The Texas Department of Insurance requires the Texas Surplus Lines Agents Bond.
Surplus lines agents “fill the need for coverage in the marketplace by insuring those risks that are declined by the standard underwriting and pricing processes of admitted insurance carriers.” In the State of Texas, Surplus Line Agents are required to post a surety bond as a part of the licensing process. The bond they must post is the Texas Surplus Lines Agents Bond. The Texas Surplus Lines Agents Bond must in the amount of $50,000. he cost of this bond with Surety1 starts at $500 for the year.
The bond states that the bond holder will discharge his or her legal liability to the Texas Department of Insurance. He or she will do this in respects to collection and payment of gross premium taxes. He or she will discharge legal liability to insureds as respects the payment of any final judgement which will impose liability in response to a transaction. This will happen with insureds under a policy of surplus lines insurance under Texas Insurance Code and the rules of the Texas Department of Insurance relating to surplus lines insurance.