Section 85.403 - Insurance(a) Insurance provisions. General liability and fire insurance must be maintained in an amount sufficient to protect pledged goods as provided in Texas Finance Code, §371.154. The insurance policy must specifically cover the loss of pledged goods, including jewelry. (1) General liability. (A) At a minimum, the amount of general liability insurance coverage must be $100,000 per occurrence from an insurance company with an A.M. Best rating of B+ or better. (B) In addition, pawnshops operating more than one licensed location must purchase an additional $10,000 of general liability insurance coverage per each operating location, excluding the first location. (2) Fire insurance. Fire insurance coverage must be purchased from an insurance company with an A.M. Best rating of B+ or better as follows: (A) for pawnshops not operating as part of a chain, fire insurance must be purchased in an amount not less than the lesser of: (i) the amount of pawn loans receivable due the pawnshop at the close of business on December 31st of the preceding year; or (B) for pawnshop chains that operate more than one licensed location, fire insurance must be purchased in an amount not less than the lesser of: (i) one-half the outstanding amount of the total pawnshop chain's pawn loans receivable due on December 31st of the preceding year; or (b) Variance. If a pawnshop's unique circumstances create a justifiable reason for not complying with subsection (a) of this section, the pawnshop may submit a written request for variance from this section. The request should explain in sufficient detail why compliance with the section is not feasible and the alternative measures that are proposed to manage the associated risk and protect pledged goods.7 Tex. Admin. Code § 85.403
The provisions of this §85.403 adopted to be effective October 1, 2000, 25 TexReg 9435; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3398