What does the Texas Surplus Lines Insurance Act regulate?

The Texas Surplus Lines Insurance Act specifically regulates the sale of surplus lines insurance in the state of Texas. Surplus lines insurance is essential for providing coverage when traditional insurance markets are unable to meet the needs of customers, often due to the unique or high-risk nature of the insurance they require. This act governs how surplus lines insurance can be placed and under what conditions it can be sold, ensuring that it is handled in a manner that protects consumers while providing necessary coverage options.

In contrast, the other options do not accurately reflect the scope of the Texas Surplus Lines Insurance Act. The marketing of standard insurance policies pertains to different regulations, as standard insurance is governed by more traditional insurance laws. Additionally, while the licensing of insurance agents is an important aspect of the insurance industry, it is covered under different regulations that apply to general insurance practices rather than specifically surplus lines. Lastly, the creation of state-funded insurance programs is a separate area of insurance regulation that does not align with the objectives of the Surplus Lines Insurance Act. This focus on surplus lines insurance underscores its unique role in ensuring that consumers have access to necessary coverage when traditional methods fail.