Brokers and managers who offer reinsurance intermediary services must be registered with the Texas Department of Insurance (TDI) and secure a Reinsurance Intermediary Bond to operate.
Jet Insurance Company provides the Reinsurance Intermediary Bond to act as an assurance for the Texas Department of Insurance that the licensed broker or manager, and their employees, will follow all state insurance regulations. If a license violation such as negligence, misrepresentation, a breach of contract, or fraud is committed, the surety bond will act as a financial guarantee for any damaged client of the reinsurance intermediary business.
According to the Commissioner of the Texas Department of Insurance, the Reinsurance Intermediary Bond amount will depend on the license type you are applying for. If you are seeking a reinsurance intermediary broker license, a $100,000 limit is required, and if you are applying for a manager license, a $250,000 bond is needed.
At Jet, the cost of the Reinsurance Intermediary Bond will be a small percentage of either the $100k or $250k bond amount and is based on your credit score and business financial information. Once you submit your application through our online system, a Jet underwriter will quickly review the details of your reinsurance intermediary business. Approved rate options at monthly, annual, and multi-year bond terms will then be sent to your email. Simply click the best plan for you, fulfill payment, and receive a copy of your bond form instantly.
The Jet team has created a quick and easy surety bond application process that can be completed online. We will only ask for necessary information such as your contact details, required bond amount, and personal social security number for a soft credit check. If any additional info is needed, like your business financial statements, we will get in touch with you right away.
Once the review process is complete, our underwriter will send you over approved rate options that are ready for immediate purchase. You’ll receive a copy of your receipt and Reinsurance Intermediary Bond form as soon as payment has been fulfilled.
Jet can file your surety bond for you at no extra cost! However, if you are a first-time license applicant with the Texas Department of Insurance, your completed Reinsurance Intermediary License Application and bond form must be submitted together. The option to file the bond yourself can be selected at checkout.
The original signed and sealed Reinsurance Intermediary Bond must be filed with the TDI at the following mailing address:
Texas Department of Insurance
Agent and Adjuster Licensing
PO Box 12069
Austin, TX 78711
Your reinsurance intermediary license with the Texas Department of Insurance will expire every two years. In order to qualify for a renewal, your Reinsurance Intermediary Bond must be active and on file with the TDI. However, the bond term does not need to line up with the license term.
If you are part of Jet’s monthly payment plan, you won’t have to worry about renewing your surety bond. As long as payments are made, the bond will stay active. In cases where you purchased the bond in full and upfront, Jet will send you a renewal invoice prior to the bond term expiration date. Just fulfill the standard payment due and you’ll be all set with the TDI for another term.
You can cancel the Reinsurance Intermediary Bond with Jet at any time. We only require that you send us a written cancellation request to our email at [email protected]and we will begin the process. A termination notice must be sent to the Texas Department of Insurance, and once received, the liability of your bond will be released within 30 days.
Considering your bond will technically be active during the grace period required by the TDI, Jet will need one last payment from bondholders who are enrolled in our monthly plan. All future payments will cease once this step has been taken care of.
As for refunds, if you purchased a multi-year bond term and cancel early, Jet will review your bond for any unused premium. Reimbursement for such will be sent to you once the Reinsurance Intermediary Bond has been officially cancelled.
Reinsurance intermediary brokers solicit, negotiate, and place reinsurance business on behalf of an insurer. Intermediary managers do exactly what their title implies, they manage the reinsurance business of an insurer. Both reinsurance intermediary brokers and managers are expected to follow all regulations stated in Chapter 4152 of the Texas Insurance Code as it applies to the duties of their license.
If it is found that they have committed a violation, the Texas Department of Insurance may order the guilty party to attend a mandatory hearing. Possible civil penalties include a cease and desist order, a loss of license (suspension or permanent revocation), large fines, civil action, and/or a bond claim.
Claims on the Reinsurance Intermediary Bond typically occur if the licensee commits gross negligence, misrepresentation, misappropriation of funds, or fraud. For example, managers are prohibited from committing an insurer to pay a claim without their prior approval to do so.
Damaged clients, or any person of the public, who feel that the reinsurance intermediary broker or manager has violated the State insurance code may file a complaint with the Texas Department of Insurance. If the licensee is found guilty of such violations, the TDI can file a bond claim on the claimant’s behalf or they may recommend the damaged party to take action against the licensee themselves. Either way, the Reisnruance Intermediary Bond will be used as restitution for losses incurred by the harmed party.
If your receive a bond claim notice from the TDI or a Texas court, contact Jet immediately. We will begin the process by asking that you provide us with all available information and documentation regarding the alleged license violation. The Jet team will utilize these details for an investigation of the claim.
Per the Texas Reinsurance Intermediary Bond form, Jet is legally obligated to make payment for justified claims (payouts never exceed the bond amount). You, the licensed broker or manager, are responsible for your actions, and therefore must reimburse Jet for the claim payment made on behalf of your transgression. Failure to do so will result in future difficulties obtaining a surety bond in the State of Texas, especially bonds that are required to work in the insurance industry.