1. (a) A local mutual aid association's officer responsible for the funds of the association shall file with the department a surety bond.

2. (b) The surety bond must be:

   1. (1) executed by a surety company authorized to do business in this state;
   2. (2) satisfactory to the department; and
   3. (3) payable in an amount and conditioned as specified by Section 887.054.

3. (c) This section does not apply to a local mutual aid association that:

   1. (1) has a total membership of 1,000 or fewer members;
   2. (2) charges $1 or less each for annual dues or assessments; and
   3. (3) charges $2.50 or less for a membership fee.
4. (d) An association exempted under Subsection (c) shall file with the department a bond in the amount of $1,000 and conditioned as provided by Section 887.054.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.