What is necessary for a foreign insurance agency to operate in Texas?

For a foreign insurance agency to operate in Texas, it is essential to obtain a Certificate of Authority. This certificate serves as official permission granted by the Texas Department of Insurance, allowing the agency to conduct business within the state. It verifies that the foreign insurer complies with Texas regulations and meets the necessary financial and operational standards.

The Certificate of Authority is different from an insurance license, which is typically required for individual agents, rather than for insurance agencies or companies. An operational permit is not specifically referenced in Texas insurance law, and while a registration form may be part of the application process, it does not grant the right to operate independently. The Certificate of Authority is the definitive document indicating that the foreign insurance agency is legally certified to do business in Texas.