Each licensed surplus lines agent as a condition precedent for being licensed and as a condition for continuing his/her license in force shall offer proof of financial solvency and demonstrate financial responsibility by filing with the department a surety bond in the amount of not less than $50,000 on a form specified by the department. The surety on the bond may be an eligible surplus lines insurer that is acceptable to the Commissioner of Insurance. The surety bond shall remain a condition for the surplus lines agent's license. The surety bond must provide that no less than 30 days written notice of bond termination will be given to the licensee and filed with the department. A binding commitment on the part of the surety to issue a bond pursuant to this section within a period of not more than 30 days shall be sufficient in connection with any application for a license. The Commissioner of Insurance may waive the amount, in part or in whole, of the bond required as necessary to comply with federal law.

Source Note:The provisions of this §15.4 adopted to be effective December 12, 2000, 25 TexReg 12179.