How to Become Eligible
To become an eligible surplus lines insurer, the company must be licensed in its home state or country to sell insurance, but it may not be licensed in Texas.
Each insurer must register with the Texas Department of Insurance (TDI), which is responsible for keeping a record of surplus lines insurers in the state.
A foreign surplus lines insurer is an insurer that is domiciled in the United States. TDI is responsible for determining the evidence filing requirements for foreign insurers in Texas.
Foreign insurers must meet the following requirements to become eligible surplus lines insurers in Texas, in accordance with the Texas Insurance Code and the Texas Administrative Code:
- Complete the Filing Requirements Checklist for Foreign (U.S.) Surplus Lines Insurers (form FIN 422)
- File financial statements with the National Association of Insurance Commissioners (NAIC) on an annual and quarterly basis
- Maintain capital and surplus of at least $15 million, as required by the Texas Insurance Code Section 981.057
- Submit a certified copy of the current license or Certificate of Authority from the insurer’s state of domicile
- Provide a description of proposed writings in Texas by line of business
Surplus lines filing requirement documents must be submitted to SLTX using the form below and to TDI. For more information, contact SLTX at (512) 531-1880.
Alien surplus lines insurers are insurers that are domiciled outside of the United States. There are two types of these insurers:
- Those listed on the NAIC International Insurance Department (IID) Quarterly Listing of Alien Insurers. Insurers in this category must file financial statements and reports with the NAIC, and do not file any evidence with TDI.
- Those not included on the NAIC list. These insurers must complete the Checklist for Alien (Non-U.S.) Surplus Lines Insurers (form FIN 423) and submit the following materials:
- Insurer annual report and/or audited financial statement
- Certified copy of the current license or Certificate of Authority from the insurer’s country of domicile
- Copy of the Trust Fund Agreement and a current Statement of Account from the trustee of the trust fund, which must maintain at least $5.4 million in a Federal Reserve member bank
- Premiums written in Texas by each surplus lines broker
- Actuarial opinion
- Attorney for service of process
All required documents must be submitted to SLTX using the form below and to TDI. For additional information, contact SLTX at (512) 531-1880.