| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the collection of surplus lines insurance premium taxes |
|
|
for insurance placed with a managing underwriter. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 225.006, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 225.006. COLLECTION OF TAX BY AGENT. (a) Except as |
|
|
otherwise provided by this section, the [The] surplus lines agent |
|
|
shall collect from the insured the tax imposed by this chapter at |
|
|
the time of delivery of the cover note, certificate of insurance, |
|
|
policy, or other initial confirmation of insurance and the full |
|
|
amount of the gross premium charged by the eligible surplus lines |
|
|
insurer for the insurance. |
|
|
(b) Subject to Subsection (c) and notwithstanding |
|
|
[Notwithstanding] any other law, if a surplus lines agent [that] |
|
|
places an insurance policy with a managing underwriter, as defined |
|
|
by Section 981.002, the managing underwriter shall collect, report, |
|
|
and pay the tax imposed by this chapter. |
|
|
(c) A surplus lines agent and a managing underwriter may |
|
|
enter into an agreement to provide that the surplus lines agent |
|
|
shall collect, report, and pay the tax imposed by this chapter. An |
|
|
agreement under this subsection must be in writing and must be |
|
|
entered into at or before the time coverage is bound under the |
|
|
policy. The agreement may apply to multiple policies or all |
|
|
policies between a surplus lines agent and a managing underwriter. |
|
|
SECTION 2. Section 981.215(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) A surplus lines agent shall maintain a complete record |
|
|
of each surplus lines contract obtained by the agent, including any |
|
|
of the following, if applicable: |
|
|
(1) a copy of the daily report; |
|
|
(2) the amount of the insurance and risks insured |
|
|
against; |
|
|
(3) a brief general description of the property |
|
|
insured and the location of that property; |
|
|
(4) the gross premium charged; |
|
|
(5) the return premium paid; |
|
|
(6) the rate of premium charged on the different items |
|
|
of property; |
|
|
(7) the contract terms, including the effective date; |
|
|
(8) the insured's name and post office address; |
|
|
(9) the insurer's name and home office address; |
|
|
(10) the amount collected from the insured; [and] |
|
|
(11) an agreement under Section 225.006(c); and |
|
|
(12) any other information required by the department. |
|
|
SECTION 3. Section 981.223(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) A managing underwriter with whom an insurance policy is |
|
|
placed in the manner described by Section 225.006(b) shall maintain |
|
|
appropriate records and make the records available for inspection |
|
|
by the department and the comptroller, including records of: |
|
|
(1) the name and address of the insured; |
|
|
(2) the policy number and policy period; |
|
|
(3) the name of the eligible surplus lines insurer; |
|
|
(4) the gross premium charged for the insurance; |
|
|
(5) the name of the surplus lines agent who placed the |
|
|
policy with the managing underwriter; |
|
|
(6) the license number of the surplus lines agent who |
|
|
placed the policy with the managing underwriter; and |
|
|
(7) an agreement, if any, under Section 225.006(c) |
|
|
that applies to the policy [documentation that the managing
|
|
|
underwriter has transmitted to the surplus lines agent written
|
|
|
confirmation of the agent's written agreement to act as the agent
|
|
|
for the placement of the policy and be responsible for all filing,
|
|
|
reporting, collection, and payment requirements imposed by this
|
|
|
chapter and by Chapter 225]. |
|
|
SECTION 4. This Act takes effect September 1, 2013. |