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AN ACT
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relating to the managing underwriters for surplus lines insurance |
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transactions and to the collection of surplus lines insurance |
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premium taxes for those transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 225.006, Insurance Code, is amended to |
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read as follows: |
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Sec. 225.006. COLLECTION OF TAX BY AGENT. (a) The surplus |
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lines agent shall collect from the insured the tax imposed by this |
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chapter at the time of delivery of the cover note, certificate of |
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insurance, policy, or other initial confirmation of insurance and |
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the full amount of the gross premium charged by the eligible surplus |
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lines insurer for the insurance. |
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(b) Notwithstanding any other law, a surplus lines agent |
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that places an insurance policy with a managing underwriter, as |
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defined by Section 981.002, shall collect, report, and pay the tax |
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imposed by this chapter. |
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SECTION 2. Section 981.002, Insurance Code, is amended by |
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adding Subdivision (1-a) and amending Subdivision (4) to read as |
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follows: |
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(1-a) "Managing underwriter" means a surplus lines |
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agent or agency that exercises, pursuant to a written agreement |
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with an eligible surplus lines insurer, underwriting authority for |
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the eligible surplus lines insurer and that derives the agent or |
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agency's business from a surplus lines agent. |
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(4) "Surplus lines insurance" means insurance |
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coverage: |
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(A) for a subject that is resident, located, or |
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to be performed in this state; and |
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(B) that may be placed, in accordance with this |
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chapter, with an eligible surplus lines insurer or the insurer's |
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managing underwriter. |
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SECTION 3. Subchapter E, Chapter 981, Insurance Code, is |
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amended by adding Section 981.223 to read as follows: |
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Sec. 981.223. MANAGING UNDERWRITERS. (a) A managing |
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underwriter with whom an insurance policy is placed in the manner |
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described by Section 225.006(b) shall maintain appropriate records |
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and make the records available for inspection by the department and |
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the comptroller, including records of: |
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(1) the name and address of the insured; |
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(2) the policy number and policy period; |
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(3) the name of the eligible surplus lines insurer; |
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(4) the gross premium charged for the insurance; |
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(5) the name of the surplus lines agent who placed the |
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policy with the managing underwriter; |
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(6) the license number of the surplus lines agent who |
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placed the policy with the managing underwriter; and |
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(7) documentation that the managing underwriter has |
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transmitted to the surplus lines agent written confirmation of the |
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agent's written agreement to act as the agent for the placement of |
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the policy and be responsible for all filing, reporting, |
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collection, and payment requirements imposed by this chapter and by |
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Chapter 225. |
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(b) A managing underwriter who acts as a surplus lines agent |
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for a policy issued by an eligible surplus lines insurer shall |
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maintain appropriate records and make the records available for |
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inspection by the department and the comptroller, including the |
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information listed in Subdivisions (a)(1) through (6). The records |
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must reflect the name and license number of the managing |
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underwriter as the surplus lines agent placing the policy. |
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(c) A managing underwriter may hold both a surplus lines |
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agent license and a managing general agent license. |
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SECTION 4. This Act takes effect January 1, 2012. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3410 was passed by the House on May |
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13, 2011, by the following vote: Yeas 143, Nays 1, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3410 on May 23, 2011, by the following vote: Yeas 143, Nays 0, |
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3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3410 was passed by the Senate, with |
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amendments, on May 20, 2011, by the following vote: Yeas 30, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |