TCPA Update: Texting Rules for Insurance Agencies

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TCPA & Text Messaging: A Wake-Up Call for Insurance Agencies

Insurance agencies and brokers increasingly rely on SMS communication for reminders, lead follow-ups, and renewals. However, a recent federal court ruling has renewed focus on TCPA text message compliance for insurance agencies, confirming that text messages may fall under the Telephone Consumer Protection Act (TCPA) and its Do Not Call (DNC) rules.

The case, Wilson v. Medvidi, Inc., highlights the growing legal scrutiny around how agencies use text messaging for marketing and client outreach.

What Happened in Wilson v. Medvidi, Inc.

In the case, a consumer sued a healthcare company after receiving marketing texts despite being listed on the National Do Not Call Registry. The defendant argued that the TCPA’s DNC section—47 U.S.C. § 227(c)—only covers “telephone calls,” not text messages.

The U.S. District Court for the Northern District of California disagreed.

According to the opinion (Justia, Oct 2025), the court found “nothing in the text, structure, or purpose” of the TCPA that excludes text messages from its DNC protections. It ruled that SMS communications can qualify as “telephone solicitations” and therefore may trigger DNC liability if sent without proper consent.

Although the court dismissed the initial complaint due to insufficient factual detail, it granted the plaintiff leave to amend, signaling that the legal claim itself is valid—just not yet properly pleaded.

Why This Matters for Insurance Agencies and Brokers

This isn’t an isolated decision. As TCPAWorld reports, several courts now hold that text messages fall within the scope of the TCPA’s DNC rules—while others have ruled the opposite. The result? A growing patchwork of interpretations that complicate national marketing and client outreach strategies.

For agencies, this means you can no longer assume your text campaigns are automatically “safe” just because they’re not phone calls. If your outreach includes promotional, referral, or marketing texts, they could expose your business to TCPA claims if sent to numbers on the National DNC list or without clear consent.

Practical Steps for Agencies Using SMS

To reduce risk and stay compliant while maintaining effective client communication, agencies should take the following precautions:

1. Audit Your SMS Practices

  • Identify which texts are marketing-related vs. transactional/informational (e.g., appointment reminders or policy updates).

  • Apply stricter consent and opt-out standards to marketing messages.

2. Honor the National DNC List

  • Scrub your lists against the National Do Not Call Registry before sending any promotional messages.

  • Document all consent and opt-out activity.

3. Implement Clear Opt-Out Options

  • Every text message should include a simple way for recipients to stop messages (e.g., “Reply STOP to unsubscribe”).

  • Ensure your CRM or SMS platform automatically honors STOP requests immediately.

4. Review Vendor & Marketing Partnerships

  • If third-party vendors send texts on your behalf, confirm they follow TCPA and DNC rules.

  • Maintain written agreements that clearly assign compliance responsibility.

5. Keep Proof of Consent

  • Record timestamps, IP addresses, and sign-up methods for all SMS opt-ins.

  • Store these consent logs in your CRM (like TLDCRM) for audit protection.

6. Stay Informed

  • The legal landscape is shifting. Courts in different states are reaching different conclusions.

  • Follow TCPA case updates or partner with a compliance expert to monitor new rulings.

The Bigger Picture: Texting Remains Powerful—If Done Right

Texting remains one of the most effective ways to reach clients, with open rates exceeding 90%. The key is responsible execution.
By combining clear consent, proper data hygiene, and compliance tools, agencies can continue to use SMS effectively while avoiding regulatory risk.

TLDCRM Can Help You Stay Compliant

At TLD, we understand how critical communication is during OEP and beyond. That’s why our CRM helps agencies maintain accurate records, consent tracking, and opt-out automation—making TCPA and DNC compliance easier to manage.

Our team will continue monitoring new TCPA developments and court decisions that affect the insurance industry.

If you have questions about how to align your communication strategy with TCPA requirements, our support team is here to help.

Contact us via Slack or at [email protected] for assistance or guidance.