Texas § IN.981.203 - QUALIFICATIONS FOR SURPLUS LINES LICENSE

§ IN.981.203. QUALIFICATIONS FOR SURPLUS LINES LICENSE

QUALIFICATIONS FOR SURPLUS LINES LICENSE. (a) The department may issue a surplus lines license to an applicant who the department determines complies with Subsection (b) and is: (1) an individual who: (A) has passed an examination under Chapter 4002 and department rules; and (B) holds a current license as: (i) a general property and casualty agent authorized under Subchapter B , Chapter 4051 ; or (ii) a managing general agent; or (2) a corporation, limited liability company, or partnership that: (A) has at least one officer or director or at least one active partner who has passed the required surplus lines license examination; (B) holds a current license as: (i) a general property and casualty agent authorized under Subchapter B , Chapter 4051 ; or (ii) a managing general agent; and (C) conducts insurance activities under this chapter only through an individual licensed under this section. (a-1) Notwithstanding Subsection (a)(1)(B), an individual is not required to obtain a general property and casualty agent license to hold a surplus lines agent license if: (1) the home state of each insured is Texas; (2) the individual is a nonresident of this state; (3) the individual is licensed as a surplus lines agent in the individual's state of residence; (4) the individual is not required by the individual's state of residence to hold a general property and casualty agent license to become licensed as a surplus lines agent; (5) the individual has provided information acceptable to the commissioner that the individual's state of residence does not require a general property and casualty agent license for a surplus lines agent license; (6) the individual's state of residence does not require a surplus lines agent to search for the availability of insurance in the individual's state of residence before the insurance is placed through a surplus lines agent; (7) the individual's state of residence allows a licensed general property and casualty agent to search for the availability of insurance in the individual's state of residence; (8) the individual has a professional relationship with, and each transaction is conducted through, a person who: (A) is a licensed general property and casualty agent in this state or in the state of each transaction; and (B) searches for the availability of insurance in this state before the insurance is placed through a surplus lines agent; and (9) each transaction complies with the laws of the state in which it occurs. (b) The agent must: (1) pay an application fee as determined by the department; and (2) submit a properly completed license application. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.229(a), eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 402 (S.B. 1564 ), Sec. 1, eff. January 1, 2006. Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263 ), Sec. 2.09, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 2E.132, eff. April 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969 ), Sec. 14.012, eff. September 1, 2009. Acts 2013, 83rd Leg., R.S., Ch. 562 (S.B. 697 ), Sec. 1, eff. January 1, 2014.