(a) A bond or motor vehicle liability insurance policy under this subchapter must:
(1) be issued by a surety company or insurance company:
(A) authorized to write motor vehicle liability insurance in this state; or
(B) that complies with Subsection (b); and
(2) cover the amounts, excluding interest and costs, required to establish financial responsibility under Section 601.072.
(b) A bond or motor vehicle liability insurance policy issued by a surety company or insurance company that is not authorized to do business in this state is effective under this subchapter only if:
(1) the bond or policy is issued for a motor vehicle that:
(A) is not registered in this state; or
(B) was not registered in this state on the effective date of the most recent renewal of the policy; and
(2) the surety company or insurance company executes a power of attorney authorizing the department to accept on the company's behalf service of notice or process in an action arising out of the collision on the bond or policy.
(c) The bond must be filed with and approved by the department.