Bill Text: TX SB1806 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to timely filing of a surplus lines policy; providing penalties.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-28 - Effective immediately [SB1806 Detail]
Download: Texas-2011-SB1806-Enrolled.html
S.B. No. 1806 |
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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: | ||
(1) pending on the effective date of this Act; | ||
(2) brought on or after the effective date of this Act | ||
against a surplus lines agent for policies filed after the filing | ||
deadline prescribed by Subsection (a), Section 981.105, Insurance | ||
Code, and filed during the 2010 calendar year; or | ||
(3) brought on or after the effective date of this Act | ||
against a surplus lines agent for policies filed after the filing | ||
deadline prescribed by Subsection (a), Section 981.105, Insurance | ||
Code, and filed during the 2011 calendar year. | ||
(c) Not later than December 1, 2011, the Texas Department of | ||
Insurance shall provide notice to each surplus lines agent to which | ||
Subdivisions (1) and (2) of Subsection (b) of this section apply 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. | ||
(d) The notice and payment provisions described by | ||
Subsection (i), Section 981.105, Insurance Code, as added by this | ||
Act, apply to policies filed during or after the 2011 calendar year. | ||
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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1806 passed the Senate on | ||
May 6, 2011, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1806 passed the House on | ||
May 13, 2011, by the following vote: Yeas 142, Nays 2, one | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |