Can You Get a Texas Insurance License With a Criminal Record? Here's Exactly How It Works

Yes, you can get a Texas insurance license with a criminal record in most cases. A past conviction does not automatically disqualify you. The Texas Department of Insurance (TDI) only denies licenses for offenses that directly relate to the business of insurance, and even then it must weigh your rehabilitation before it can say no. The one hard stop is a federal rule, Section 1033, that applies to felonies involving dishonesty or breach of trust, and there is a formal path around that too.

Here is exactly how TDI reviews your record, which convictions actually matter, and how to apply with a record without getting blindsided.

The short answer, by situation

• Misdemeanor (theft, DUI, possession, assault): Usually approved. Disclose it, attach the paperwork, and expect a normal review.
• Old felony unrelated to money or fraud: Usually approved after review. TDI looks at how long ago it was and what you have done since.
• Felony involving dishonesty or breach of trust (fraud, embezzlement, theft, forgery): You are a "prohibited person" under federal law and must get 1033 written consent before TDI can license you.
• Any offense you hide: This is the real license killer. Nondisclosure is treated as fraud on the application.

What TDI actually checks

TDI runs a full background check on every applicant. You submit fingerprints electronically through IdentoGO, and those prints are sent to the Texas Department of Public Safety and the FBI. Your criminal history comes back to TDI directly, so there is no version of this where a conviction stays hidden.

The application also asks a series of yes/no background questions covering:

• Prior criminal charges, convictions, and deferred adjudication
• Previous license denials, suspensions, or revocations in any state
• Regulatory or administrative actions against you
• Bankruptcies and unpaid tax or child support obligations

TDI cross-references your answers against the background results. When your answers match the record and you have explained anything relevant, the review moves quickly. When they do not match, that mismatch becomes the problem.

The two-part test that decides your license

Texas evaluates a criminal record on two separate tracks. You need to clear both.

Part 1: Does the offense "directly relate" to insurance? (State law)

Under Texas Occupations Code Chapter 53, TDI can only disqualify you for a conviction that directly relates to the duties and responsibilities of an insurance agent. Offenses that directly relate include:

• Any offense where fraud, dishonesty, or deceit is an essential element
• Theft, embezzlement, forgery, and money laundering
• Any criminal violation of the Texas Insurance Code
• Financial-industry crimes under any state or federal law
• Sexually violent offenses and offenses listed in Code of Criminal Procedure Article 42A.054

If your offense is not on this kind of list, it generally does not give TDI grounds to deny you. A bar fight from a decade ago, a single DUI, or a minor drug charge does not directly relate to selling insurance.

Part 2: Is it a federal "prohibited person" offense? (1033)

Federal law, 18 U.S.C. Section 1033, bars anyone convicted of a felony involving dishonesty or breach of trust from working in the business of insurance. This is stricter than state law and it is not optional for TDI to enforce. If your felony fits this description, you cannot be licensed until you obtain written consent to engage in the business of insurance. That is the 1033 waiver.

How the 1033 written consent process works

If you are a prohibited person, do not just submit the license application and hope. TDI will not process the license until the 1033 consent is resolved. Handle it in this order:

1. Complete the Application for Written Consent to Engage in the Business of Insurance. This is a separate, notarized request submitted to TDI.
2. Attach the supporting documentation. Court records, proof the sentence is complete, and evidence of rehabilitation.
3. Submit it and wait for the decision. TDI reviews the request and decides whether to grant consent.
4. Then file (or continue) your license application. With consent granted, your record no longer blocks licensure at the federal level.

Getting consent removes the automatic federal bar. It does not erase the state-level review, but it clears the single biggest obstacle.

How TDI weighs your record in your favor

Texas law does not let TDI deny you just because a conviction exists. Under Occupations Code Section 53.023, TDI must consider rehabilitation evidence before denying a license. That includes:

• A steady employment record
• Support of your dependents
• A record of good conduct since the offense
• Payment of restitution, fines, and other financial obligations
• Letters of recommendation and character references

This is where your application is won. The more time between the offense and today, and the stronger your track record since, the more favorably TDI reviews it. Build this evidence into your submission instead of waiting to be asked for it.

What you have to disclose (and what you do not)

Disclose anything the application question actually captures. TDI's questions reach deferred adjudication, pending charges, and out-of-state offenses, not just final Texas convictions. When a question covers your situation, answer yes and attach a short written explanation plus the court paperwork.

You generally do not have to report minor traffic violations, such as a speeding ticket. Read each question word for word, because the question defines what counts, not your assumption about what "should" matter.

The fastest way to lose a license you would have otherwise gotten is to leave something off. Nondisclosure is treated as a material misrepresentation. TDI can deny or revoke on that basis alone, even when the underlying offense would have been approved.

Deferred adjudication, dismissed charges, and old convictions

• Deferred adjudication: Still reportable when the question asks about it, and it can still be considered even without a final conviction. Disclose it.
• Dismissed or expunged charges: If a charge was truly expunged, it is removed from your record. If it was only dismissed or sealed, it can still appear on the FBI check, so disclose when the question reaches it.
• Old convictions: Age works in your favor. A dishonesty felony still triggers 1033 regardless of age, but for state-level review, a decade of clean, documented living is strong rehabilitation evidence.

How Arizona and Pennsylvania handle a criminal record

The federal 1033 rule is national, so a felony involving dishonesty or breach of trust requires written consent in every state, including Arizona and Pennsylvania. What differs is the state-level review:

• Arizona: The Department of Insurance and Financial Institutions reviews criminal history case by case and can request court documents and a written explanation. Disclosure on the application is mandatory, and Arizona fingerprints applicants as part of licensing.
• Pennsylvania: The Insurance Department reviews convictions for a direct relationship to insurance duties, similar to the Texas standard, and expects full disclosure with supporting records.

In all three states the playbook is identical: disclose everything, document your rehabilitation, and resolve 1033 first if it applies.

Do not let a record keep you from starting

A criminal record is a review step, not a locked door. Thousands of Texas agents carry one. What actually stops people is guessing wrong on the application, hiding a charge, or never starting because they assumed they were disqualified.

You control the part that matters most: passing the exam and submitting a clean, honest, well-documented application. Start there. Ava Pro Licensing built its Texas pre-licensing course to take you from zero to exam-ready, and the first module is free so you can begin today without spending a dollar. Open your free first module at avaprolicensing.com and get moving on the license.

Frequently asked questions

Can you get a Texas insurance license with a felony?

Often, yes. A felony only blocks your license automatically if it involved dishonesty or breach of trust, which triggers a federal 1033 written consent requirement. Other felonies are reviewed case by case under Texas Occupations Code Chapter 53, and TDI must weigh your rehabilitation before it can deny you.

Does a misdemeanor stop you from getting a Texas insurance license?

Most misdemeanors do not. TDI only cares about offenses that directly relate to the duties of an insurance agent, such as fraud, theft, or deceit. A single DUI, a minor drug possession charge, or an old bar fight usually does not disqualify you, but you still have to disclose it if the application asks.

What is a 1033 waiver and do I need one?

Section 1033 is a federal law that bars anyone convicted of a felony involving dishonesty or breach of trust from working in insurance until they get written consent. If that describes your record, you must apply to TDI for 1033 written consent. Your license application will not be processed until that consent is granted.

Do I have to report a dismissed charge or deferred adjudication?

Read the application question exactly. TDI's questions cover deferred adjudication and pending charges, not just final convictions. When a question captures your situation, disclose it and attach the paperwork. Nondisclosure is treated as a material misrepresentation and is a faster route to denial than the conviction itself.

Will a criminal record show up even if I do not report it?

Yes. TDI runs your fingerprints through the Texas Department of Public Safety and the FBI. Anything on those records surfaces. The smart move is to disclose first and explain, because TDI weighs honesty and rehabilitation in your favor.