What is a requirement for a surplus lines insurer in Texas?

A surplus lines insurer in Texas must be listed on the Texas Department of Insurance's approved list. This requirement ensures that the insurer meets certain standards of financial stability and regulatory compliance. Surplus lines insurance provides coverage for risks that standard insurers may not be willing to underwrite, and by being on the approved list, these insurers demonstrate their capability to handle these unique or higher-risk policies responsibly.

Being listed also helps protect consumers, as it guarantees that the insurer adheres to specific regulatory requirements, thus providing a level of assurance regarding the insurer's reliability and solvency. This is particularly important in the surplus lines market, which often deals with complex and less common types of coverage that may not be available through traditional insurers.