What regulates the foreign insurance agencies wishing to operate in Texas?

The regulation of foreign insurance agencies wishing to operate in Texas is handled through the issuance of a Certificate of Authority. This certificate is essential for any foreign insurer—including those from outside of Texas—to conduct business legally within the state.

In order to obtain this Certificate of Authority, the foreign insurance company must meet specific regulatory requirements set forth by the Texas Department of Insurance. These requirements are in place to ensure that the foreign insurer complies with local laws and maintains the financial stability necessary to protect policyholders.

The other options, while related to the governance and oversight of the insurance industry, do not specifically pertain to the authorization process for foreign insurance agencies. The state legislature creates laws, the National Insurance Board provides standards and oversight at a national level, and local governments have limited impact on insurance regulation, which is primarily managed at the state level. The Certificate of Authority is the key document that directly enables foreign insurers to operate within Texas.