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A BILL TO BE ENTITLED
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AN ACT
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relating to the duty of a surplus lines insurance agent in the |
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placement of a surplus lines insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 981.004, Texas Insurance Code is amended |
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by amending Subsection (a) and adding subsection (d), to read as |
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follows: |
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(a) An eligible surplus lines insurer may provide surplus |
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lines insurance only if: |
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(1) the full amount of required insurance cannot be |
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obtained, after a diligent effort by the surplus lines agent |
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placing the policy, from an insurer authorized to write and |
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actually writing that kind and class of insurance in this state; |
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(2) the insurance is placed through a surplus lines |
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agent; and |
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(3) the insurer meets the eligibility requirements of |
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Subchapter B as of the inception date and annual anniversary date of |
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each insurance contract, cover note, or other confirmation of |
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insurance. |
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(d) The surplus lines agent placing the policy shall |
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maintain in the agent's files a record indicating the performance |
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of the diligent effort required by subsection (a) of this section, |
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available for inspection by the department. |
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SECTION 2. This Act takes effect January 1, 2016. |