What must an agent possess to sell surplus lines insurance in Texas?

To sell surplus lines insurance in Texas, an agent must possess a valid surplus lines agent license. This authorization is specifically required because surplus lines insurance involves coverage that is not available through licensed standard insurers in the state. The surplus lines market exists to provide coverage for risks that traditional insurance carriers may reject, making this specialization necessary.

Obtaining a surplus lines agent license ensures that the individual has met specific training and regulatory requirements set by the Texas Department of Insurance. This license verifies that the agent is knowledgeable about the nuances of surplus lines coverage, understands the regulatory framework governing it, and can appropriately advise clients on these types of policies.

The other options may represent various types of insurance licenses, but they do not provide the specific authorization needed to engage in the surplus lines market. Thus, having a valid surplus lines agent license is essential for compliance with state regulations and for properly serving clients in need of this specialized insurance.