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AN ACT
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relating to the collection of surplus lines insurance premium taxes |
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for insurance placed with a managing underwriter. |
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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) Except as |
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otherwise provided by this section, the [The] surplus lines agent |
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shall collect from the insured the tax imposed by this chapter at |
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the time of delivery of the cover note, certificate of insurance, |
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policy, or other initial confirmation of insurance and the full |
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amount of the gross premium charged by the eligible surplus lines |
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insurer for the insurance. |
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(b) Subject to Subsection (c) and notwithstanding |
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[Notwithstanding] any other law, if a surplus lines agent [that] |
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places an insurance policy with a managing underwriter, as defined |
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by Section 981.002, the managing underwriter shall collect, report, |
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and pay the tax imposed by this chapter. |
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(c) A surplus lines agent and a managing underwriter may |
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enter into an agreement to provide that the surplus lines agent is |
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responsible for filing, reporting, collection, payment, and all |
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other requirements imposed by this chapter and Chapter 981, |
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including the requirement to pay the tax and file the tax report |
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imposed by this chapter. An agreement under this subsection must be |
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in writing and must be entered into at or before the time coverage |
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is bound under the policy. The agreement may apply to multiple |
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policies or all policies between a surplus lines agent and a |
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managing underwriter. |
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SECTION 2. Sections 981.105(a) and (b), Insurance Code, are |
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amended to read as follows: |
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(a) Not later than the 60th day after the later of the |
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effective date or the issue date of new or renewal surplus lines |
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insurance, a surplus lines agent responsible under Section 225.006 |
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for the filing, reporting, collection, payment, and other |
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requirements imposed by Chapter 225 shall file with the stamping |
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office: |
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(1) a copy of the policy issued; or |
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(2) if the policy has not been issued, a copy of the |
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certificate, cover note, or other confirmation of insurance |
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delivered to the insured. |
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(b) The [A] surplus lines agent described by Subsection (a) |
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shall also promptly file with the stamping office: |
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(1) a copy of each substitute certificate, cover note, |
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or other confirmation of insurance delivered to an insured; |
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(2) a copy of each endorsement of an original policy, |
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certificate, cover note, or other confirmation of insurance |
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delivered to an insured; and |
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(3) a memorandum from the agent informing the stamping |
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office of the substance of any change represented by a document |
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described by Subdivision (1) or (2), as compared with the original |
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coverage. |
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SECTION 3. Section 981.213, Insurance Code, is amended to |
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read as follows: |
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Sec. 981.213. FILING CONTRACT WITH STAMPING OFFICE. A |
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surplus lines agent responsible under Section 225.006 for the |
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filing, reporting, collection, payment, and other requirements |
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imposed by Chapter 225 shall report to and file with the stamping |
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office a copy of each surplus lines insurance contract as provided |
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in the stamping office's plan of operation. The department may |
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accept that filing instead of the filings required under Section |
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981.105. |
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SECTION 4. Section 981.215(a), Insurance Code, is amended |
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to read as follows: |
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(a) A surplus lines agent shall maintain a complete record |
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of each surplus lines contract obtained by the agent, including any |
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of the following, if applicable: |
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(1) a copy of the daily report; |
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(2) the amount of the insurance and risks insured |
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against; |
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(3) a brief general description of the property |
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insured and the location of that property; |
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(4) the gross premium charged; |
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(5) the return premium paid; |
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(6) the rate of premium charged on the different items |
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of property; |
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(7) the contract terms, including the effective date; |
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(8) the insured's name and post office address; |
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(9) the insurer's name and home office address; |
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(10) the amount collected from the insured; [and] |
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(11) an agreement under Section 225.006(c); and |
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(12) any other information required by the department. |
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SECTION 5. Section 981.223(a), Insurance Code, is amended |
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to read as follows: |
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(a) A managing underwriter with whom an insurance policy is |
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placed in the manner described by Section 225.006(b) shall maintain |
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appropriate records and make the records available for inspection |
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by the department and 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) an agreement, if any, under Section 225.006(c) |
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that applies to the policy [documentation that the managing
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underwriter has transmitted to the surplus lines agent written
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confirmation of the agent's written agreement to act as the agent
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for the placement of the policy and be responsible for all filing,
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reporting, collection, and payment requirements imposed by this
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chapter and by Chapter 225]. |
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SECTION 6. This Act takes effect January 1, 2014. |
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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. 1405 was passed by the House on April |
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25, 2013, by the following vote: Yeas 136, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1405 was passed by the Senate on May |
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20, 2013, by the following vote: Yeas 31, Nays 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 |