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AN ACT
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relating to timely filing of a surplus lines policy; providing |
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penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 981.105, Insurance Code, is amended by |
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adding Subsections (c) through (i) to read as follows: |
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(c) The commissioner may assess a fee against an agent who |
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files a surplus lines policy after the filing deadline specified by |
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Subsection (a). |
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(d) For an agent who files a surplus lines policy on or |
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before the 180th day after the effective date or issue date |
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described by Subsection (a), the amount of the fee is: |
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(1) $50 for each late-filed policy if, in the calendar |
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year immediately preceding the year in which the policy is |
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late-filed, the agent has filed not more than five percent of the |
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policies the agent was required to file after the filing deadline |
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specified by Subsection (a); or |
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(2) $100 for each late-filed policy if, in the |
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calendar year immediately preceding the year in which the policy is |
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late-filed, the agent has filed more than five percent of the |
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policies the agent was required to file after the filing deadline |
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specified by Subsection (a). |
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(e) For an agent who files a surplus lines policy after the |
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180th day but before the 365th day after the effective date or issue |
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date described by Subsection (a) and who, during the immediately |
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preceding calendar year, filed not more than two percent of the |
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policies the agent was required to file after the filing deadline |
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specified by Subsection (a), the amount of the fee for the |
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late-filed policy is $200. |
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(f) Notwithstanding any other provision of this section, |
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for an agent who not later than January 1, 2012, files a late-filed |
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policy with an effective date before January 1, 2010, that, at the |
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time the policy is filed, has not been listed in a previous |
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late-filed policy report of the stamping office, the amount of the |
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fee is $50 for each late-filed policy. |
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(g) The assessment, imposition, or payment of a fee under |
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this section does not establish a violation for purposes of Section |
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81.004, 82.051, 82.052, 82.054, 82.056, or 84.022(b)(3). |
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(h) An agent who files a surplus lines policy after the |
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filing deadline specified by Subsection (a) is subject to Chapters |
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81, 82, and 84 only if the agent: |
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(1) fails to timely pay a fee assessed under this |
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section; |
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(2) files a surplus lines policy on or after the 365th |
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day after the effective date or issue date; or |
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(3) files a surplus lines policy after the 180th day |
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but before the 365th day of the effective date or issue date, and in |
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the calendar year immediately preceding the year in which the |
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policy is late-filed, filed more than two percent of the policies |
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the agent was required to file after the filing deadline specified |
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in Subsection (a). |
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(i) The department shall provide notice to each agent of the |
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amount of fees assessed under this section during each calendar |
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year not later than June 15 of the year immediately following the |
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year for which fees are assessed, and each agent shall pay the |
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assessed fees not later than the 30th day after the date of the |
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notice. |
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SECTION 2. (a) Except as provided by Subsection (b) of |
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this section, the changes in law made by this Act apply only to a |
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surplus lines policy filed on or after the effective date of this |
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Act. A surplus lines policy filed before the effective date of this |
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Act is governed by the law in effect immediately before that date, |
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and that law is continued in effect for that purpose. |
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(b) Section 981.105, Insurance Code, as amended by this Act, |
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applies to an action to enforce Section 981.105, Insurance Code, |
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that is: |
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(1) pending on the effective date of this Act; |
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(2) brought on or after the effective date of this Act |
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against a surplus lines agent for policies filed after the filing |
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deadline prescribed by Subsection (a), Section 981.105, Insurance |
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Code, and filed during the 2010 calendar year; or |
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(3) brought on or after the effective date of this Act |
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against a surplus lines agent for policies filed after the filing |
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deadline prescribed by Subsection (a), Section 981.105, Insurance |
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Code, and filed during the 2011 calendar year. |
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(c) Not later than December 1, 2011, the Texas Department of |
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Insurance shall provide notice to each surplus lines agent to which |
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Subdivisions (1) and (2) of Subsection (b) of this section apply of |
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the amount of fees assessed. The surplus lines agent shall pay the |
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fee not later than the 30th day after the date of the notice. |
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(d) The notice and payment provisions described by |
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Subsection (i), Section 981.105, Insurance Code, as added by this |
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Act, apply to policies filed during or after the 2011 calendar year. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1806 passed the Senate on |
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May 6, 2011, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1806 passed the House on |
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May 13, 2011, by the following vote: Yeas 142, Nays 2, one |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |