Texas Insurance Code

§ 887.055 — BOND REQUIREMENTS FOR CERTAIN PERSONS

IN § 887.055Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES · Art. B. GENERAL POWERS AND DUTIES; OFFICERS AND DIRECTORS

Statute text

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(a)In addition to the bond required by Section 887.054 and any other bond required by law, an association shall obtain a separate or blanket surety bond covering each other person who may have access to the association's mortuary funds. The bond must:

(1)be issued by a surety authorized by the department to engage in business in this state;

(2)be payable to the department for the use and benefit of the association;

(3)obligate the principal and surety to pay any monetary loss sustained by the association through an act of fraud, dishonesty, forgery, theft, embezzlement, or wilful misapplication by a covered person, whether acting alone or with other persons; and

(4)be in an amount determined by the department of at least $1,000 but not more than $5,000.

(b)Successive recoveries may be made on a bond under this section until the amount of the bond is exhausted.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.