Texas Insurance Code 887.055 – Bond Requirements for Certain Persons
(a) In addition to the bond required by Section 887.054 and any other bond required by law, an association shall obtain a separate or blanket surety bond covering each other person who may have access to the association’s mortuary funds. The bond must:
(1) be issued by a surety authorized by the department to engage in business in this state;
(2) be payable to the department for the use and benefit of the association;
(3) obligate the principal and surety to pay any monetary loss sustained by the association through an act of fraud, dishonesty, forgery, theft, embezzlement, or wilful misapplication by a covered person, whether acting alone or with other persons; and
(4) be in an amount determined by the department of at least $1,000 but not more than $5,000.
(b) Successive recoveries may be made on a bond under this section until the amount of the bond is exhausted.
Terms Used In Texas Insurance Code 887.055
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005