Texas Surplus Lines Bond Repealed

In 2005, Texas legislators passed Senate Bill 1564. This law repealed Section 981.206 of the Insurance Code, eliminating the requirement that a surplus lines agent provide proof of financial responsibility to the Texas Department of Insurance. Agents typically met this requirement through a $50,000 surety bond. Effective January 1, 2006 agents are no longer required to carry that surplus lines bond. Questions regarding the surplus lines agent bond should be directed to the Texas Department of Insurance, Agent License Division (512) 322-3503. Please make the following changes regarding this repeal to your Procedures Manual.

Remove:
Section 4
Chapter 981, TIC
Pages 1-19
Revised September 2003

Add:
Section 4
Chapter 981, TIC
Pages 1-19
Revised January 2006