Bill Text: TX HB3410 | 2011-2012 | 82nd Legislature | Enrolled

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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.

Sponsorship: Partisan Bill (Republican 3)

Status: (Passed) 2011-06-17 - Effective on 1/1/12 [HB3410 Detail]

Download: Texas-2011-HB3410-Enrolled.html

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H.B. No. 3410

AN ACT
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