What must accompany the application for a surplus lines license in Texas?

What must accompany the application for a surplus lines license in Texas?

• A. A letter of recommendation
• B. A business plan
• C. An annual fee of $50
• D. A criminal background check

Answer: (C)

To obtain a surplus lines license in Texas, an applicant is required to submit an annual fee, which is set at $50. This fee is necessary to process the application and maintain the regulatory framework that oversees surplus lines insurance. The payment of this fee ensures that the state's Department of Insurance can allocate resources to evaluate and manage the licensed surplus lines agents effectively. The requirement of an annual fee reflects standard practice in many states, serving as a means to fund administrative costs related to licensing and oversight. This mechanism helps ensure that only qualified individuals are eligible to provide surplus lines insurance, which involves coverage not typically available through standard markets, thereby maintaining the integrity and professionalism of the insurance industry.

To obtain a surplus lines license in Texas, an applicant is required to submit an annual fee, which is set at $50. This fee is necessary to process the application and maintain the regulatory framework that oversees surplus lines insurance. The payment of this fee ensures that the state's Department of Insurance can allocate resources to evaluate and manage the licensed surplus lines agents effectively.

The requirement of an annual fee reflects standard practice in many states, serving as a means to fund administrative costs related to licensing and oversight. This mechanism helps ensure that only qualified individuals are eligible to provide surplus lines insurance, which involves coverage not typically available through standard markets, thereby maintaining the integrity and professionalism of the insurance industry.