Section 19.1403 - Requirements for Bond or Errors and Omissions PolicyAny reinsurance intermediary must file and maintain a bond with the commissioner for the protection of all insurers represented or file and maintain an errors and omissions policy, meeting the following criteria.
(1) The bond must be executed by the reinsurance intermediary as principal and by a surety company authorized to do business in this state, as surety, or surplus lines insurer eligible in this state, in the principal sum of $100,000 for a broker and in the principal sum of $250,000 for a manager, payable to the Texas Department of Insurance for the use and benefit of all insurers represented. The bond must provide that a copy of any cancellation or nonrenewal notice must be mailed to Agent and Adjuster Licensing Office, Texas Department of Insurance, MC: CO-AAL, P.O. Box 12030, Austin, Texas 78711-2030. The executed bond must be furnished to the Texas Department of Insurance.(2) The errors and omissions policy must be in a form acceptable to the Texas Department of Insurance, and must be filed with Agent and Adjuster Licensing Office at the address listed in paragraph (1) of this section. The policy must provide that the Texas Department of Insurance will be a certificate holder and will receive a copy of any cancellation or nonrenewal notice, which must be mailed to the deputy commissioner for licensing at the address listed in paragraph (1) of this section. The errors and omissions policy must cover all negligent acts or omissions of the reinsurance intermediary and any person acting on its behalf and must provide coverage of at least $100,000 for each occurrence for brokers and must provide coverage of at least $250,000 for each occurrence for managers.(3) The commissioner may determine that special circumstances require an additional amount of coverage for the bond or policy.28 Tex. Admin. Code § 19.1403
The provisions of this §19.1403 adopted to be effective April 13, 1992, 17 TexReg 2276; Amended by Texas Register, Volume 48, Number 24, June 16, 2023, TexReg 3293, eff. 6/19/2023