82R10591 TJS-F
By: Lucio S.B. No. 1806
A BILL TO BE ENTITLED
AN ACT
relating to timely filing of surplus lines policy; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 981.105, Insurance Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) The commissioner may assess a fee against an agent who
files a surplus lines policy after the date specified in Subsection
(a). The amount of the fee is:
(1) for an agent who, in the calendar year immediately
preceding the year in which the policy is late-filed, files as
determined by the stamping office:
(A) not more than five percent of the total
number of policies the agent is required to file after the date
specified in Subsection (a), $25 for each late-filed policy; or
(B) more than five percent of the total number of
policies the agent is required to file after the date specified in
Subsection (a), $50 for each late-filed policy; or
(2) for an agent who files a late-filed policy with an
effective date before January 1, 2010, that at the time the policy
is filed has not been listed in a previous late-filed policy report
of the stamping office, $25 for each late-filed policy.
(d) The assessment of a fee under Subsection (c) does not
establish a violation for purposes of Section 81.004, 82.051,
82.052, 82.054, 82.056, or 84.022(b)(3).
(e) An agent is subject to penalties under Chapter 84 if, in
each of two consecutive calendar years, the agent files more than
five percent of the total number of policies the agent files after
the date specified in Subsection (a).
SECTION 2. The changes in law made by this Act apply to a
surplus lines policy filed on or after the effective date of this
Act. A surplus lines policy filed before the effective date of this
Act is governed by the law in effect immediately before that date,
and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.