What must an insurance certificate contain according to Texas Private Security Act?

The correct answer is that an insurance certificate must contain details of the coverage type and limits. This requirement ensures that a private security contractor has adequate insurance coverage to protect against potential liabilities. The specifics of coverage type and limits are crucial for understanding the extent of protection provided, allowing clients and regulatory authorities to evaluate whether the security provider meets the necessary standards for operation and can handle any claims that arise during the course of their business.

Having clear information about the coverage also helps in assessing risks involved in providing security services. For instance, if a security company has a professional liability coverage limit, clients can ascertain whether it is sufficient against potential claims related to negligence or failure to perform.

While the other options present important aspects of insurance management in general, they do not specifically pertain to the Texas Private Security Act's requirements for insurance certificates. A licensed insurance agent's signature focuses on validation rather than content. Proof of sufficient funds pertains to financial stability and regulatory compliance but isn’t a direct requirement of the insurance certificate itself. An annual renewal date, although relevant to the maintenance of insurance, does not address the core information necessary to determine the coverage that is in place at a given time. Thus, detailing the coverage type and limits stands out as essential for compliance and effective