Texas Insurance Agency Bond
What is a Texas Insurance Agency Bond?
A $25,000 Insurance Agency Bond is required in Texas for those having applied to the Texas Department of Insurance for a license as an Insurance Agent to engage in the business of insurance sales as an Insurance Agent in accordance with the Texas Insurance Code. The insurance agency surety bond is for the use and benefit of any customer of the principal as defined by the Texas Insurance Code, §4001.106 and ensures ethical business conduct and faithful compliance with the statutory provisions defined by the state of Texas. The surety bond provides security to guarantee that the bonded principal will discharge losses that result from any final judgment recovered against the principal by any customer up to but not exceeding the penal sum of the surety bond.