Texas Statutes
Subchapter H. License Requirements
Section 1101.355. Additional General Eligibility Requirements for Business Entities

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.