For-Profit Legal Service Contracts

Notice of Deregulation

For-Profit Legal Service Contract Salespersons and Companies are no longer required to be licensed by the Texas Department of Licensing and Regulation (TDLR). Chapter 953 of the Occupations Code still exists and For-Profit Legal Service Contracts can be written and sold, but a TDLR license is no longer required to do so.

SB 2065 and HB 2113 from the 85th Legislature in 2017 ended licensure for this industry effective September 1, 2019. TDLR will stop accepting new and renewal license applications for salespersons, companies, and administrators on March 31, 2019, and regulation of activities that used to require one of these licenses will end on that date as well.

TDLR Adopts Administrative Rules

The Texas Commission of Licensing and Regulation adopted the repeal of existing rules regarding the For-Profit Legal Service Contract Companies program (16 Texas Administrative Code (TAC), Chapter 57, §§57.1, 57.10, 57.21 - 57.23, 57.25, 57.70 - 57.72, 57.80, and 57.90).

The adoption justification was published in the August 23, 2019, issue of the Texas Register (44 TexReg 4475). The adopted repeal is effective September 1st, 2019.

Proposed Administrative Rules

The Texas Department of Licensing and Regulation (Department) proposes the repeal of the For-Profit Legal Service Contract Companies rules (16 Texas Administrative Code, Chapter 57, §§57.1, 57.10, 57.21 – 57.23, 57.25, 57.70 – 57.72, 57.80, and 57.90). This proposal is necessary to implement Senate Bill 2065 and House Bill 2113, 85th Legislature, Regular Session, 2017.

The Department encourages anyone interested in the For-Profit Legal Service Contract Companies program to review the proposal online. Comments may be submitted by email to erule.comments@tdlr.texas.gov. The Department will accept comments on the proposal until July 8, 2019.


Change your contact information online

TDLR is now accepting online payment for administrative penalties.