Bill Text: TX HB3799 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to timely filing of a surplus lines policy; providing penalties.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-05-13 - Laid on the table subject to call [HB3799 Detail]
Download: Texas-2011-HB3799-Comm_Sub.html
| 82R24650 TJS-F | |||
| By: Miller of Erath | H.B. No. 3799 | ||
| Substitute the following for H.B. No. 3799: | |||
| By: Eiland | C.S.H.B. No. 3799 | ||
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| relating to timely filing of a surplus lines policy; providing | ||
| penalties. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 981.105, Insurance Code, is amended by | ||
| adding Subsections (c) through (i) to read as follows: | ||
| (c) The commissioner may assess a fee against an agent who | ||
| files a surplus lines policy after the filing deadline specified by | ||
| Subsection (a). | ||
| (d) For an agent who files a surplus lines policy on or | ||
| before the 180th day after the effective date or issue date | ||
| described by Subsection (a), the amount of the fee is: | ||
| (1) $50 for each late-filed policy if, in the calendar | ||
| year immediately preceding the year in which the policy is | ||
| late-filed, the agent has filed not more than five percent of the | ||
| policies the agent was required to file after the filing deadline | ||
| specified by Subsection (a); or | ||
| (2) $100 for each late-filed policy if, in the | ||
| calendar year immediately preceding the year in which the policy is | ||
| late-filed, the agent has filed more than five percent of the | ||
| policies the agent was required to file after the filing deadline | ||
| specified by Subsection (a). | ||
| (e) For an agent who files a surplus lines policy after the | ||
| 180th day but before the 365th day after the effective date or issue | ||
| date described by Subsection (a) and who, during the immediately | ||
| preceding calendar year, filed not more than two percent of the | ||
| policies the agent was required to file after the filing deadline | ||
| specified by Subsection (a), the amount of the fee for the | ||
| late-filed policy is $200. | ||
| (f) Notwithstanding any other provision of this section, | ||
| for an agent who not later than January 1, 2012, files a late-filed | ||
| policy with an effective date before January 1, 2010, that, at the | ||
| time the policy is filed, has not been listed in a previous | ||
| late-filed policy report of the stamping office, the amount of the | ||
| fee is $50 for each late-filed policy. | ||
| (g) The assessment, imposition, or payment of a fee under | ||
| this section does not establish a violation for purposes of Section | ||
| 81.004, 82.051, 82.052, 82.054, 82.056, or 84.022(b)(3). | ||
| (h) An agent who files a surplus lines policy after the | ||
| filing deadline specified by Subsection (a) is subject to Chapters | ||
| 81, 82, and 84 only if the agent: | ||
| (1) fails to timely pay a fee assessed under this | ||
| section; | ||
| (2) files a surplus lines policy on or after the 365th | ||
| day after the effective date or issue date; or | ||
| (3) files a surplus lines policy after the 180th day | ||
| but before the 365th day of the effective date or issue date, and in | ||
| the calendar year immediately preceding the year in which the | ||
| policy is late-filed, filed more than two percent of the policies | ||
| the agent was required to file after the filing deadline specified | ||
| in Subsection (a). | ||
| (i) The department shall provide notice to each agent of the | ||
| amount of fees assessed under this section during each calendar | ||
| year not later than June 15 of the year immediately following the | ||
| year for which fees are assessed, and each agent shall pay the | ||
| assessed fees not later than the 30th day after the date of the | ||
| notice. | ||
| SECTION 2. (a) Except as provided by Subsection (b) of this | ||
| section, the changes in law made by this Act apply only to a surplus | ||
| lines policy filed on or after the effective date of this Act. A | ||
| surplus lines policy filed before the effective date of this Act is | ||
| governed by the law in effect immediately before that date, and that | ||
| law is continued in effect for that purpose. | ||
| (b) Section 981.105, Insurance Code, as amended by this Act, | ||
| applies to an action to enforce Section 981.105, Insurance Code, | ||
| that is pending on the effective date of this Act, with respect to | ||
| the assessment of fees against a surplus lines agent for policies | ||
| filed after the filing deadline prescribed by Section 981.105(a), | ||
| Insurance Code, during the 2010 calendar year. | ||
| (c) Not later than December 1, 2011, the Texas Department of | ||
| Insurance shall provide notice to each surplus lines agent to which | ||
| Subsection (b) of this section applies of the amount of fees | ||
| assessed. The surplus lines agent shall pay the fee not later than | ||
| the 30th day after the date of the notice. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2011. | ||
