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.
Qualifying and the Premium
Qualifying for either the $100,000 or $250,000 Texas reinsurance intermediary bond involves completion of an application — which we’ll begin with you when you call us — and a review by an underwriter. Before submission of an application, we’ll need you to complete the application and sign it.
The application review includes a credit inquiry. To qualify through our agency good credit will be required and the approval is 1%, $1000 or $2500 of the bond amount required.
Once approval is granted and the premium is paid, our agency issues your surety bond to you. Thereafter, your surety bond, along with a Power of Attorney (POA) form are mailed to you. Upon receipt, you’ll sign your bond as Principal, filing it along with the POA to:
Texas Department of Insurance
PO Box 149104
Austin, TX 78714
Premium Prepayment Options
The premium associated with this bond is active for one year. Our agency also offers you the option, at your discretion, to prepay your surety bond up to 3 years. Prepayment of the premium saves you over annual renewals, besides lengthening the time between renewals.
The premium prepayment option and savings are as follows:
—$100,000 Surety Bond—
- If prepaid for 2 years, the premium is $1800, a $200 savings;
- If prepaid for 3 years, the premium is $2600, a $400 savings.
—$250,000 Surety Bond—
- If prepaid for 2 years, the premium is $4500, a $500 savings;
- If prepaid for 3 years, the premium is $6500, a $1000 savings.
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.
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. We are also a provider of surety bonds nationwide.
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