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A BILL TO BE ENTITLED
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AN ACT
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relating to the underwriting authority of certain surplus lines |
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insurance agents and to the collection of surplus lines insurance |
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premium taxes in certain circumstances. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 225.006, Insurance Code, is amended to |
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read as follows: |
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Sec. 225.006. COLLECTION OF TAX BY AGENT. (a) The surplus |
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lines agent shall collect from the insured the tax imposed by this |
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chapter at the time of delivery of the cover note, certificate of |
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insurance, policy, or other initial confirmation of insurance and |
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the full amount of the gross premium charged by the eligible surplus |
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lines insurer for the insurance. |
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(b) Notwithstanding any other law, a surplus lines agent who |
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obtains insurance from another surplus lines agent exercising |
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underwriting authority for an eligible surplus lines insurer under |
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Section 981.209 may by written contract agree to collect, report, |
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and pay the tax imposed by this chapter. |
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(c) A surplus lines agent who enters into a contract |
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described by Subsection (b) shall keep a copy of the contract and |
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make the contract available for inspection by the comptroller. |
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(d) A surplus lines agent who contracts to collect, report, |
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and pay the tax in the manner described by Subsection (b) shall: |
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(1) maintain appropriate records, including a record |
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of each surplus lines contract with respect to which duties under |
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the contract have been performed; and |
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(2) not later than the 30th day after the date on which |
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the tax is paid to the comptroller, provide the surplus lines agent |
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exercising underwriting authority: |
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(A) the name and address of the insured; |
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(B) the policy number and policy period; |
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(C) the name of the eligible surplus lines |
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insurer; |
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(D) the gross premium charged for the insurance; |
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(E) the amount of the tax collected; and |
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(F) the date on which the tax was paid to the |
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comptroller. |
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SECTION 2. Subchapter E, Chapter 981, Insurance Code, is |
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amended by adding Section 981.209 to read as follows: |
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Sec. 981.209. UNDERWRITING AUTHORITY ON BEHALF OF OTHER |
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AGENT. (a) A surplus lines agent may exercise underwriting |
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authority for an eligible surplus lines insurer, including |
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exercising the authority to rate and accept risks, bind coverage, |
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issue formal evidence of coverage, and cancel coverage, only under |
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a current written agreement between the underwriting surplus lines |
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agent and the eligible surplus lines insurer. The agreement must: |
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(1) identify the insurer; |
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(2) describe the scope of the underwriting authority |
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granted; and |
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(3) reserve the final underwriting review authority to |
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the insurer. |
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(b) A surplus lines agent or eligible surplus lines insurer |
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who enters into an agreement under Subsection (a) shall keep a copy |
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of the agreement and make the agreement available for review by the |
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department. |
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SECTION 3. This Act takes effect September 1, 2011. |