TDI Adopts Updated Surplus Lines Rules for Military Spouses

The Texas Department of Insurance (TDI) has adopted new rules for surplus lines agents in Texas who are military spouses, effective February 6, 2020. As part of the adoption, a new section has been added to Title 28, Section 15.101 of the Texas Administrative Code (TAC), which relates to licensing of surplus lines agents.

The addition states that military spouses who are licensed in a state with substantially equivalent requirements to those in Texas are eligible for a surplus lines license while the military service member is stationed at a military installation in Texas. The military spouse must submit an application to TDI, submit proof of residency in Texas and a copy of the spouse’s military identification card, and show evidence of good standing from the jurisdiction with substantially equivalent requirements. Once confirmed, the license is effective for three years.

Senate Bill 1200, which was passed by the Texas Legislature during the 2019 legislative session, amends state code to address the authority of military spouses to engage in business or occupation in the state of Texas. As a result, sections of the TAC must be revised to implement the legislation. In addition to surplus lines rules, TDI has amended portions of the code regarding corporate and financial regulation, licensing and regulation of insurance professionals, insurance premium finance, and state fire marshal.

These rules were first proposed in October 2019. The proposed and adopted sections can be found in their entirety on the TDI website.