Relating to timely filing of a surplus lines policy; providing penalties.
If enacted, HB 3799 will create a system of penalties based on the timeliness of policy submissions. For instance, an agent filing a surplus lines policy late, though within 180 days of the deadline, could face fees ranging from $50 to $100 based on prior filing behaviors. Should the filing occur later, additional fees apply, with escalating penalties for repeated late filings. This aims to deter non-compliance and encourage agents to adhere to designated deadlines.
House Bill 3799 is an act that addresses the timely filing of surplus lines policies in Texas and introduces a fee structure aimed at ensuring compliance with filing deadlines. The bill amends Section 981.105 of the Insurance Code by adding new subsections that outline the penalties for agents who fail to file policies within the designated timeframes. The purpose of these changes is to streamline the filing process and enhance regulatory oversight within the insurance industry.
Discussion surrounding HB 3799 may highlight concerns regarding the potential financial burden placed on agents who inadvertently miss filing deadlines, especially smaller firms or individual agents who might struggle with the regulatory requirements. Advocates for the bill argue that it is essential for maintaining order and consistency in the insurance market, while opponents may argue that it places excessive penalties on agents and does not account for legitimate circumstances leading to late filings.