Bill Text: TX SB1491 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to domestic surplus lines insurers; authorizing and imposing a tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2017-05-02 - Referred to Insurance [SB1491 Detail]
Download: Texas-2017-SB1491-Engrossed.html
By: Zaffirini | S.B. No. 1491 |
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relating to domestic surplus lines insurers; authorizing and | ||
imposing a tax. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Subtitle I, Title 6, Insurance | ||
Code, is amended to read as follows: | ||
SUBTITLE I. SURPLUS LINES INSURERS; COMPANIES [ |
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ORGANIZED IN TEXAS | ||
SECTION 2. Section 981.002(4), Insurance Code, is amended | ||
to read as follows: | ||
(4) "Eligible surplus lines insurer" means an insurer | ||
that is not an authorized insurer, but that is eligible under | ||
Subchapter B or B-1, in which surplus lines insurance is placed or | ||
may be placed under this chapter. | ||
SECTION 3. Chapter 981, Insurance Code, is amended by | ||
adding Subchapter B-1 to read as follows: | ||
SUBCHAPTER B-1. DOMESTIC SURPLUS LINES INSURER | ||
Sec. 981.071. DEFINITION. In this subchapter, "domestic | ||
surplus lines insurer" means an insurance company designated as a | ||
domestic surplus lines insurer under Section 981.072. | ||
Sec. 981.072. DESIGNATION AS DOMESTIC SURPLUS LINES | ||
INSURER. (a) A property and casualty insurance company organized | ||
under Chapter 822 that has capital and surplus in an amount | ||
described by Section 981.057 may apply to the department in a form | ||
and manner prescribed by the commissioner for designation as a | ||
domestic surplus lines insurer. | ||
(b) On approval of an application under Subsection (a), the | ||
commissioner shall designate an applicant as a domestic surplus | ||
lines insurer and issue to the applicant a domestic surplus lines | ||
insurer certificate. | ||
(c) Notwithstanding Section 822.101, a domestic surplus | ||
lines insurer is not entitled to a certificate of authority to | ||
engage in the business of insurance in this state in the admitted | ||
market. | ||
Sec. 981.073. APPLICABILITY OF OTHER LAW; CONFLICTS. | ||
(a) Except as provided by Subsection (b), a domestic surplus lines | ||
insurer is subject to: | ||
(1) this chapter; and | ||
(2) all other insurance laws, including Title 4, | ||
applicable to a property and casualty insurance company organized | ||
under Chapter 822. | ||
(b) A domestic surplus lines insurer is not subject to: | ||
(1) Section 38.003; | ||
(2) Chapter 462; | ||
(3) Chapter 463; | ||
(4) Section 981.051; | ||
(5) Section 981.101(b); | ||
(6) Chapter 2301; and | ||
(7) Chapter 2251. | ||
(c) To the extent that this subchapter conflicts with any | ||
other insurance law, this subchapter controls. | ||
Sec. 981.074. AUTHORIZED BUSINESS. (a) A domestic surplus | ||
lines insurer may only insure a risk in this state if: | ||
(1) the insurance is procured as eligible surplus | ||
lines insurance under this chapter; and | ||
(2) the insurance is a kind of insurance the insurer is | ||
authorized to write under the insurer's articles of incorporation. | ||
(b) A domestic surplus lines insurer may not issue: | ||
(1) a policy in the admitted market; or | ||
(2) a policy to satisfy the financial responsibility | ||
requirements of Chapter 601, Transportation Code, insurance | ||
requirements of Chapter 406, Labor Code, or requirements of any | ||
other law of this state mandating insurance coverage by an | ||
insurance company authorized to engage in the business of insurance | ||
in this state. | ||
Sec. 981.075. TAXES IMPOSED. (a) The premium for a | ||
surplus lines policy written under this subchapter is subject to | ||
the premium tax, if applicable, imposed under Chapter 225. | ||
(b) A domestic surplus lines insurer is subject to an | ||
applicable maintenance tax as if the domestic surplus lines insurer | ||
were an authorized insurer under Subtitle C, Title 3. | ||
Sec. 981.076. REQUIREMENTS FOR DOMESTIC SURPLUS LINES | ||
DOCUMENTS. (a) In this section, "surplus lines document" has the | ||
meaning assigned by Section 981.101. | ||
(b) A surplus lines document issued by a domestic surplus | ||
lines insurer must include a statement in the form and manner | ||
provided by commissioner rule. | ||
Sec. 981.077. REDOMESTICATION. A foreign insurer may | ||
redomesticate to this state as a domestic surplus lines insurer as | ||
provided by Chapter 983 if the foreign insurer qualifies under | ||
Section 981.072. | ||
SECTION 4. This Act takes effect January 1, 2018. |