Texas Insurance Code

§ 942.052 — SECURITY REQUIREMENTS

IN § 942.052Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part G. LLOYD'S PLAN AND RECIPROCAL AND INTERINSURANCE EXCHANGES · Ch. 942. RECIPROCAL AND INTERINSURANCE EXCHANGES · Art. B. FORMATION AND STRUCTURE OF EXCHANGE

Statute text

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(a)Except as provided by Subsection (d), to act as an attorney in fact, an individual, firm, or corporation must execute a good and sufficient fidelity bond that obligates the principal and surety to pay a pecuniary loss of money or property, not exceeding the amount of the bond, that is sustained by the exchange through fraud, dishonesty, forgery, theft, embezzlement, wrongful abstraction, or wilful misapplication on the part of the attorney in fact, directly or through connivance with others.

(b)The bond must:

(1)be acceptable to the department;

(2)be payable to the subscribers or the department; and

(3)be in the amount of:

(A)$25,000 for an individual or firm; or

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Legislative history

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