Broker FAQs

Q. What is a non-premium batch?
A. A submission that contains only items that have no premium being reported, such as a name change, date change, policy number change, or insurer correction. These batches must be submitted using the Policy List Form and must include the named insured and policy items.

Q. Do I have to file insurance binders with SLTX?
A. No. If the policy is issued within the 60-day filing requirement, the binder does not have to be filed. If the binder is filed, it must meet the same requirements as a policy and must be replaced when the policy is issued.

Q. How do I replace a binder with a policy?
A. If the premium has not changed, file the policy in a non-premium batch. Indicate the original binder number if it is different from the policy number, and note any changes in the insurer name and/or percentage of participation. Include any changes in the effective or expiration dates.

If the premium has changed, enter the policy as a policy replacing binder. This will prompt you to re-enter the information. The binder will be reversed and the policy will be filed in its place.

Q. How do I file binder extensions?
A. File extensions in a non-premium batch. Refer to the original binder number and note the original effective date of coverage.

Q. What is a Batch Edit Report?
A. A computer-generated list of all items processed in a batch, along with the date in which they were processed. It also includes any errors that were noted in the batch.

Q. Does SLTX acknowledge the filings I make?
A. Yes. You will receive the following:

  • Batch Edit Report listing all transactions that were received
  • Monthly report listing all transactions processed during the month
  • Monthly invoice listing the applicable stamping fee due to SLTX
  • Annual report summarizing all premium and surplus lines tax processed by SLTX during the calendar year
Q. Does the Guaranty Fund Nonparticipation Notice have to be located directly on the declarations page?
A. No. Section 981.101(b) of the Texas Insurance Code only requires that the notice be contained within the policy, but the correct tax rate (4.85%) must be shown.

Q. What do I do if a policy does not have an issue date?
A. A date stamp showing when the policy was received in your office will be accepted. You may also provide the date that a policy or binder was received via electronic transmission.

Q. How do I file a date extension?
A. Date extensions are processed as renewals to verify eligibility of the insurers and accuracy of surplus lines tax and stamping fee amounts.

Q. How do I void or replace an endorsement?
A. You must reverse the previously submitted endorsement on a Policy List Form and list the replacement, if applicable. Submit supporting documentation for all included items.

Q. May I issue a renewal certificate instead of a renewal policy?
A. Yes. A renewal certificate allows a renewal to occur using the same information from a previous policy. All insurers must be eligible as of the effective date of the extension.

Q. How do I file policies with multi-state or tax-exempt exposure?
A. For policies effective after 07/21/2011, only the home state of the insured may require premium tax payment. If Texas is the home state, all taxable premium is reported and taxed as Texas premium. The premium must be allocated using the Non-Texas/Exempt Premium Allocation Form, which is submitted in addition to the Policy List Form. For those filing electronically, individual premium amounts per state must be entered.

For those filing electronically, individual premium amounts per state must be entered.

Q. What do I do if a policy is paid on an installment basis?
A. If there is an installment schedule attached to the policy, you may file a copy of it each time an installment is billed. If there is no schedule on the policy, you may send a copy of the invoice, which includes the correct policy number, named insured, and installment dates. This is the only time an invoice will be accepted as documentation.

Q. What do I do if a policy is written through Underwriters at Lloyd’s of London?
A. You must provide SLTX with a list of the syndicates involved and their percentage of participation. Each syndicate must be identified by a syndicate number, and this information must be included on binders, cover notes, renewal certificates, and date extensions.

Q. How do I reconcile my monthly reports if I file electronically and by mail?
A. All transactions are included on the monthly detail reports, with notations of which policies have been filed electronically.

Q. What is a Duplicate Policy Report?
A. A report that lists possible duplications in policy filings. An broker must verify that the premium is duplicated. If so, the duplicate policy must be reversed.

Q. What do I do if my agency buys a book of business or merges with another agency?
A. The first time an endorsement, cancellation, or audit is filed for the acquired business, it should be filed separately from your agency. The items must be submitted on a Policy List Form with a broker of record letter, which acknowledges that the policies were originally written by a different broker and that you are now the broker of record. Include the original broker’s name and surplus lines license number on the letter.

This letter must be printed on agency letterhead and signed by a licensee.

Q. What do I do if my agency employs a third-party filer?
A. Each agency should disclose any relationship with a third-party filer to SLTX, and must provide SLTX with an authorization or appointment of the third-party filer allowing the entity to make filings and/or communicate with SLTX on the agency’s behalf. Each user employed by the third-party filer must undergo registration and training through the Online Filing System before he or she is able to file electronically with SLTX.

Q. What do I do if the policy holder is exempt from sales tax?
A. Many people confuse sales tax exemptions with exemptions from surplus lines tax. While they may be exempt from sales tax, your client/the insured is not/may not be exempt from the surplus lines tax; in fact, very few are. Surplus lines policies are exempt from taxation only if the exposures cover risks that are allocated to federal waters, international waters, or are under the jurisdiction of a foreign government (TIC 225.004). Also, Federally Chartered Credit Unions are preempted from surplus lines taxes. There are also specific rules pertaining to tribal lands. Please see the Surplus Lines Tax Exemptions/Preemptions brochure from the Comptroller’s Office. Please direct any tax related questions to the Comptroller’s Office.

Q. Which "occupational" policies require a separate disclosure relating to an employer not maintaining workers' compensation insurance?

A. Per 5 TIC 564, occupational insurance policy delivered, issued for delivery, or renewed on or after January 1, 2022, are required to include a disclosure statement in 10-point boldface type on the first page of the policy and on the first page of all materials used in advertising or marketing the occupational policy to an employer that elects not to maintain workers ’ compensation insurance coverage under Chapter 406, Labor Code. 5 TIC 564 Section 564.004 defines “occupational policy” as:

(1) an individual or group accident or health insurance policy that explicitly provides coverage or benefits for an employer or the employer’s employees for an employee’s occupational bodily injury, disease, or death;

(2) an employer’s insurance policy that explicitly provides liability coverage to an employer that elects not to maintain workers ’ compensation insurance coverage under Chapter 406, Labor Code, for an employee’s occupational bodily injury, disease, or death in:

(A) a general liability insurance policy;

(B) a commercial multiple peril insurance policy; or

(C) any other type of insurance policy designated by the department as intended to provide liability coverage to an employer that elects not to maintain workers ’ compensation insurance coverage under Chapter 406, Labor Code, for an employee’s occupational bodily injury, disease, or death;

(3) an accident, health, or liability insurance policy that does not expressly include coverage for occupational injuries, disease, or death, but is marketed or sold to or through an employer as an alternative to coverage for benefits or liability provided by a workers ’ compensation insurance policy; or

(4) a policy that includes occupational accident and health and liability coverage in the same policy.