Bill Text: TX HB3410 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the managing underwriters for surplus lines insurance transactions and to the collection of surplus lines insurance premium taxes for those transactions.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-06-17 - Effective on 1/1/12 [HB3410 Detail]
Download: Texas-2011-HB3410-Enrolled.html
H.B. No. 3410 |
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relating to the managing underwriters for surplus lines insurance | ||
transactions and to the collection of surplus lines insurance | ||
premium taxes for those transactions. | ||
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) 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) Notwithstanding any other law, a surplus lines agent | ||
that places an insurance policy with a managing underwriter, as | ||
defined by Section 981.002, shall collect, report, and pay the tax | ||
imposed by this chapter. | ||
SECTION 2. Section 981.002, Insurance Code, is amended by | ||
adding Subdivision (1-a) and amending Subdivision (4) to read as | ||
follows: | ||
(1-a) "Managing underwriter" means a surplus lines | ||
agent or agency that exercises, pursuant to a written agreement | ||
with an eligible surplus lines insurer, underwriting authority for | ||
the eligible surplus lines insurer and that derives the agent or | ||
agency's business from a surplus lines agent. | ||
(4) "Surplus lines insurance" means insurance | ||
coverage: | ||
(A) for a subject that is resident, located, or | ||
to be performed in this state; and | ||
(B) that may be placed, in accordance with this | ||
chapter, with an eligible surplus lines insurer or the insurer's | ||
managing underwriter. | ||
SECTION 3. Subchapter E, Chapter 981, Insurance Code, is | ||
amended by adding Section 981.223 to read as follows: | ||
Sec. 981.223. MANAGING UNDERWRITERS. (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) 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. | ||
(b) A managing underwriter who acts as a surplus lines agent | ||
for a policy issued by an eligible surplus lines insurer shall | ||
maintain appropriate records and make the records available for | ||
inspection by the department and the comptroller, including the | ||
information listed in Subdivisions (a)(1) through (6). The records | ||
must reflect the name and license number of the managing | ||
underwriter as the surplus lines agent placing the policy. | ||
(c) A managing underwriter may hold both a surplus lines | ||
agent license and a managing general agent license. | ||
SECTION 4. This Act takes effect January 1, 2012. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3410 was passed by the House on May | ||
13, 2011, by the following vote: Yeas 143, Nays 1, 1 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 3410 on May 23, 2011, by the following vote: Yeas 143, Nays 0, | ||
3 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3410 was passed by the Senate, with | ||
amendments, on May 20, 2011, by the following vote: Yeas 30, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |