Texas 2017 - 85th Regular

Texas Senate Bill SB1491 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Zaffirini S.B. No. 1491
	2	+	(In the Senate - Filed March 8, 2017; March 20, 2017, read
	3	+	first time and referred to Committee on Business & Commerce;
	4	+	April 19, 2017, reported favorably by the following vote: Yeas 8,
	5	+	Nays 0; April 19, 2017, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
4	9		A BILL TO BE ENTITLED
5	10		AN ACT
6	11		relating to domestic surplus lines insurers; authorizing and
7	12		imposing a tax.
8	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	14		SECTION 1. The heading to Subtitle I, Title 6, Insurance
10	15		Code, is amended to read as follows:
11	16		SUBTITLE I. SURPLUS LINES INSURERS; COMPANIES [THAT ARE] NOT
12	17		ORGANIZED IN TEXAS
13	18		SECTION 2. Section 981.002(4), Insurance Code, is amended
14	19		to read as follows:
15	20		(4) "Eligible surplus lines insurer" means an insurer
16	21		that is not an authorized insurer, but that is eligible under
17	22		Subchapter B or B-1, in which surplus lines insurance is placed or
18	23		may be placed under this chapter.
19	24		SECTION 3. Chapter 981, Insurance Code, is amended by
20	25		adding Subchapter B-1 to read as follows:
21	26		SUBCHAPTER B-1. DOMESTIC SURPLUS LINES INSURER
22	27		Sec. 981.071. DEFINITION. In this subchapter, "domestic
23	28		surplus lines insurer" means an insurance company designated as a
24	29		domestic surplus lines insurer under Section 981.072.
25	30		Sec. 981.072. DESIGNATION AS DOMESTIC SURPLUS LINES
26	31		INSURER. (a) A property and casualty insurance company organized
27	32		under Chapter 822 that has capital and surplus in an amount
28	33		described by Section 981.057 may apply to the department in a form
29	34		and manner prescribed by the commissioner for designation as a
30	35		domestic surplus lines insurer.
31	36		(b) On approval of an application under Subsection (a), the
32	37		commissioner shall designate an applicant as a domestic surplus
33	38		lines insurer and issue to the applicant a domestic surplus lines
34	39		insurer certificate.
35	40		(c) Notwithstanding Section 822.101, a domestic surplus
36	41		lines insurer is not entitled to a certificate of authority to
37	42		engage in the business of insurance in this state in the admitted
38	43		market.
39	44		Sec. 981.073. APPLICABILITY OF OTHER LAW; CONFLICTS.
40	45		(a) Except as provided by Subsection (b), a domestic surplus lines
41	46		insurer is subject to:
42	47		(1) this chapter; and
43	48		(2) all other insurance laws, including Title 4,
44	49		applicable to a property and casualty insurance company organized
45	50		under Chapter 822.
46	51		(b) A domestic surplus lines insurer is not subject to:
47	52		(1) Section 38.003;
48	53		(2) Chapter 462;
49	54		(3) Chapter 463;
50	55		(4) Section 981.051;
51	56		(5) Section 981.101(b);
52	57		(6) Chapter 2301; and
53	58		(7) Chapter 2251.
54	59		(c) To the extent that this subchapter conflicts with any
55	60		other insurance law, this subchapter controls.
56	61		Sec. 981.074. AUTHORIZED BUSINESS. (a) A domestic surplus
57	62		lines insurer may only insure a risk in this state if:
58	63		(1) the insurance is procured as eligible surplus
59	64		lines insurance under this chapter; and
60	65		(2) the insurance is a kind of insurance the insurer is
61	66		authorized to write under the insurer's articles of incorporation.
62	67		(b) A domestic surplus lines insurer may not issue:
63	68		(1) a policy in the admitted market; or
64	69		(2) a policy to satisfy the financial responsibility
65	70		requirements of Chapter 601, Transportation Code, insurance
66	71		requirements of Chapter 406, Labor Code, or requirements of any
67	72		other law of this state mandating insurance coverage by an
68	73		insurance company authorized to engage in the business of insurance
69	74		in this state.
70	75		Sec. 981.075. TAXES IMPOSED. (a) The premium for a
71	76		surplus lines policy written under this subchapter is subject to
72	77		the premium tax, if applicable, imposed under Chapter 225.
73	78		(b) A domestic surplus lines insurer is subject to an
74	79		applicable maintenance tax as if the domestic surplus lines insurer
75	80		were an authorized insurer under Subtitle C, Title 3.
76	81		Sec. 981.076. REQUIREMENTS FOR DOMESTIC SURPLUS LINES
77	82		DOCUMENTS. (a) In this section, "surplus lines document" has the
78	83		meaning assigned by Section 981.101.
79	84		(b) A surplus lines document issued by a domestic surplus
80	85		lines insurer must include a statement in the form and manner
81	86		provided by commissioner rule.
82	87		Sec. 981.077. REDOMESTICATION. A foreign insurer may
83	88		redomesticate to this state as a domestic surplus lines insurer as
84	89		provided by Chapter 983 if the foreign insurer qualifies under
85	90		Section 981.072.
86	91		SECTION 4. This Act takes effect January 1, 2018.
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