Texas Code § 981.203

QUALIFICATIONS FOR SURPLUS LINES LICENSE
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Sec. 981.203. QUALIFICATIONS FOR SURPLUS LINES LICENSE. (a) The department may issue a surplus lines license to an applicant who the department determines complies with Subsection (b) and is:
(1) an individual who:
(A) has passed an examination under Chapter 4002 and department rules; and
(B) holds a current license as:
(i) a general property and casualty agent authorized under Subchapter B , Chapter 4051 ; or
(ii) a managing general agent; or
(2) a corporation, limited liability company, or partnership that:
(A) has at least one officer or director or at least one active partner who has passed the required surplus lines license examination;
(B) holds a current license as:
(i) a general property and casualty agent authorized under Subchapter B , Chapter 4051 ; or
(ii) a managing general agent; and
(C) conducts insurance activities under this chapter only through an individual licensed under this section.
(a-1) Notwithstanding Subsection (a)(1)(B), an individual is not required to obtain a general property and casualty agent license to hold a surplus lines agent license if:
(1) the home state of each insured is Texas;
(2) the individual is a nonresident of this state;
(3) the individual is licensed as a surplus lines agent in the individual's state of residence;
(4) the individual is not required by the individual's state of residence to hold a general property and casualty agent license to become licensed as a surplus lines agent;
(5) the individual has provided information acceptable to the commissioner that the individual's state of residence does not require a general property and casualty agent license for a surplus lines agent license;
(6) the individual's state of residence does not require a surplus lines agent to search for the availability of insurance in the individual's state of residence before the insurance is placed through a surplus lines agent;
(7) the individual's state of residence allows a licensed general property and casualty agent to search for the availability of insurance in the individual's state of residence;
(8) the individual has a professional relationship with, and each transaction is conducted through, a person who:
(A) is a licensed general property and casualty agent in this state or in the state of each transaction; and
(B) searches for the availability of insurance in this state before the insurance is placed through a surplus lines agent; and
(9) each transaction complies with the laws of the state in which it occurs.
(b) The agent must:
(1) pay an application fee as determined by the department; and
(2) submit a properly completed license application.

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