By: Carona S.B. No. 697
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the qualifications of certain nonresident individuals
  to hold a surplus lines agent license.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 981.203, Insurance Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a)(1)(B), an individual
  is not required to obtain a general property and casualty or a
  managing general agent license to hold a surplus lines agent
  license if:
               (1)  the home state of each insured is Texas;
               (2)  the individual is a nonresident of this state;
               (3)  the individual is licensed as a surplus lines
  agent in the individual's state of residence;
               (4)  the individual does not hold a managing general
  agent license in this state;
               (5)  the individual is not required by the individual's
  state of residence to hold a general property and casualty license
  to become licensed as a surplus lines agent;
               (6)  the individual has provided information
  acceptable to the commissioner that the individual's state of
  residence does not require a property and casualty agent license
  for a surplus lines agent license;
               (7)  the individual's state of residence does not
  require a surplus lines agent to search for the availability of
  insurance in the individual's state of residence before the
  insurance is placed through a surplus lines agent;
               (8)  the individual's state of residence allows a
  licensed general property and casualty agent to search for the
  availability of insurance in the individual's state of residence;
               (9)  the individual has a professional relationship
  with, and each transaction is conducted through, a person who:
                     (A)  is a licensed general property and casualty
  agent in this state or in the state of each transaction; and
                     (B)  searches for the availability of insurance in
  this state before the insurance is placed through a surplus lines
  agent; and
               (10)  each transaction complies with the laws of the
  state in which it occurs.
         SECTION 2.  The change in law made by this Act applies to a
  license application submitted on or after the effective date of
  this Act. A license application submitted before the effective
  date of this Act is governed by the law in effect immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         SECTION 3.  This Act takes effect September 1, 2013.