Texas Insurance Code 842.154 – Bond Requirements for Certain Officers and Employees
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(a) Each group hospital service corporation shall post a bond for the officer or employee responsible for the handling of the corporation’s money. The bond must be:
(1) issued by a surety company licensed by the department to do business in this state; and
(2) at all times in an amount at least equal to $25,000.
(b) In addition to the bond required under Subsection (a), the corporation shall post a separate bond or a blanket bond for all employees who have access to the money of the corporation. The bond must be in a reasonable amount set by the commissioner in the amount of at least $500, not to exceed $10,000.
Terms Used In Texas Insurance Code 842.154
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(c) A bond required by this section must be payable to the commissioner for the use and benefit of the corporation.