Texas § OC.1102.1141 - FINANCIAL RESPONSIBILITY REQUIREMENT

§ OC.1102.1141. FINANCIAL RESPONSIBILITY REQUIREMENT

FINANCIAL RESPONSIBILITY REQUIREMENT. (a) An inspector must maintain financial responsibility in the form of: (1) a liability insurance policy with a minimum limit of $100,000 per occurrence and an aggregate annual total of at least $100,000, and that: (A) is written by an insurer authorized to engage in the business of insurance in this state, a risk retention group as defined by Chapter 2201 , Insurance Code, or an eligible surplus lines insurer, as defined by Section 981.002 , Insurance Code; and (B) specifically provides for professional liability coverage to protect the public against a violation of Subchapter G; or (2) a bond or other security accepted by the commission. (b) A bond posted as security under Subsection (a)(2) must: (1) be issued by a carrier admitted in this state; (2) be in an amount not less than $100,000; (3) be continuous; and (4) be cancellable by the surety only after the surety has provided at least 90 days' written notice to the commission before the effective date of the cancellation. (c) Any security provided under this section in a form other than a bond must be convertible to cash by the commission for the benefit of a person who contracts with an inspector in this state, without requiring approval of a court, if the commission determines that the inspector has violated Subchapter G. Any amount remaining after an inspector's license has expired shall be returned to the inspector not later than the 180th day after the date the license expires. (d) An inspector who posts a bond or other security under this section must designate an unaffiliated third party to handle the processing of any claim regarding the bond or other security. Added by Acts 2013, 83rd Leg., R.S., Ch. 698 (H.B. 2911 ), Sec. 6, eff. September 1, 2013.