Sole proprietorship business entities are not accepted electronically at this time and will need to submit a paper application to the Texas Department of Insurance.
Surplus lines applicants must hold an active general lines agency agent property and casualty or managing general agency license in Texas.
The variable line is included in the life, accident, health and health maintenance organization line of authority (LOA) or the life LOA license, defined as the following two (2) license classes: general lines agency with the LOA life, accident, health and health maintenance organization or the life agency with the LOA of life. When holding either of these two (2) license classes as they are defined above applicant may be appointed with a company that offers variable annuities or variable life.
The general lines agency with the LOA property and casualty includes the personal lines property and casualty agency with the LOA of Personal Lines property and casualty.
The general lines agency with the LOA life, accident, health and health maintenance organization includes the life agency with the LOA of life.
Applicant must have an active equivalent license for the requested LOA(s) in their resident state.
Most business entities are required to register to do business in this state prior to obtaining an insurance license.
Applications will not be reviewed by the state until additional required information is forwarded to the state including:
- Proof of Certificate of Authority
- Additional information for each responsible party listed
- Additional information for each individual owner, officer, director and partner
- Proof of compliance with franchise tax requirement (if applicable)
- Documentation pertaining to background questions with a "yes" response
At least one (1) Designated Licensed Responsible Producer (DRLP) must be provided on the application and must hold an active resident or non-resident license in Texas.
DRLPs specified on the application must also be specified as owners, partners, officers or directors. Identify all executive officers, directors, or partners who administer the applicant entity's insurance operations in Texas and all individuals and entities in control of ten percent (10%) or more of the agency's voting stock. Provide the SSN, date of birth and mailing address of each individual listed. The fingerprint requirement is waived if the applicant entity holds an active resident entity license that is similar to the license requested on this application. If the fingerprint requirement is not waived, the FAST Fingerprint Card Scan Authorization Form may be obtained from the state website.
If the applicant entity is owned, in whole or in part, by another entity, provide an attachment which discloses all entity and individual control relationships affecting the entity up to the ultimate controlling individual or entity. This disclosure may be in the form of an organization chart naming the entities and individuals and showing their relationship to the applicant entity.
At least one (1) officer or one active partner of the applicant entity must be individually licensed by the Texas Department of Insurance (TDI) to act as an agent under the applicant entity. Please provide the officer(s) or partner(s) TDI license number.
Unless otherwise stated below, the DRLPs must cumulatively cover the LOAs on the business application.
Business entities applying for life agency/agent/life LOA must submit at least one (1) DRLP that holds active Texas life or general lines agency/agent accident, health, health maintenance organization LOA.
Business entities applying for personal lines property and casualty agency/agent/personal lines LOA, must submit at least one (1) DRLP that holds active Texas personal lines property and casualty agency/agent or general lines agency/agent property and casualty.
All resident and non-resident corporations, limited liability companies, limited partnerships, limited liability partnerships, and agricultural cooperatives must provide a copy of their Charter, Certificate of Formation, or registration that was obtained from the Texas Secretary of State's office or other state's authorizing department (if non-resident entity). If the applicant entity was organized in a state other than Texas, then provide a copy of documentation that demonstrates the entity was organized under the laws of another state.
Resident and non-resident entities may be required to register with the Texas Secretary of State. Contact the Texas Secretary of State's office through the state website.
All banks and farm credit administration entities must provide a copy of the document issued by a federal or Texas state agency authorizing the entity to do business in Texas.
Attach a copy of the Articles of Incorporation or Articles of Organization or Articles of Association with all amendments that has been certified by the authorizing jurisdiction of the resident state or a copy of the Partnership Agreement with all addenda. If there is no partnership agreement, a letter signed by all partners stating there is no partnership agreement and that the partnership intends to act as an insurance agency. TDI must determine that the entity is authorized to engage in the business of insurance as an agent or generally authorized to engage in any lawful business under a general business purpose clause.
Applicant that is not licensed in their resident state for similar license type must attach proof of financial responsibility by one of the following methods:
- Errors and Omissions Policy - A Certificate of Insurance or a copy of a current Errors and Omissions (E & O) policy. The policy must insure the applicant in at least the amount of $250,000 with a deductible of not more than 10 percent of the full amount of the policy.
- Bond - A surety bond in the principal sum of $25,000 payable to the Texas Department of Insurance. (Bond forms may be obtained from the Texas Department of Insurance (TDI).
- Proof of financial responsibility is not required of business entity applicants holding a current license in their resident state. TDI will verify active resident license status in the National Insurance Producer Registry (NIPR) Producer Database (PDB) system. If applicant is not currently listed in the PDB, applicant must obtain and attach a Certificate of Good Standing from the resident state that is not more than ninety (90) days old. Surplus lines applicants are not required to provide financial responsibility.
Applicant cannot apply for both General Lines Agcy/Agnt Property & Casualty AND General Lines Agcy/Agnt Life, Accident, Health and HMO simultaneously. Please submit separate application at a later time.
If applicant responds "yes" to one of the background questions please submit supporting documents electronically via NIPR's Attachments Warehouse. The documents may also be submitted to the state via mail, email, or fax.