(a) A local mutual aid association's officer responsible for the funds of the association shall file with the department a surety bond.
(b) The surety bond must be:
(1) executed by a surety company authorized to do business in this state;
(2) satisfactory to the department; and
(3) payable in an amount and conditioned as specified by Section 887.054.
(c) This section does not apply to a local mutual aid association that:
(1) has a total membership of 1,000 or fewer members;
(2) charges $1 or less each for annual dues or assessments; and
(3) charges $2.50 or less for a membership fee.
(d) An association exempted under Subsection (c) shall file with the department a bond in the amount of $1,000 and conditioned as provided by Section 887.054.