Texas 2013 - 83rd Regular

Texas House Bill HB1405 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Smithee (Senate Sponsor - Carona) H.B. No. 1405
2	2	(In the Senate - Received from the House April 29, 2013;
3	3	April 30, 2013, read first time and referred to Committee on
4	4	Business and Commerce; May 14, 2013, reported favorably by the
5	5	following vote: Yeas 9, Nays 0; May 14, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the collection of surplus lines insurance premium taxes
11	11	for insurance placed with a managing underwriter.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 225.006, Insurance Code, is amended to
14	14	read as follows:
15	15	Sec. 225.006. COLLECTION OF TAX BY AGENT. (a) Except as
16	16	otherwise provided by this section, the [The] surplus lines agent
17	17	shall collect from the insured the tax imposed by this chapter at
18	18	the time of delivery of the cover note, certificate of insurance,
19	19	policy, or other initial confirmation of insurance and the full
20	20	amount of the gross premium charged by the eligible surplus lines
21	21	insurer for the insurance.
22	22	(b) Subject to Subsection (c) and notwithstanding
23	23	[Notwithstanding] any other law, if a surplus lines agent [that]
24	24	places an insurance policy with a managing underwriter, as defined
25	25	by Section 981.002, the managing underwriter shall collect, report,
26	26	and pay the tax imposed by this chapter.
27	27	(c) A surplus lines agent and a managing underwriter may
28	28	enter into an agreement to provide that the surplus lines agent is
29	29	responsible for filing, reporting, collection, payment, and all
30	30	other requirements imposed by this chapter and Chapter 981,
31	31	including the requirement to pay the tax and file the tax report
32	32	imposed by this chapter. An agreement under this subsection must be
33	33	in writing and must be entered into at or before the time coverage
34	34	is bound under the policy. The agreement may apply to multiple
35	35	policies or all policies between a surplus lines agent and a
36	36	managing underwriter.
37	37	SECTION 2. Sections 981.105(a) and (b), Insurance Code, are
38	38	amended to read as follows:
39	39	(a) Not later than the 60th day after the later of the
40	40	effective date or the issue date of new or renewal surplus lines
41	41	insurance, a surplus lines agent responsible under Section 225.006
42	42	for the filing, reporting, collection, payment, and other
43	43	requirements imposed by Chapter 225 shall file with the stamping
44	44	office:
45	45	(1) a copy of the policy issued; or
46	46	(2) if the policy has not been issued, a copy of the
47	47	certificate, cover note, or other confirmation of insurance
48	48	delivered to the insured.
49	49	(b) The [A] surplus lines agent described by Subsection (a)
50	50	shall also promptly file with the stamping office:
51	51	(1) a copy of each substitute certificate, cover note,
52	52	or other confirmation of insurance delivered to an insured;
53	53	(2) a copy of each endorsement of an original policy,
54	54	certificate, cover note, or other confirmation of insurance
55	55	delivered to an insured; and
56	56	(3) a memorandum from the agent informing the stamping
57	57	office of the substance of any change represented by a document
58	58	described by Subdivision (1) or (2), as compared with the original
59	59	coverage.
60	60	SECTION 3. Section 981.213, Insurance Code, is amended to
61	61	read as follows:
62	62	Sec. 981.213. FILING CONTRACT WITH STAMPING OFFICE. A
63	63	surplus lines agent responsible under Section 225.006 for the
64	64	filing, reporting, collection, payment, and other requirements
65	65	imposed by Chapter 225 shall report to and file with the stamping
66	66	office a copy of each surplus lines insurance contract as provided
67	67	in the stamping office's plan of operation. The department may
68	68	accept that filing instead of the filings required under Section
69	69	981.105.
70	70	SECTION 4. Section 981.215(a), Insurance Code, is amended
71	71	to read as follows:
72	72	(a) A surplus lines agent shall maintain a complete record
73	73	of each surplus lines contract obtained by the agent, including any
74	74	of the following, if applicable:
75	75	(1) a copy of the daily report;
76	76	(2) the amount of the insurance and risks insured
77	77	against;
78	78	(3) a brief general description of the property
79	79	insured and the location of that property;
80	80	(4) the gross premium charged;
81	81	(5) the return premium paid;
82	82	(6) the rate of premium charged on the different items
83	83	of property;
84	84	(7) the contract terms, including the effective date;
85	85	(8) the insured's name and post office address;
86	86	(9) the insurer's name and home office address;
87	87	(10) the amount collected from the insured; [and]
88	88	(11) an agreement under Section 225.006(c); and
89	89	(12) any other information required by the department.
90	90	SECTION 5. Section 981.223(a), Insurance Code, is amended
91	91	to read as follows:
92	92	(a) A managing underwriter with whom an insurance policy is
93	93	placed in the manner described by Section 225.006(b) shall maintain
94	94	appropriate records and make the records available for inspection
95	95	by the department and the comptroller, including records of:
96	96	(1) the name and address of the insured;
97	97	(2) the policy number and policy period;
98	98	(3) the name of the eligible surplus lines insurer;
99	99	(4) the gross premium charged for the insurance;
100	100	(5) the name of the surplus lines agent who placed the
101	101	policy with the managing underwriter;
102	102	(6) the license number of the surplus lines agent who
103	103	placed the policy with the managing underwriter; and
104	104	(7) an agreement, if any, under Section 225.006(c)
105	105	that applies to the policy [documentation that the managing
106	106	underwriter has transmitted to the surplus lines agent written
107	107	confirmation of the agent's written agreement to act as the agent
108	108	for the placement of the policy and be responsible for all filing,
109	109	reporting, collection, and payment requirements imposed by this
110	110	chapter and by Chapter 225].
111	111	SECTION 6. This Act takes effect January 1, 2014.
112	112	* * * * *