Tex.
Ins. Code Section 981.203
Qualifications for Surplus Lines License
(a)
The department may issue a surplus lines license to an applicant who the department determines complies with Subsection (b) and is:(1)
an individual who:(A)
has passed an examination under Chapter 4002 (Examination of License Applicants) and department rules; and(B)
holds a current license as:(i)
a general property and casualty agent authorized under Subchapter B (License Required), Chapter 4051 (Property and Casualty Agents); or(ii)
a managing general agent; or(2)
a corporation, limited liability company, or partnership that:(A)
has at least one officer or director or at least one active partner who has passed the required surplus lines license examination;(B)
holds a current license as:(i)
a general property and casualty agent authorized under Subchapter B (License Required), Chapter 4051 (Property and Casualty Agents); or(ii)
a managing general agent; and(C)
conducts insurance activities under this chapter only through an individual licensed under this section.(a-1)
Notwithstanding Subsection (a)(1)(B), an individual is not required to obtain a general property and casualty agent license to hold a surplus lines agent license if:(1)
the home state of each insured is Texas;(2)
the individual is a nonresident of this state;(3)
the individual is licensed as a surplus lines agent in the individual’s state of residence;(4)
the individual is not required by the individual’s state of residence to hold a general property and casualty agent license to become licensed as a surplus lines agent;(5)
the individual has provided information acceptable to the commissioner that the individual’s state of residence does not require a general property and casualty agent license for a surplus lines agent license;(6)
the individual’s state of residence does not require a surplus lines agent to search for the availability of insurance in the individual’s state of residence before the insurance is placed through a surplus lines agent;(7)
the individual’s state of residence allows a licensed general property and casualty agent to search for the availability of insurance in the individual’s state of residence;(8)
the individual has a professional relationship with, and each transaction is conducted through, a person who:(A)
is a licensed general property and casualty agent in this state or in the state of each transaction; and(B)
searches for the availability of insurance in this state before the insurance is placed through a surplus lines agent; and(9)
each transaction complies with the laws of the state in which it occurs.(b)
The agent must:(1)
pay an application fee as determined by the department; and(2)
submit a properly completed license application.
Source:
Section 981.203 — Qualifications for Surplus Lines License, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.981.htm#981.203 (accessed Apr. 20, 2024).
