Sec. 1101.355. ADDITIONAL GENERAL ELIGIBILITY REQUIREMENTS FOR BUSINESS ENTITIES. (a) To be eligible for a license under this chapter, a business entity must:
(1) designate one of its managing officers as its broker for purposes of this chapter; and
(2) provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence if the designated broker owns less than 10 percent of the business entity.
(b) A business entity may not act as a broker unless the entity's designated broker is a licensed individual broker in active status and good standing according to the commission's records.
(b-1) In determining whether a designated broker is in good standing under this section, the commission may consider:
(1) the disciplinary history of:
(A) the broker; or
(B) any business entity for which the broker serves or previously served as a designated broker; and
(2) the payment status of any amount owed to the commission by:
(A) the broker; or
(B) any business entity for which the broker serves or previously served as a designated broker.
(c) A business entity that receives compensation on behalf of a license holder must be licensed as a broker under this chapter.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1064 (S.B. 747), Sec. 7, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 34, eff. January 1, 2016.
Section: Previous 1101.304 1101.305 1101.351 1101.352 1101.3521 1101.353 1101.354 1101.355 1101.356 1101.357 1101.358 1101.359 1101.360 1101.361 1101.362 NextLast modified: September 28, 2016