A surplus lines agents license is required for any person or entity that issues or causes to be issued insurance contracts with eligible surplus lines insurers.
The following activities of an employee in a surplus lines agency do not require a surplus lines license if the employee does not receive any direct commission from selling, soliciting, binding, effecting, or procuring insurance policies, contracts or coverage, and/or the employee's compensation is not varied by the volume of premiums taken and received:
- Clerical and administrative services, including incidental taking of information from clients, receipt of premiums in the office, or transmitting to clients prepared marketing materials or other prepared information and materials including invoices and evidences of coverage;
- Contacts clients to obtain or confirm information necessary to process an application;
- Performing the task of underwriting; or
- Contacting clients, insureds, agents, other persons or insurers to gather and transmit information regarding claims and losses.
To be licensed as a surplus lines agent, an individual, corporation, partnership or limited liability company must hold either a general lines property and casualty agents license or a managing general agents license.
An individual license applicant must take and pass the surplus lines agent license exam.
At least one employee of a licensed surplus lines agency must maintain an individual license. A licensed entity must notify TDI within 30 days of hiring or terminating a licensed employee.