The Texas Department of Insurance (the “TDI”) has scheduled a public meeting for March 26, 2014 to discuss the implementation of SB 697, SB 951, SB 1806, HB 3410 and HB 1405, and general surplus lines rules development. SB 697 exempts certain non-resident individuals from needing to be licensed as a Texas general property and casualty agent in order to obtain a Texas surplus lines agent license. SB 951 conforms Texas surplus lines law to the provisions of the Nonadmitted and Reinsurance Reform Act of 2010. SB 1806 imposes penalties on surplus lines agents that are late in filing their policies. HB 3410 relates to managing underwriters who are involved in surplus lines insurance transactions and the collection of surplus lines insurance premium taxes. HB 1405 amends parts of HB 3410, such as the collection of surplus lines taxes by a managing underwriter, and sets forth certain record keeping and filing requirements.
In particular, the TDI would like input on the following items:
- Whether any rules are needed to further clarify requirements related to exempt commercial purchasers.
- Whether agents planning to use a third party provider to perform its stamping office filing requirements should be required to provide notice to TDI.
- Whether there are any standards TDI should consider for surplus lines filings to enhance uniformity.