1. (a) As set forth in this section and unless waived by the commissioner, each licensed surplus lines agent as a condition precedent for being licensed and as a condition for continuing the 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. The surety bond shall remain a condition for the surplus lines agent's license. The surety bond must provide that the surety will give no less than 30 days written notice of bond termination to the licensee and 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 may waive the requirement, in part or in whole, as necessary to comply with federal law to promote licensing uniformity and reciprocity among the states.

2. (b) Individuals licensed as surplus lines agents may demonstrate proof of financial responsibility by either:

   1. (1) obtaining a separate bond; or
   2. (2) relying on the bond of the surplus lines agency that employs the agent.
3. (c) Entities licensed as surplus lines agencies must obtain a separate bond and may not rely on the bond of any other individual or agency to demonstrate proof of financial responsibility.
4. (d) Without regard to whether or not the financial responsibility bond has been waived, within 30 days after the effective date of this section, and thereafter within 30 days of employment, each licensed surplus lines agency, both resident and nonresident, shall notify the department of the name and Texas surplus lines agent license number of each individual agent employed by the agency.

5. (e) Within 30 days after an individual surplus lines agent ceases to be employed by a licensed surplus lines agency for any reason:

   1. (1) the licensed surplus lines agency, whether resident or nonresident, shall notify the department that the individual is no longer employed by that agency; and
   2. (2) the individual agent shall demonstrate proof of financial responsibility to the department as specified in subsection (b) of this section.

Source Note:The provisions of this §15.4 adopted to be effective December 12, 2000, 25 TexReg 12179; amended to be effective October 21, 2002, 27 TexReg 9773.