By: Smithee (Senate Sponsor - Carona) H.B. No. 1405
(In the Senate - Received from the House April 29, 2013;
April 30, 2013, read first time and referred to Committee on
Business and Commerce; May 14, 2013, reported favorably by the
following vote: Yeas 9, Nays 0; May 14, 2013, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the collection of surplus lines insurance premium taxes
for insurance placed with a managing underwriter.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 225.006, Insurance Code, is amended to
read as follows:
Sec. 225.006. COLLECTION OF TAX BY AGENT. (a) Except as
otherwise provided by this section, the [The] surplus lines agent
shall collect from the insured the tax imposed by this chapter at
the time of delivery of the cover note, certificate of insurance,
policy, or other initial confirmation of insurance and the full
amount of the gross premium charged by the eligible surplus lines
insurer for the insurance.
(b) Subject to Subsection (c) and notwithstanding
[Notwithstanding] any other law, if a surplus lines agent [that]
places an insurance policy with a managing underwriter, as defined
by Section 981.002, the managing underwriter shall collect, report,
and pay the tax imposed by this chapter.
(c) A surplus lines agent and a managing underwriter may
enter into an agreement to provide that the surplus lines agent is
responsible for filing, reporting, collection, payment, and all
other requirements imposed by this chapter and Chapter 981,
including the requirement to pay the tax and file the tax report
imposed by this chapter. An agreement under this subsection must be
in writing and must be entered into at or before the time coverage
is bound under the policy. The agreement may apply to multiple
policies or all policies between a surplus lines agent and a
managing underwriter.
SECTION 2. Sections 981.105(a) and (b), Insurance Code, are
amended to read as follows:
(a) Not later than the 60th day after the later of the
effective date or the issue date of new or renewal surplus lines
insurance, a surplus lines agent responsible under Section 225.006
for the filing, reporting, collection, payment, and other
requirements imposed by Chapter 225 shall file with the stamping
office:
(1) a copy of the policy issued; or
(2) if the policy has not been issued, a copy of the
certificate, cover note, or other confirmation of insurance
delivered to the insured.
(b) The [A] surplus lines agent described by Subsection (a)
shall also promptly file with the stamping office:
(1) a copy of each substitute certificate, cover note,
or other confirmation of insurance delivered to an insured;
(2) a copy of each endorsement of an original policy,
certificate, cover note, or other confirmation of insurance
delivered to an insured; and
(3) a memorandum from the agent informing the stamping
office of the substance of any change represented by a document
described by Subdivision (1) or (2), as compared with the original
coverage.
SECTION 3. Section 981.213, Insurance Code, is amended to
read as follows:
Sec. 981.213. FILING CONTRACT WITH STAMPING OFFICE. A
surplus lines agent responsible under Section 225.006 for the
filing, reporting, collection, payment, and other requirements
imposed by Chapter 225 shall report to and file with the stamping
office a copy of each surplus lines insurance contract as provided
in the stamping office's plan of operation. The department may
accept that filing instead of the filings required under Section
981.105.
SECTION 4. Section 981.215(a), Insurance Code, is amended
to read as follows:
(a) A surplus lines agent shall maintain a complete record
of each surplus lines contract obtained by the agent, including any
of the following, if applicable:
(1) a copy of the daily report;
(2) the amount of the insurance and risks insured
against;
(3) a brief general description of the property
insured and the location of that property;
(4) the gross premium charged;
(5) the return premium paid;
(6) the rate of premium charged on the different items
of property;
(7) the contract terms, including the effective date;
(8) the insured's name and post office address;
(9) the insurer's name and home office address;
(10) the amount collected from the insured; [and]
(11) an agreement under Section 225.006(c); and
(12) any other information required by the department.
SECTION 5. Section 981.223(a), Insurance Code, is amended
to read as follows:
(a) A managing underwriter with whom an insurance policy is
placed in the manner described by Section 225.006(b) shall maintain
appropriate records and make the records available for inspection
by the department and the comptroller, including records of:
(1) the name and address of the insured;
(2) the policy number and policy period;
(3) the name of the eligible surplus lines insurer;
(4) the gross premium charged for the insurance;
(5) the name of the surplus lines agent who placed the
policy with the managing underwriter;
(6) the license number of the surplus lines agent who
placed the policy with the managing underwriter; and
(7) an agreement, if any, under Section 225.006(c)
that applies to the policy [documentation that the managing
underwriter has transmitted to the surplus lines agent written
confirmation of the agent's written agreement to act as the agent
for the placement of the policy and be responsible for all filing,
reporting, collection, and payment requirements imposed by this
chapter and by Chapter 225].
SECTION 6. This Act takes effect January 1, 2014.
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