Bill Text: TX SB1806 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to timely filing of a surplus lines policy; providing penalties.

Sponsorship: Bipartisan Bill

Status: (Passed) 2011-05-28 - Effective immediately [SB1806 Detail]

Download: Texas-2011-SB1806-Enrolled.html

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S.B. No. 1806

AN ACT
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