Relating to timely filing of a surplus lines policy; providing penalties.
Impact
The bill is expected to enhance compliance among surplus lines agents by implementing financial penalties linked to late filing. This may lead to a more disciplined filing process, ultimately encouraging agents to prioritize timely submissions. As changes only affect surplus lines policies filed on or after the bill's effective date, it preserves the regulatory framework for pre-existing policies, ensuring that agents are informed about the stipulations imposed on them regarding new filings.
Summary
SB1806 is a bill aimed at amending the Insurance Code of Texas related to the timely filing of surplus lines policies by insurance agents. The provisions of the bill introduce a structured penalty system for agents who file policies after specified deadlines. The bill stipulates fees of $50 or $100, depending on the agent's filing history in the preceding year, for those who file late within 180 days of the due date. For filings made after 180 days but within one year, a fee of $200 is applied if the agent meets certain conditions regarding prior late filings.
Contention
While SB1806 aims at improving the administration of surplus lines insurance, it could raise concerns among agents regarding the financial burden of penalties. The graduated nature of the penalty fees attempts to consider agents' filing histories, yet it may be perceived as too punitive for those with occasional lapses. The debate surrounding the bill could center on whether the penalties are necessary for encouraging compliance or if they disproportionately affect less established agents or those managing a smaller volume of filings.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the filing with the Texas Ethics Commission of campaign treasurer appointments and reports of political contributions and political expenditures.
Relating to local option elections to legalize or prohibit the operation of eight-liners; imposing fees and issuing fee permits; creating criminal offenses; increasing criminal penalties.
Relating to the filing with the Texas Ethics Commission of campaign treasurer appointments and reports of political contributions and political expenditures.