The State of Texas Department of Insurance requires the Texas Reinsurance Intermediary Bond.
The Texas Reinsurance Intermediary Bond is required to be in the amount of $100,000 for a Reinsurance Intermediary Broker or $250,000 for a Reinsurance Intermediary Manager. The cost of this bond starts at 1% of the bond amount.
The Texas Reinsurance Intermediary Bond is an essential part of the application for the Reinsurance Intermediary License. The Department of Insurance requires this bond to be on file. Without it, the Department will not grant a license under any condition.
The bond states that the bond holder will discharge losses that result from any final judgment recovered against the Reinsurance Intermediary by a customer. In helps ensure that the licensee will follow the Texas Administrative Code and any and all regulations that pertain. Surety bonds are a form of consumer protection, so this bond protects the public from financial harm on behalf of the licensee.