By:  Janek                                                        S.B. No. 1564
	(In the Senate - Filed March 11, 2005; March 22, 2005, read 
first time and referred to Committee on Business and Commerce; 
May 2, 2005, reported favorably by the following vote:  Yeas 9, 
Nays 0; May 2, 2005, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the requirement for a surety bond or other proof of financial responsibility for licensure of surplus lines insurance agents. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 981.203, Insurance Code, is amended to read as follows: Sec. 981.203. QUALIFICATIONS FOR SURPLUS LINES LICENSE. (a) The department may issue a surplus lines license to an applicant who the department determines complies with Subsection (b) and is: (1) an individual who: (A) has passed an examination under Article 21.01-1 and department rules; and (B) holds a current license as: (i) a general property and casualty agent authorized under Article 21.14; or (ii) a managing general agent; or (2) a corporation, limited liability company, or partnership that: (A) has at least one officer or director or at least one active partner who has passed the required surplus lines license examination; (B) holds a current license as: (i) a general property and casualty agent authorized under Article 21.14; or (ii) a managing general agent; and (C) conducts insurance activities under this chapter only through an individual licensed under this section. (b) The agent must: (1) pay an application fee as determined by the department; and (2) submit a properly completed license application[; and [(3) provide proof of financial responsibility under Section 981.206]. SECTION 2. Section 981.206, Insurance Code, is repealed. SECTION 3. This Act takes effect January 1, 2006.
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