weeks)
  • Pre-licensing course exemption (skip the state exam)

Eligibility: If you live in a state that does not license adjusters, you automatically qualify for a Texas DHS license. No additional requirements beyond the standard licensing process (40-hour course or exam, fingerprints, application).

Still Have Questions?

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