Licensed Insurance Consultant Demands TDI Rescind License – Will E&O Be Affected?

          Molly Mulebriar reports that a prominent South Texas insurance consultant has requested the Texas Department of Insurance to suspend his consulting license. Mulebriar reports that the license impedes successful endeavors to garnish business with political subdivisions in deep South Texas.

Unlicensed insurance consultants have recently been hired by several political subdivisions in South Texas over licensed consultants vying for the same business. At Willis ISD for example, during a recent board meeting one of the trustees stated that a consulting license is not needed and that to limit applicants to only those that have a consulting license restricts the process of selecting a consultant.

Do doctors really need a license these days, or attorneys, or CPA’s , or hunters and fishing enthusiasts? How about Southwest Airline pilots? To require a license to fly the plane would simply limit the airline’s pool of talent from prospective job seekers.  To require doctors to have a license only limits the talent pool and we all know there is a serious shortage of doctors these days. Doing away with license requirements makes economic sense and may help with the current unemployment problem in this country.

Mulebriar reports that there may be one major problem with working as an insurance consultant without a license in Texas – E&O coverage does not cover illegal activity. If a unlicensed consultant makes a poor recommendation and is sued, the E&O cover may deny coverage since the “consultant” was acting illegally without the proper licenseing.

When asked, the deflated and soon to be unlicensed insurance consultant responded “It’s ok, Im going to buy my E&O from the same offshore company a local hospital bought from several years ago for wind and storm damange.”

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