Bill Text: TX HB3410 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
82R8308 TJS-F | ||
By: Smithee | H.B. No. 3410 |
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relating to the underwriting authority of certain surplus lines | ||
insurance agents and to the collection of surplus lines insurance | ||
premium taxes in certain circumstances. | ||
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 who | ||
obtains insurance from another surplus lines agent exercising | ||
underwriting authority for an eligible surplus lines insurer under | ||
Section 981.209 may by written contract agree to collect, report, | ||
and pay the tax imposed by this chapter. | ||
(c) A surplus lines agent who enters into a contract | ||
described by Subsection (b) shall keep a copy of the contract and | ||
make the contract available for inspection by the comptroller. | ||
(d) A surplus lines agent who contracts to collect, report, | ||
and pay the tax in the manner described by Subsection (b) shall: | ||
(1) maintain appropriate records, including a record | ||
of each surplus lines contract with respect to which duties under | ||
the contract have been performed; and | ||
(2) not later than the 30th day after the date on which | ||
the tax is paid to the comptroller, provide the surplus lines agent | ||
exercising underwriting authority: | ||
(A) the name and address of the insured; | ||
(B) the policy number and policy period; | ||
(C) the name of the eligible surplus lines | ||
insurer; | ||
(D) the gross premium charged for the insurance; | ||
(E) the amount of the tax collected; and | ||
(F) the date on which the tax was paid to the | ||
comptroller. | ||
SECTION 2. Subchapter E, Chapter 981, Insurance Code, is | ||
amended by adding Section 981.209 to read as follows: | ||
Sec. 981.209. UNDERWRITING AUTHORITY ON BEHALF OF OTHER | ||
AGENT. (a) A surplus lines agent may exercise underwriting | ||
authority for an eligible surplus lines insurer, including | ||
exercising the authority to rate and accept risks, bind coverage, | ||
issue formal evidence of coverage, and cancel coverage, only under | ||
a current written agreement between the underwriting surplus lines | ||
agent and the eligible surplus lines insurer. The agreement must: | ||
(1) identify the insurer; | ||
(2) describe the scope of the underwriting authority | ||
granted; and | ||
(3) reserve the final underwriting review authority to | ||
the insurer. | ||
(b) A surplus lines agent or eligible surplus lines insurer | ||
who enters into an agreement under Subsection (a) shall keep a copy | ||
of the agreement and make the agreement available for review by the | ||
department. | ||
SECTION 3. This Act takes effect September 1, 2011. |