Texas Reinsurance Intermediary Bond |
AmeriPro Surety Bonds | 844-589-9732
Reinsurance is the process whereby insurance companies share risk with other insurance companies by purchasing policies which would limit any one insurance company’s financial exposure in case of loss.
Texas Reinsurance Brokers
Texas reinsurance brokers are governed by Chapter 4152 of the Texas Insurance Code.
Reinsurance brokers are overseen by the Texas Department of Insurance.
The Department of Insurance is also the obligee for the reinsurance bond.
That is, the Department requires a reinsurance broker or manager to post a bond in the appropriate amount; or, in lieu of a bond, errors and omissions insurance, as a prerequisite for licensing.
Texas Reinsurance Intermediary Bond: Amount
The Texas reinsurance intermediary bond is in one of two amounts:
- An applicant who is a reinsurance broker will need to post a $100,000 surety bond;
- An applicant who is a manager of reinsurance brokers will need to post a $250,000 Texas reinsurance intermediary bond.
Texas Reinsurance Intermediary Bond: Purpose
The Texas reinsurance intermediary bond protects is issued to the Department and protects others from wrongful, illegal, or fraudulent acts committed by a reinsurance broker in the course of their duties.
Of note is that this bond protects others from harmful acts committed by a reinsurance broker.
Texas Reinsurance Intermediary Bond: Premium
The amount a reinsurance broker applicant will pay for the surety bond will be dependent on the bond amount required and the applicant’s credit score.
Applicants with good credit may pay as low as 1% for either of the two bonds.
Applicants with poorer credit history may be required to pay more; however, AmeriPro Surety Bonds is confident that we are able to get any applicant bonded.
In cases where premiums may be unusually high, an applicant may qualify for premium financing which allows for a large down payment, and then additional payments over several months.
Becoming a Reinsurance Broker in Texas
Applicants interested in a Texas reinsurance broker license will need to do the following:
- Complete the application for a reinsurance broker license;
- Pay the appropriate application fee (the fee is nonrefundable);
- Provide the appropriate fingerprinting as required;
- Provide the department with the right surety bond amount.
AmeriPro Surety Bonds
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout Texas — nationwide.
We are here to help you get the bond that you need at the best price.