Frequently Asked Questions

General Program Questions

Licensing Questions – Companies

Renewal Questions – Companies

Licensing Questions – Sales Representatives

Renewal Questions – Sales Representatives

Licensing Questions – Administrators

Renewal Questions – Administrators

Compliance Questions

Consumer Protection Questions

Enforcement Questions

How to Stay Informed About Program Changes


GENERAL PROGRAM QUESTIONS
  1. What is a legal service contract?
  2. What is a group legal service contract?
  3. What law governs legal service contracts and when did it become effective?
  4. Who is required to be registered under the Act?
  5. Do all legal service contracts fall under the jurisdiction of this Act?
  6. Were there any changes to the Act as a result of the 2009 legislative session?

1. What is a legal service contract?

It is an agreement under which a company obtains legal services for a consumer through a contracting attorney for a separately stated fee.

2. What is a group legal service contract?

It is a legal service contract that is entered into by an employer or association on behalf of its employees or association members who choose to purchase the service.

3. What law governs legal service contracts and when did it become effective?

Texas Occupations Code, Chapter 953, the For-Profit Legal Service Contracts statute (“Act”), took effect September 1, 2003. Senate Bill 597, 78th Legislature, Regular Session, 2003 transferred the regulation of for-profit legal service contract companies, sales representatives, and administrators from the Texas Department of Insurance to TDLR.

4. Who is required to be registered under the Act?

Companies, sales representatives, and administrators working in the for-profit legal service contract industry are required to be registered. Non-profit legal contract companies, sales representatives, and administrators are not required to register with TDLR.

5. Do all legal service contracts fall under the jurisdiction of this Act?

No. This chapter does not apply to:

  • a nonprofit legal services corporation under Chapter 961, Insurance Code;
  • an automobile club supplying services under Chapter 722, Transportation Code;
  • a prepaid legal services program under Chapter 951, Occupations Code;
  • a lawyer referral service under Chapter 952, Occupations Code;
  • a retainer contract between an attorney and a client, and similar contracts made with a group of clients involved in the same or closely related legal matters; or
  • a contingency fee contract between an attorney and a client.

6. Were there any changes to the Act as a result of the 2009 legislative session?

No. The last changes to the Act were in 2005, when minor changes were made to certain Insurance Code references within the Act.


LICENSING QUESTIONS - COMPANIES
  1. Who is a “Legal Service Contract Company” or “Company”?
  2. How much does it cost to register as a legal service contract company?
  3. Can I pay my registration fee by check or by credit card?
  4. For how long is a legal service contract company registration valid?
  5. Can I register online?
  6. What are the requirements to register as a legal service contract company?
  7. What are the financial security requirements for legal service contract companies?
  8. How do I obtain a surety bond?
  9. What are the requirements for using a surety bond?
  10. What are the requirements for using a certificate of deposit?
  11. What are the requirements for using an original letter of credit?
  12. How long do I have to maintain the financial security?
  13. I no longer actively sell or solicit legal service contracts, but I still receive commissions related to the sale of legal service contracts. Do I have to maintain my registration with the Department?
  14. How do I change information on my company registration?
  15. How do I get a duplicate or replacement copy of my registration?
  16. How old do I have to be to sell Legal Service Contracts?

1. Who is a “Legal Service Contract Company” or “Company”?

A company is defined as the person who is contractually obligated to the legal service contract purchaser under terms of the contract and who enters into a contract with a contracting attorney to provide or obtain legal services for a contract holder. The legal service contract company is required to register with TDLR.

2. How much does it cost to register as a legal service contract company?

The initial company registration fee is $500.

3. Can I pay my registration fee by check or by credit card?

TDLR does not accept personal checks for For-Profit Legal Service Contract initial registrations or renewal registrations. You may pay by cashier’s check or money order. You cannot use a credit card to pay for initial registrations, but you can use a credit card to pay for renewal registrations online.

4. For how long is a legal service contract company registration valid?

A company registration is valid for a one-year period from the date of issue.

5. Can I register online?

Initial registrations may not be submitted online at this time.

6. What are the requirements to register as a legal service contract company?

To obtain your initial company registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • The name and TDLR registration number of the administrator being used by the company, if applicable;
  • A copy of the legal service contracts that will be marketed, sold, offered for sale, administered, or issued in this state and any endorsements or attachments to the legal service contracts;
  • An audit report and the audited financial statements for the company’s most recent fiscal year;
  • A certified statement, made by an actuary, describing the company’s reserves, if any;
  • Proof of financial security; and
  • Initial registration fee.

The forms and instructions are located on the website under For-Profit Legal Service Contract Forms.

7. What are the financial security requirements for legal service contract companies?

A company must deposit and maintain a form of financial security with the Executive Director of TDLR to ensure the faithful performance of a company's obligations to its legal service contract holders. The financial security requirements are structured on a tier level which is determined by the amount of gross revenue generated from the sale of legal service contracts in Texas during the past year.

A company must submit proof of one of the following forms of financial security that meets the market value requirements of Texas Occupations Code, Section 953.101:

  • a surety bond issued by an authorized surety;
  • securities of the type eligible for deposit by an authorized insurer in Texas:
  • a deposit of cash or cash equivalents;
  • an irrevocable letter of credit issued by a qualified financial institution; or
  • another form of security acceptable to the Executive Director.

Any form of financial security listed above must be approved by the Department prior to use.

A company must also submit for TDLR review:

  • the audited financial statements of a company; and
  • a certified statement from an actuary describing the company's reserves, if any.

For additional information on the financial security requirements, see Occupations Code, Section 953.101, Financial Security Requirements; Section 953.105, Additional Financial Security Requirements; and Rule 57.21, Registration Requirements Company.

8. How do I obtain a surety bond?

You should contact an insurance company or a bonding company to obtain a surety bond. You can search the Texas Department of Insurance website or call 1-800-578-4677 (Texas only) or 512-463-6169 to find out if a specific insurance or bonding company is authorized to write bonds in Texas.

9. What are the requirements for using a surety bond?

A surety bond must:

  • be issued by a surety company authorized to do business in the state of Texas;
  • conform to the Texas Insurance Code;
  • be payable to the Executive Director for the satisfaction of eligible legal service contract holder claims; AND
  • state that the surety company will provide TDLR with written notice of its intent to cancel the bond no later than 60 days prior to the date of cancellation.

10. What are the requirements for using a certificate of deposit?

The bank or financial institution that issues the certificate of deposit (CD) must write a letter directly to the Executive Director (not to the company) stating:

  • the amount of the CD;
  • the account number;
  • the effective (start) date of the CD;
  • the maturity date of the CD;
  • the CD has been assigned to the Executive Director and may not be reassigned without written authorization from the Executive Director;
  • the CD is payable in whole or in part to the Executive Director upon request; and
  • the purpose of the CD is to ensure the legal service contract company’s compliance with the Texas For-Profit Legal Service Contract statutes and rules.

11. What are the requirements for using an original letter of credit?

An original letter of credit must be:

  • irrevocable;
  • issued by a qualified financial institution which is financially responsible in the amount of the letter of credit;
  • must not require examination of the performance of the underlying transaction between TDLR and the company;
  • payable to TDLR on demand or within a reasonably brief period of time after presentation of all required documents; AND
  • does not include any condition that makes payment to TDLR contingent upon the consent of or other action by the company or other party.

12. How long do I have to maintain the financial security?

The Executive Director of TDLR shall maintain a company's financial security deposit so long as the company continues to do business in this state. When a company ceases to do business in this state and furnishes the Executive Director with satisfactory proof that the company has discharged or otherwise adequately met all obligations to its legal service contract holders in this state, the Executive Director shall release the deposited financial security to the company.

13. I no longer actively sell or solicit legal service contracts, but I still receive commissions related to the sale of legal service contracts. Do I have to maintain my registration with the Department?

No, you do not have to register with the department unless you are actively selling or soliciting legal service contracts.

14. How do I change information on my company registration?

You can make the changes online or submit any changes in writing to the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711, within 30 days of the change.

15. How do I get a duplicate or replacement copy of my registration?

Send a cashier’s check or money order in the amount of $25 payable to TDLR with a written request for a duplicate registration to Texas Department of Licensing and Regulation, P.O. Box 12157, Austin TX 78711-2157.

16. How old do I have to be to sell Legal Service Contracts?

You must be at least 18 years old.


RENEWAL QUESTIONS - COMPANIES
  1. How often is a legal service contract company required to renew its registration?
  2. How much does it cost to renew my company registration?
  3. Can I pay my renewal registration fee by check or by credit card?
  4. What are the requirements to renew a company registration?
  5. Do I have to submit financial security documents upon renewal every year?
  6. My company registration has expired. What do I do to get it back?

1. How often is a legal service contract company required to renew its registration?

In order for a company to lawfully continue operating in Texas, a registration must be renewed annually. A company registration is valid for a period of one year from the date of issue.

2. How much does it cost to renew my company registration?

The renewal fees for companies are based on the number of legal service contracts a company sells during the twelve (12) months preceding the date of the application.

  • $500 for 0 - 1,000 legal service contracts;
  • $750 for 1,001 - 2,500 legal service contracts; and
  • $1,000 for 2,501 or more legal service contracts.

In addition to the annual registration fee, the company must pay a premium tax replacement fee.

For additional information regarding fees for companies, see Occupations Code Section 953.053, Fees and Rule 57.80, Fees.

3. Can I pay my renewal registration fee by check or by credit card?

You may pay by company check, cashier’s check or money order.

4. What are the requirements to renew a company registration?

To renew your company registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • The name and TDLR registration number of the administrator being used by the company, if applicable;
  • A copy of the legal service contracts that will be marketed, sold, offered for sale, administered, or issued in this state and any endorsements or attachments to the legal service contracts;
  • An audit report and the audited financial statements for the company’s most recent fiscal year;
  • A certified statement, made by an actuary, describing the company’s reserves, if any;
  • Proof of financial security; and
  • Renewal registration fee.

The forms and instructions are located on the website under For-Profit Legal Service Contract Forms.

5. Do I have to submit financial security documents upon renewal every year?

Yes, a company must submit new or updated financial security documents every year. The amount of financial security is based on the gross revenue generated from the sale of legal service contracts in Texas during the previous year.

6. My company registration has expired. How do I get it back?

Submit the following with your application and fee:

  • the name and TDLR registration number of the administrator being used by the company, if applicable;
  • a copy of the legal service contracts that will be marketed, sold, offered for sale, administered, or issued in this state and any endorsements or attachments to the legal service contracts;
  • an audit report and the audited financial statements for the company’s most recent fiscal year;
  • a certified statement, made by an actuary, describing the company’s reserves, if any; and
  • proof of financial security.

The renewal registration fee for a company whose registration has been expired for 90 days or less is:

  • $750 for 0-250 legal service contracts;
  • $1,125 for 251-499 legal service contracts; and
  • $1,500 for 500 or more legal service contracts.

The renewal registration fee for a company whose registration has been expired for more than 90 days but less than 18 months is:

  • $1,000 for 0-250 legal service contracts;
  • $1,500 for 251-499 legal service contracts; and
  • $2,000 for 500 or more legal service contracts.

If your registration has been expired for more than 18 months but less than three years, you may submit a “Request to Executive Director for Expired License Renewal” form with the required renewal fee.

If your registration has been expired for more than three years you may not renew your registration. You must apply for a new registration.

You may be subject to enforcement actions, including administrative penalties and sanctions, for operating with an expired registration (expired less than 18 months) or operating without a registration (expired 18 months or more).

If your renewal application is postmarked before your expiration date, it is considered a timely renewal.


LICENSING QUESTIONS – SALES REPRESENTATIVE
  1. Who is a “Legal Service Contract Sales Representative” or a “Sales Representative”?
  2. How much does it cost to register as a Sales Representative?
  3. Can I pay my registration fee by check or by credit card?
  4. For how long is a sales representative registration valid?
  5. Can I register online?
  6. What are the requirements to obtain a sales representative registration?
  7. Are legal service contract sales representatives required to submit financial security?
  8. How do I change information on my Sales Representative registration?
  9. How do I get a duplicate or replacement copy of my registration?
  10. I no longer actively sell or solicit legal service contracts, but I still receive commissions related to the sale of legal service contracts. Do I have to maintain my registration with the Department?
  11. How old do I have to be to sell Legal Service Contracts?
  12. How can I get a copy of my renewal form?

1. Who is a “Legal Service Contract Sales Representative” or a “Sales Representative”?

A sales representative is defined as a person who sells or solicits legal service contracts or group legal service contracts. A group legal service contract manager is not a sales representative. Legal Service Contract Sales Representatives are required to register with TDLR.

2. How much does it cost to register as a Sales Representative?

The initial registration fee is $20.

3. Can I pay my registration fee by check or by credit card?

TDLR does not accept personal checks for For-Profit Legal Service Contract initial registrations or renewal registrations. You may pay by cashier’s check or money order. You can use a credit card to pay for initial registrations when using the online application. You can use a credit card to pay for renewal registrations online.

4. For how long is a sales representative registration valid?

A sales representative registration is valid for a one-year period from the date of issue.

5. Can I register online?

Yes, you can register online for the initial registration.

6. What are the requirements to obtain a sales representative registration?

To obtain your initial sales representative registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • A completed criminal history questionnaire, if applicable;
  • A completed disciplinary action questionnaire, if applicable;
  • A list of the for-profit companies for which you will sell legal service contracts; and
  • Initial registration fee of $20.

The forms and instructions are located on the website under For-Profit Legal Service Contract Forms

7. Are legal service contract sales representatives required to submit financial security?

No, only legal service contract companies are required to submit financial security.

8. How do I change information on my Sales Representative registration?

You may submit changes online or in writing to the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711, within 30 days of the change.

9. How do I get a duplicate or replacement copy of my registration?

Send a cashier’s check or money order in the amount of $25 payable to TDLR with a written request for a duplicate registration to: Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711.

10. I no longer actively sell or solicit legal service contracts, but I still receive commissions related to the sale of legal service contracts. Do I have to maintain my registration with the Department?

No, you do not have to register with the department unless you are actively selling or soliciting legal service contracts.

11. How old do I have to be to sell Legal Service Contracts?

You must be at least 18 years old.

12. How can I get a copy of my renewal form?

You can get a printable copy of your renewal form at https://www.tdlr.texas.gov/App_Online/LogonForRenewalLetter.asp .


RENEWAL QUESTIONS – SALES REPRESENTATIVES
  1. How often is a Legal Service Contract Sales Representative required to renew its registration?
  2. How much does it cost to renew my sales representative registration?
  3. Can I pay my renewal registration fee by check or by credit card?
  4. Can I renew my registration online?
  5. What are the requirements to renew a sales representative registration?
  6. My sales representative registration has expired. What do I do to get it back?

1. How often is a Legal Service Contract Sales Representative required to renew its registration?

In order for a sales representative to lawfully continue operating in Texas, a registration must be renewed annually. A sales representative registration is valid for a period of one year from the date of issue.

2. How much does it cost to renew my sales representative registration?

The renewal registration fee is $20.

3. Can I pay my renewal registration fee by check or by credit card?

TDLR does not accept personal checks for For-Profit Legal Service Contract renewal registrations. You may pay by cashier’s check or money order. You can also use a credit card to pay for renewal registrations online.

4. Can I renew my registration online?

Yes, you can renew your registration online.

5. What are the requirements to renew a sales representative registration?

To renew your sales representative registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • A completed criminal history questionnaire, if applicable;
  • A completed disciplinary action questionnaire, if applicable;
  • A list of the for-profit companies for which you will sell legal service contracts; and
  • Renewal registration fee of $20.

The forms and instructions are located on the website under For-Profit Legal Service Contract Forms.

6. My sales representative registration has expired. How do I get it back?

You must submit a renewal application, all required attachments, and the appropriate late renewal fees:

  • 1 - 90 days after expiration: $10.
  • 91 days - 18 months after expiration: $40.

If your registration has been expired for more than 18 months but less than three years, you may submit a “Request to Executive Director for Expired License Renewal” form with the required renewal fee.

If your registration has been expired for more than three years you may not renew your registration. You must apply for a new registration.

You may be subject to enforcement actions, including administrative penalties and sanctions, for operating with an expired registration (expired less than 18 months) or operating without a registration (expired 18 months or more).

If your renewal application is postmarked before your expiration date, it is considered a timely renewal.


LICENSING QUESTIONS – ADMINISTRATORS
  1. Who is a “Legal Service Contract Administrator” or an “Administrator”?
  2. What functions may a Legal Service Contract Administrator perform?
  3. When does an administrator need to have a separate registration from the company?
  4. How much does it cost to register as an administrator?
  5. Can I pay my registration fee by check or by credit card?
  6. For how long is an administrator registration valid?
  7. Can I register online?
  8. What are the requirements to obtain an administrator registration?
  9. Are legal service contract administrators required to submit financial security?
  10. How do I change information on my administrator registration?
  11. How do I get a duplicate or replacement copy of my registration certificate?
  12. How old do I have to be to administer Legal Service Contracts?

1. Who is a “Legal Service Contract Administrator” or an “Administrator”?

An administrator is the person appointed by a legal service contract company to be responsible for the administration of a legal service contract. The term includes a person responsible for any filings required under the Act. Legal Service Contract Administrators are required to register with TDLR.

2. What functions may a Legal Service Contract Administrator perform?

An administrator may perform the following activities on behalf of a Legal Service Contract Company:

  • all or any part of the administration of legal service contracts or group legal service contracts;
  • the sale of legal service contracts or group legal service contracts; or
  • compliance with the Act and the rules.

3. When does an administrator need to have a separate registration from the company?

If the administrator is a separate legal entity from the Legal Service Contract Company, then the administrator needs a separate Legal Service Contract Administrator registration. If the Legal Service Contract Company is administering its own contracts, the company does not need a separate administrator registration.

4. How much does it cost to register as an administrator?

The initial registration fee is $50.

5. Can I pay my registration fee by check or by credit card?

TDLR does not accept personal checks for For-Profit Legal Service Contract initial registrations or renewal registrations. You may pay by cashier’s check or money order. You cannot use a credit card to pay for initial registrations, but you can use a credit card to pay for renewal registrations online.

6. For how long is an administrator registration valid?

An administrator registration is valid for a one-year period from the date of issue.

7. Can I register online?

Initial registrations may not be submitted online at this time.

8. What are the requirements to obtain an administrator registration?

To obtain your initial administrator registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • A completed criminal history questionnaire, as applicable;
  • A completed disciplinary action form, as applicable;
  • The name and registration number of the for-profit legal service contract company or companies for which you will act as an administrator; and
  • Initial registration fee of $50.

The forms are located on the website under For-Profit Legal Service Contract Forms.

9. Are legal service contract administrators required to submit financial security?

No, only legal service contract companies are required to submit financial security.

10. How do I change information on my administrator registration?

You may submit changes online or in writing to the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711, within 30 days of the change.

11. How do I get a duplicate or replacement copy of my registration certificate?

Send a cashier’s check or money order in the amount of $25 payable to TDLR with a written request for a duplicate registration to: Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, TX 78711.

12. How old do I have to be to administer Legal Service Contracts?

You must be at least 18 years old.


RENEWAL QUESTIONS - ADMINISTRATORS

  1. How often is a legal service contract administrator required to renew its registration?
  2. How much does it cost to renew a registration as an administrator?
  3. What are the requirements to renew an administrator registration?
  4. My administrator registration has expired. How do I get it back?

1. How often is a legal service contract administrator required to renew its registration?

In order for an administrator to lawfully continue operating in Texas, a registration must be renewed annually. An administrator registration is valid for a period of one year from the date of issue.

2. How much does it cost to renew a registration as an administrator?

The annual renewal registration fee is $50.

3. What are the requirements to renew an administrator registration?

To renew your administrator registration, you must provide TDLR with all of the following required information, using the most recent TDLR forms available:

  • A completed application form;
  • A completed criminal history questionnaire, as applicable;
  • A completed disciplinary action form, as applicable;
  • The name and registration number of the for-profit legal service contract company or companies for which you will act as an administrator; and
  • Renewal registration fee of $50.

The forms are located on the website under For-Profit Legal Service Contract Forms.

4. My administrator registration has expired. How do I get it back?

You must submit:

  • a completed criminal history questionnaire, as applicable;
  • a completed disciplinary action form, as applicable;
  • the name and registration number of the for-profit legal service contract company or companies for which you will act as an administrator and the appropriate fee.
  • 1 - 90 days late: $75.
  • 91 days - less than 18 months: $100.

If your registration has been expired for more than 18 months but less than three years, you may submit a “Request to Executive Director for Expired License Renewal” form with the required renewal fee.

If your registration has been expired for more than three years you may not renew your registration. You must apply for a new registration.

You may be subject to enforcement actions, including administrative penalties and sanctions, for operating with an expired registration (expired less than 18 months) or operating without a registration (expired 18 months or more).

If your renewal application is postmarked before your expiration date, it is considered a timely renewal.


COMPLIANCE QUESTIONS
  1. I am a legal service contract company. Do I have to get approval from TDLR before I sell my legal service contracts?
  2. Are there any required disclosures or information that must be included in the legal service contracts?
  3. What records must a legal service contract company keep, and how long does the company have to keep them?

1. I am a legal service contract company. Do I have to get approval from TDLR before I sell my legal service contracts?

A legal service contract must be filed with TDLR before it is marketed, sold, offered for sale, administered, or issued in this state. Any subsequent endorsement or attachment to the contract must also be filed with TDLR before the endorsement or attachment is delivered to legal service contract holders.

2. Are there any required disclosures or information that must be included in the legal service contracts?

Yes. Lists of requirements regarding the format and contents of a legal service contract are found under Occupations Code Section 953.156(b) and Rule 57.71(e).

3. What records must a legal service contract company keep, and how long does the company have to keep them?

A list of the records that a company must maintain is located under Occupations Code Section 953.155. The records may be kept electronically. The company must retain the records for at least two years after the termination date of the specified period of coverage under the legal service contract.

A company that discontinues business in this state shall retain its records until the company furnishes the Executive Director of TDLR with proof satisfactory to the Executive Director that the company has discharged all obligations to legal service contract holders in this state.


CONSUMER PROTECTION QUESTIONS
  1. How can I find out if a Legal Service Contract company, sales representative or administrator is registered?
  2. How do I get a list of registered Legal Service Contract companies, sales representatives or administrators?
  3. I bought a legal service contract, but I have changed my mind. Can I cancel it?
  4. If I cancel my legal service contract, can I get a refund?
  5. I bought a legal service contract. When should I expect to get a copy of the contract?

1. How can I find out if a Legal Service Contract company, sales representative or administrator is registered?

You may search the Licensing Database on the TDLR website. You can also call TDLR at 1-800-803-9202 (Texas only) or 512-463-6599, and speak with a customer service representative.

2. How do I get a list of registered Legal Service Contract companies, sales representatives or administrators?

To get a list of all registered LSC companies and sales representatives, you may search the Licensing Database on the TDLR website. You may click on “Download License files” near the top of the page or select “Legal Service Contract Company” or “Legal Service Contract Sales Rep” as the license type under “Inquire by License Type.”

3. I bought a legal service contract, but I have changed my mind. Can I cancel it?

You may cancel the legal service contract if you provide the company with written notice of your cancellation not later than 7 days after the date you receive the contract. You may be able to cancel the legal service contract at a later time as provided by the contract.

If you cancel a legal service contract, TDLR recommends that you send the written cancellation notice by certified mail, return receipt requested, or by fax. Please keep the certified mail receipt or the fax delivery page and any documentation that verifies that the company received the cancellation request.

4. If I cancel my legal service contract, can I get a refund?

If you cancel the contract in writing within 7 days after receiving the contract and you have not sought legal services under the contract before cancelling it, the contract is void. You may be allowed to void the legal service contract at a later time as provided by the contract.

If a legal service contract is voided, the company shall refund to you or credit your account the full purchase price of the contract. If the company does not pay the refund or credit your account before the 46th day after the date the contract is voided, the company is liable to you for a penalty each month an amount remains outstanding. The monthly penalty may not exceed 10 percent of the amount outstanding.

5. I bought a legal service contract. When should I expect to get a copy of the contract?

A company must provide a receipt for or other written evidence of the purchase of a legal service contract to you within 45 days, and a company must provide a copy of the legal service contract to you within 45 days. Some companies will provide you with a copy of the contract and a receipt at the time of purchase.


ENFORCEMENT QUESTIONS
  1. How do I file a complaint against a Legal Service Contract company, sales representative or administrator?
  2. How do I find out if a Legal Services Contract company, sales representative or administrator has been assessed penalties or sanctions for violating the Act or the rules?
  3. What are the administrative penalties or sanctions for violating the Act or the rules?

1. How do I file a complaint against a Legal Service Contract company, sales representative or administrator?

To file a complaint, you may:

If you are a consumer and have a complaint about your legal service contract, TDLR suggests contacting the legal service contract company first to find out if your complaint can be resolved. If you are unable to resolve the complaint with the company, you may file a complaint with TDLR by any of the methods stated above.

2. How do I find out if a Legal Services Contract company, sales representative or administrator has been assessed penalties or sanctions for violating the Act or the rules?

To get a list of final enforcement actions against all Legal Service Contract entities, you may search the Administrative Orders on the TDLR website. Select “For-Profit Legal Service Contracts” as the license type.

3. What are the administrative penalties or sanctions for violating the Act or the rules?

The list of violations and the administrative penalties and sanctions for each violation is posted on the TDLR website.


HOW TO STAY INFORMED ABOUT PROGRAM CHANGES
  1. How may I receive notification of new and changing information with your department?
  2. Who do I contact if I have questions regarding the regulation of for-profit legal service contracts in Texas?

1. How may I receive notification of new and changing information with your department?

You may sign up on the TDLR E-mail Subscriber Notification Lists on our website. These lists were established to allow subscribers to receive automated notification of new and changing information.

2. Who do I contact if I have questions regarding the regulation of for-profit legal service contracts in Texas?

Questions may be directed to TDLR at CS.Legal.Service.Contracts@tdlr.texas.gov.