Pre-Paid Legal Services Contracts from the Texas Department of Insurance

Texas Department of Insurance

For-Profit Sales of Pre-Paid Legal Services Contracts

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On March 1, 2004, for-profit prepaid legal services contracts became regulated by the Texas Department of Licensing and Regulation (TDLR). All persons and companies selling pre-paid legal service contracts on or after March 1, 2004 must be registered with TDLR.

Senate Bill 597 , 78th Regular Texas Legislative Session, transferred the regulation of for-profit prepaid legal services contracts from the Texas Department of Insurance to TDLR. The bill did not transfer or cancel any insurance agent's license. An insurance agent license that was used for selling pre-paid legal insurance contracts continued in force until it expired, was canceled on request of the agent, or is/was revoked by TDI. A person wishing to keep an insurance agent license should renew it to avoid expiration.

Any prepaid legal services contract issued by an insurance company prior to March 1, 2004 remains in effect until its expiration date. Insurance companies may renew such a contract only if the insurer has registered with TDLR.

For more information about the new registration requirements, please visit TDLR's web site.

Questions regarding the new registration requirements should be directed to TDLR at legalservicecontracts@license.state.tx.us .

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Last updated: 05/11/2009