Texas Surplus Lines Agent Bond | AmeriPro Surety Bonds | 844-589-9732
Surplus Line Agents in Texas
Texas surplus line agents, or brokers are regulated by the Texas Department of Insurance.
As a condition of licensing, a surplus lines broker must also have on file with the Department a $50,000 surety bond.
A surplus lines agent:
- Must have their own $50,000 surety bond;
- Work for a surplus lines agency or brokerage which has met the surety bond requirement, in which case the agent operates under that bond and they are not required to obtain their own.
Texas Surplus Lines Agent Bond: Required By Statute
TAC §§15.3-15.5 which deals with the regulation of surplus lines insurance in Texas, states that a surplus lines agent must provide “financial security” to the Department in the form of the bond required.
Texas Surplus Lines Agent Bond: Purpose
The purpose of the surplus lines agent bond is to protect consumers from any acts of fraud, theft, or criminal harm committed by a licensed surplus lines agent or agency, and any employees, in the responsibilities related to their duties.
The bond as as insurance policy of sorts, but only on behalf of the consumers, not the surplus lines broker.
Texas Surplus Lines Agent Bond Bond: Premium
The Texas surplus lines agent bond is a $50,000 surety bond. Qualifying is by means of an application; the bond is instant issue. There is no credit check involved.
Additionally, the premium may, at your discretion, be prepaid for 2 or 3 years, thereby offering a savings over a year to year renewal of the bond cost.
Payment options are as follows:
- 1 year, for $500;
- Prepaid 2 years for $900;
- Prepaid 3 years for $1300.
Duration of the Texas Surplus Lines Agent Bond
The bond is active for one year after its date of issuance and renews on an annual basis, if purchased as a one year bond. The premium payment options discussed above are still applicable
After The Purchase of the Surplus Lines Agent Bond
After purchasing the surplus lines agent bond, you will want to have the bond filed with the Department of Insurance at the address they provide.
Becoming a Texas Surplus Lines Agent:
To become a licensed surplus lines agent in Texas, you must:
- Pay the $48 exam fee and complete an exam. You can read more about the Texas surplus lines license as well;
- Get fingerprinted;
- Complete the application for an individual agent license and pay the $50 application fee;
Applicants may also want to be familiar with the pointers on how to correctly complete the application.
AmeriPro Surety Bonds
AmeriPro Surety Bonds provides the Texas surplus lines agent bond and all surety bonds related to licensing, court, and contractor bonds throughout Texas.
AmeriPro Surety Bonds also provides surety bonds nationwide.