Procedural Updates

TDI calls for data collection for the Texas winter weather event

The Texas Department of Insurance (TDI) has issued a data call to all insurers, including surplus lines insurers and insurers licensed to write property and casualty insurance in Texas, for the winter weather event that took place between February 11 – 19 throughout the state of Texas. Please review the Commissioner’s Bulletin # B-0009-21 directly for data call instructions and related information.

A list of the surplus lines companies which are required to respond to the data call can be found directly on TDI’s website relating to the data collection bulletin.

Companies must send all reports to TDI’s statistical agent, Insurance Services Office, Inc. (ISO). ISO needs reporting insurers that have not already registered with ISO to complete the attached form on Bulletin #B-0009-21 to set up the appropriate credentials for statistical reporting. Please return the form to ISO at TXCatStatAgent@verisk.com. Companies that registered with ISO in response to Bulletin B-0040-20 do NOT need to register again. Any questions about registering with ISO should be sent to TXCatStatAgent@verisk.com. Once your registration is processed, ISO will provide you with your credentials and relevant reporting instructions.

Property insurers should contact ISO even if the company does not have any claims to report for the winter weather event. These companies will still be required to respond to TDI’s bulletin as provided in the statistical plan.

The first report for data as of February 28, 2021, is due March 31, 2021. Subsequent reports are due monthly, at the end of each month. For any questions about how to submit data to ISO, please contact TXCatStatAgent@verisk.com.

2020 Annual Late Filing Report to Run March 12

SLTX’s annual late filing report, which lists all Texas surplus lines policies that were not timely filed in 2020, will be generated on March 12, 2021. Policies are considered late if they are not filed with SLTX within 60 days of issuance or the effective date, whichever is later.

Under the Texas Administrative Code, SLTX must submit the annual late filing report to the Texas Department of Insurance (TDI) no later than the first business day in April of each year for the previous calendar year. At this time, no additional changes can be made to the report. However, if a late filing adjustment has been approved and TDI has previously determined a policy that was originally included on a monthly late filing report should be considered timely filed, it will not be included on the annual late filing report.

Beginning March 12, 2021, agents and brokers who file electronically and have submitted an untimely filed policy in 2020 will be able to access an electronic copy of the report as a courtesy and pre-notification. The report can be found in SLTX’s online filing system by accessing the “Reporting” tab on the left navigation menu. Select “EOM/EOY Reports” from the “Listings” drop-down menu at the top of the screen. Choose the “Late Filing Reports” radio button, and the annual late filing report will be displayed as the most recent report listed, if available.

SLTX will send the official 2020 Annual Late Filing Report by certified mail to all agents and brokers included on the report. Those who are not included on the report will not see it listed in the online filing system and will not receive a letter from SLTX by certified mail.

The report will include a list of all policies that were not timely filed, as well as the number of days late for each, the total percentage of late policies for the year, a calculation of total fees due, and the number of policies sent to enforcement, if any. Assessments and enforcement actions are determined by statute and all fees should be submitted directly to TDI. The TDI Late Filers Fee Payment Form will be included within the certified mailing.

SMART Release Updates January 2021

Since the last significant release in October 2020, work has continued to be focused on features for the Reporting module. This will allow SLTX to transition away from existing legacy applications and mechanisms that perform month-end calculations, report generation and viewing capability, and accounts receivable processes. Additionally, as part of this work, a redesign of various SLTX reports has been completed. The first phase of the Reporting module has concluded and as a result, Month End Reports will now be created with the new method and format. With the January 2021 Month End, reports will be mailed out to all paper filing agents and agencies and will reflect the new format. This includes the Monthly Invoice, Detail Policy Activity Report, Policy Transaction Activity Report, and when appropriate, the Outstanding Ineligible Report, and Duplicate Policy Report.  You may view full-color sample report layouts by clicking on each report name above.  Online filers will still receive their reports via the existing Electronic Filing System (EFS) portal in the original format.

Additionally, the January 2021 release includes features which will allow SLTX to capture and view the National Producer Number (NPN) as provided by TDI within their monthly license data dump, relate to work assignment and distribution of Internal Filings (policies mailed to SLTX for processing), and Internal Filings of policies and/or binders.

By the February 2021 Month End, phase two of the Reporting module deliverables will be on target to include a Report Landing page for all External Filers through the SMART application, which will allow those users to directly obtain their 2021 monthly reports. Additionally, phase two will include the Monthly Late Filing Report, Batch Edit Report (for paper filers), Policy Audit Results, and various other statutorily required reports.

As a reminder, SLTX has already released portions of its new online filing system, SMART. This includes filing features that are specific to automated or “programmatic” filers as these filing methods make up the largest majority of the transactions filed with SLTX. Beta testing is ongoing and feedback by automated filing broker users is strongly encouraged as broker testing is the primary mechanism to ensure data related scenarios are handled effectively and efficiently. If you, as an automated filer, have not requested the updated Technical Reference and User Guides or are ready to resume beta testing, please contact the SLTX Tech Support team by email.

Please note that current EFS processes and procedures will continue to be available and both systems will remain functional and work concurrently until the entire suite of features in SMART are fully delivered.

With each new release or significant deployment, additional notifications will be sent to existing users of SLTX’s Electronic Filing System (EFS). These notifications may also be found directly on our website under News>Procedural Updates.

Please contact the SLTX Tech Support team by email or phone at (512) 531-1880 or (800) 681-5848 with any questions.

Late-Filed Policy Corrections Must be Made by February 15, 2021

SLTX will accept corrections or adjustment forms for late-filed policies included on November or December 2020 monthly late filers reports until Monday, February 15, 2021. After this date, no additional modifications can be made to the annual late filers report.

Under Texas statute, SLTX is required to file an annual late filers report with the Texas Department of Insurance (TDI) no later than the first business day of April. The report lists all surplus lines insurance policies that were filed after the filing deadline during the previous calendar year. A policy appears late if it is filed more than 60 days after the effective date or issue date of the policy, whichever is later.

The Texas Administrative Code rule which took effect December 30, 2018, requires surplus lines agents to notify SLTX within 90 days or by February 15 of the following year, whichever is earlier, if a policy that they believe to be timely filed appears on a monthly late filers report. After that time has passed, the agent waives the right to later dispute the timeliness of the filing. Because of this timeline, only policies included on the November or December 2020 monthly late filers report may be disputed.

For information on retrieving monthly reports through the online filing system, please view the SLTX Obtaining Late Filing Reports – How to Guide. Then, make corrections or complete and submit the Monthly Late Filing – Request for Adjustment form, which can be found on the SLTX website. Corrections must be received by Monday, February 15, 2021.

Texas Insurance Code Sec. 981.105 also details the regulatory remedies that the Commissioner of Insurance may accept for late-filed surplus lines policies. Fees and/or enforcement actions imposed will take into consideration how many days elapsed after the filing deadline before the policy was reported and the broker’s late filing record over the previous year.

Please contact the Tech Support team with any questions regarding the annual late filers report.

Coverage and Class Codes to Undergo Updates at SLTX

The Surplus Lines Stamping Office of Texas (SLTX) is pleased to announce upcoming updates to numerous coverage and class codes.  After significant analysis, changes were necessary to provide online filing users with a code selection the more accurately coincides with current industry language and products; with the goal to make the code selection a more obvious choice that more clearly matches policy documentation. The following SLTX Coverage and/ or Class codes have been added or have had updates to their description.  All other existing coverages and classifications remain unchanged unless specifically noted below.

SLTX will provide additional online learning materials, as necessary. SLTX tech support is currently working with automated filers to ensure their product code mappings are updated appropriately.

Primarily, these new codes will be available to use beginning January 1st, 2021.

Accident & Health (A&H)

Update to Existing Codes

Type Code Description
Class 00877 Accident & Health – Group

New Codes

Type Code Description
Coverage 9155 A&H – Occupational Accident
Class 00970 Occupational Accident
Class 99956 Occupational Accident - Excess
Class 99960 Accident & Health - Excess

Auto

New Codes

Type Code Description
Coverage 9302 Auto – Commercial Package (liability + physical damage)
Coverage 9301 Auto – Personal Package (liability + physical damage)
Class 99957 Auto – Excess Commercial Physical Damage
Class 99958 Auto – Excess Personal Physical Damage

Aviation

New Codes

Type Code Description
Class 99951 Aviation - Excess

Builder's Risk

New Codes

Type Code Description
Coverage 9075 Builder’s Risk - Property
Coverage 9076 Builder’s Risk - Liability
Coverage 9077 Builder’s Risk – Package (Property + Liability)

Credit

Mortgage Protection, Lender Single Interest, Forced Placed

Update to Existing Codes

Type Code Description
Coverage 9028 Credit - Other

New Codes

Type Code Description
Coverage 9032 Credit – Asset / Collateral Protection
Coverage 9026 Credit – Mortgage Protection
Coverage 9027 Credit – Lease Enhancement
Coverage 9031 Credit – Real Estate Owned

Crime

New Codes

Type Code Description
Coverage 9964 Crime – Employee Theft
Coverage 9965 Crime – Identity Recovery

Crop

New Codes

Type Code Description
Coverage 9070 Crop – Cannabis / Hemp
Coverage 9071 Crop – Other
Class 11250 Crop

Excess

Update to Existing Codes

Type Code Description
Class 99961 Excess – Umbrella (Excess over Excess / Excess over Umbrella)

General Liability (GL)

New Codes

Type Code Description
Coverage 9166 Gen Liab – Representations & Warranties
Coverage 9333 Gen Liab – Employee Benefit Liability
Coverage 9343 Gen Liab – Assault & Battery

Inlane Marine

New Codes

Type Code Description
Class 00315 Inland Marine – Bailed Cotton
Class 99940 Inland Marine - Excess

Med Mal

Formerly categorized as "Professional"

Update to Existing Codes

Type Code Description
Coverage 9210 Med Mal – Hospital
Coverage 9220 Med Mal – Other Health Facility
Coverage 9230 Med Mal – Physicians, Surgeons, Dentists
Coverage 9240 Med Mal – Other Health Professionals

New Codes

Type Code Description
Class 44421 Medical Spas, Incl Weight Loss Clinics
Class 44428 Imaging Centers, Incl X-Ray, MRI, CT
Class 44427 Home Health Care (Incl Agencies)

Ocean Marine

New Codes

Type Code Description
Coverage 9080 Ocean Marine – Liability
Class 99944 Ocean Marine – Excess

Property

New Codes

Type Code Description
Coverage See separate guidance

Professional

New Codes

Type Code Description
Coverage See separate guidance
Class 81400 Prof – Lawyers
Class 93141 Prof – Law Enforcement Officer
Class 81500 Prof – Engineers or Architects

Special Events

Update to Existing Codes

Type Code Description
Class 00703 Special Event – Short Term (30 days or Less)

New Codes

Type Code Description
Class 00706 Special Event – Prize Indemnity

Miscellaneous

New Codes

Type Code Description
Coverage 9495 Patent / Intellectual Property Infringement
Class 94003 Patent / Intellectual Property Infringement

Non-Exclusive Class Codes (for property, liability, or crime)

Update to Existing Codes

Type Code Description
Class 41714 Day Care Centers, Child or Adult
Class 44100 Governmental Municipalities, Fire Department
Class 45192 Hotels, Motels, Bed & Breakfast, Resort
Class 60010 Apartments, Condos, Townhouses (Commercial Building)
Class 63213 Exhibitions, Incl Rodeo, Sporting Event, Entertainment
Class 88888 Commercial Group Property – Large Risk (Per TIC 2171 and 2152)
Class 99938 Warehouses and Storage Facilities

New Codes

Type Code Description
Class 44421 Medical Spas, Incl Weight Loss Clinics
Class 44428 Imaging Centers, Incl X-Ray, MRI, CT
Class 44427 Home Health Care (Incl Agencies)
Class 21250 Cannabis Dispensary

If you need assistance with the new coverage/ class codes, or you would like to schedule an individual training based on your agency’s lines of business, please contact the SLTX Tech Support team directly by email or phone at (800) 681-5848 (option 2).

The stamping office is here to provide aid and excellent customer service to all in our industry. If there are any questions or concerns, please utilize our  “Submit your Questions” page on our website.

SLTX Coverage Codes to be Eliminated and Replaced

The Surplus Lines Stamping Office of Texas (SLTX) is pleased to announce upcoming updates to numerous coverage and class codes. After significant analysis, changes were necessary to provide online filing users with a code selection the more accurately coincides with current industry language, products, and requests for data; with the goal to make the code selection a more obvious choice that more clearly matches policy documentation. The following SLTX Coverage codes are being eliminated to allow SLTX’s data collection and reporting to most accurately reflect the industry’s needs. Other than the new and updated coverages and classifications outlined here, all other codes remain unchanged.

SLTX will provide additional online learning materials, as necessary. SLTX tech support is currently working with automated filers to ensure their product code mappings are updated appropriately.

Primarily, these new codes will be available to use beginning January 1st, 2021.

Property

While most coverage codes include a clear distinction between residential and commercial coverages, “Property” coverages did not include that separation. Given that industry language, products, and data requests standardly reflect a separation in these lines, it has become necessary to separately categorize residential property from commercial property.

To facilitate this change, many of the generalized “Property” coverage codes will be eliminated (in almost every case) in favor of a bifurcated approach to differentiate “residential” vs. “commercial” property coverages. Significant effort was made to maintain the coding consistency with this transition. SLTX codes will retain the last 2 digits of the code and include either a 6 or 5 to differentiate between residential or commercial.  For example, coverage 9010 (Property – Fire) will become either 9510 (Property – Commercial Fire) or 9610 (Property – Residential Fire). All other property coverages not listed below will remain unchanged.

If you need assistance in determining the “Residential” or “Commercial” status of your transaction, you may utilize this Commercial or Residential flowchart. In most cases, the policy documentation includes a clear and obvious designation; however, there may be instances where the path is not as clear.

There may be some isolated instances where it will be necessary to utilize the “old” codes. IF you receive an error message from the Online Filing Application (EFS or SMART) that indicates that the coding selection is incorrect or invalid, please contact the EFS Help Desk via email so that they may enable your agency to use the “old” code for that specific circumstance.



No Longer in Use After 1/1/2021

Type Code Description
Coverage 9010 Prop – Fire (now uses 9510 or 9610)
Coverage 9015 Prop – Fire / Allied Lines (now uses 9515 or 9615)
Coverage 9020 Prop – Allied Lines (now uses 9520 or 9620)
Coverage 9030 Prop – Farmowners / Ranchowners (now uses 9530 or 9630)
Coverage 9045 Prop – Earthquake (now uses 9545 or 9645)
Coverage 9047 Prop – Flood (now uses 9547 or 9647)
Coverage 9050 Prop – Package (now uses 9550 or 9650)

New Codes - Commercial

Type Code Description
Coverage Builder’s Risk See separate guidance
Coverage 9510 Prop – Commercial Fire ONLY
Coverage 9515 Prop – Commercial Fire / Allied Lines
Coverage 9520 Prop – Commercial Allied Lines ONLY
Coverage 9530 Prop – Commercial Farmowners / Ranchowners
Coverage 9545 Prop – Commercial Earthquake
Coverage 9547 Prop – Commercial Flood
Coverage 9550 Prop – Commercial Package (Property and Liability)

New Codes - Residential

Type Code Description
Coverage 9610 Prop – Residential Fire ONLY
Coverage 9615 Prop – Residential Fire / Allied Lines
Coverage 9620 Prop – Residential Allied Lines
Coverage 9630 Prop – Residential Farmowners / Ranchowners
Coverage 9645 Prop – Residential Earthquake
Coverage 9647 Prop – Residential Flood
Coverage 9650 Prop – Residential Package (Property and Liability)

Professional

Historically, SLTX has categorized all professional coverage that was not specific to medical malpractice (or med mal) as a single coverage called Professional Other including E&O. Given that industry language and products continue to reflect a more robust representation of “Professional” coverage, it has become necessary for SLTX to capture a more detailed breakdown of those professional coverages.

To facilitate this change, the generalized Professional Other coverage codes will be eliminated (in almost every case) in favor of a multi-pronged approach to differentiate between various coverages.

There may be some isolated instances where it will be necessary to utilize the “old” codes. IF you receive an error message from the Online Filing Application (EFS or SMART) that indicates that the coding selection is incorrect or invalid, please contact the EFS Help Desk via email so that they may enable your agency to use the “old” code for that specific circumstance.



No Longer in Use After 1/1/2021

Type Code Description
Coverage 9337 Professional – Other (Incl E&O)

New Codes

Type Code Description
Coverage Med Mal See separate guidance
Coverage 9340 Professional – Employment Practices Liability
Coverage 9341 Professional – E&O
Coverage 9342 Professional – Other (Excluding E&O)

If you need assistance with the new coverage/ class codes, or you would like to schedule an individual training based on your agency’s lines of business, please contact the SLTX Tech Support team directly by email or phone at (800) 681-5848 (option 2).

The stamping office is here to provide aid and excellent customer service to all in our industry. If there are any questions or concerns, please utilize our  “Submit your Questions” page on our website.

SLTX to Provide Updates on Coverage and Class Codes

The Surplus Lines Stamping Office of Texas is pleased to announce upcoming updates to numerous coverage and class codes. With the exception of few changes, SLTX coverage and class codes have not undergone a full update for over 20 years. Over time the market has grown, and with that, stakeholder needs have changed as well. Because of this, SLTX is committed to understanding new developments and needs within the insurance industry to better capture various trends in the growing market.

Our research suggests that by updating coverage and class codes, filing agents will have access to a code selection which more accurately coincides with current industry language and products (e.g. Cannabis, Professional (Medical Malpractice), Property, etc.). Additionally, SLTX will have the opportunity to encompass industry interests as well as track market insights when viewing data reports. By separately capturing commercial and residential designations on the coverage code level, SLTX’s reporting on this data will be more accurate and more efficient.

Research shows current E&O liability is included within Other Professional Liability coverages; however, E&O liability has become such a prominent coverage that it should be captured separately. This will allow the coverage to be distinguished from other, more infrequent professional liability coverages. Other coverages, including cannabis crop, has grown significantly over the last few years and should be identified separately to capture its growth. Lastly, the recent rise in natural disasters in Texas has illuminated the residential property market and, therefore, should be distinguishable.

In addition to updating coverage and class codes, SLTX will provide online learning materials to better aid in the transition. These specific trainings will become available on our website, and agents will be notified of each release. Additionally, SLTX tech support will be reaching out individually to automated filers to ensure their product code mappings are updated appropriately. The goal for the beginning of this new transition is on January 1st, 2021.

The stamping office is here to provide aid and excellent customer service to all in our industry. If there are any questions or concerns, please utilize our  “Submit your Questions” page on our website.

TDI calls for data collection for 2019 North Texas storm

The Texas Department of Insurance (TDI) has issued a data call to all insurers, including surplus lines insurers and insurers licensed to write property and casualty insurance in Texas, for the wind, hail, thunderstorm, and flood event that took place on October 20, 2019, in North Texas. Please visit TDI’s website for data call instructions and related information.

Only companies required to report property lines in 2020 under the statistical plan are required to report data for this event. A list of the surplus lines companies which are required to respond to the data call can be found directly on TDI’s website relating to the data collection bulletin.

Companies must send all reports to TDI’s statistical agent, Insurance Services Office, Inc. (ISO). ISO needs reporting insurers to complete the attached form on Bulletin #B-0040-20 to set up the appropriate credentials for statistical reporting. Please return the form to ISO at TXCatStatAgent@verisk.com. Any questions about registering with ISO should be sent to TXCatStatAgent@verisk.com. Once your registration is processed, ISO will provide you with your credentials and relevant reporting instructions.

Property insurers should contact ISO even if the company does not have any claims to report for the wind, hail, thunderstorm, and flood event. These companies will still be required to respond to TDI’s bulletin as provided in the statistical plan.

The first report for data as of September 30, 2020, is due December 28, 2020. Subsequent reports are due on a quarterly basis, 30 days after the end of the quarter. For any questions about how to submit data to ISO, please contact TXCatStatAgent@verisk.com.

SMART Release Updates October 2020

On June 19, 2020, SLTX released portions of its new online filing system, SMART. This release contained filing features that are specific to automated or “programmatic” filers as these filing methods make up with the largest majority of the transactions filed with SLTX. Beta testing is ongoing and feedback by automated filing broker users is strongly encouraged as broker testing is the primary mechanism to ensure data related scenarios are handled effectively and efficiently. If you, as an automated filer, have not requested the updated Technical Reference and User Guides, please contact the SLTX Tech Support team by email.

The focus of October’s release are features for the Reporting module, which will allow SLTX to transition away from existing legacy applications. Once complete, both internal and external users will be able to access reports directly through the SMART application. Once the Reporting modules are complete, SLTX will resume work on the internal and external filing modules to include manual entry, transaction inquiry, and corrections. Development and subsequent releases relating to these specific filing modules will resume in early 2021.

While beta testing and feedback are ongoing, current EFS processes and procedures will continue to be available. Both systems will remain functional and work concurrently until the entire suite of features in SMART are fully delivered.

With each new release or significant deployment, additional notifications will be sent to existing users of SLTX’s Electronic Filing System (EFS). These notifications may also be found directly on our website under News>Procedural Updates.

Please contact the SLTX Tech Support team by email or phone at (512) 531-1880 or (800) 681-5848 with any questions.

Attorney General Warns Texans of Scams in Wake of Incoming Storms

Ken Paxton, Texas Attorney General, cautions Texas residents of potential scams and price gouging of products following Tropical Storm Marco and Hurricane Laura. State law prohibits price gouging of necessities such as water, food, batteries, clothing, medical supplies, lodging, repair work, or fuel when experiencing a declared disaster.

“In preparation for the coming storms, I urge all Texans to be cautious of dishonest individuals looking to scam vulnerable citizens,” said Attorney General Paxton. “My office will aggressively prevent disaster scams and stands ready to prosecute any price-gouger who takes advantage of Texans.”

Price gouging is illegal, and penalties will be delivered under the Texas Deceptive Trade Practices Act. Governor Greg Abbott issued a disaster declaration for the counties of Aransas, Bexar, Brazoria, Calhoun, Cameron, Chambers, Galveston, Hardin, Harris, Jackson, Jasper, Jefferson, Kenedy, Kleberg, Liberty, Matagorda, Newton, Nueces, Orange, Refugio, San Patricio, Victoria, and Willacy.

Report suspected price gouging or scams by filing a Consumer Complaint with the Texas Attorney General’s Office or call the toll-free complaint line at (800) 621-0508. All consumer complaints are open record and are made public by the Consumer Protection Division. Further information on this and other reports from the Texas Attorney General may be found at www.texasattorneygeneral.gov

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