TDI Reminder to Surplus Lines Agents Filing Policies with SLSOT

The Texas Department of Insurance (TDI) has requested that we distribute the attached notice to all surplus lines agents. For any questions concerning this bulletin, please contact Teresa Hudson, TDI, at 512-322-3535.

REMINDER TO ALL SURPLUS LINES AGENTS FILING POLICIES WITH THE SURPLUS LINES STAMPING OFFICE OF TEXAS (SLSOT)

Pursuant to Texas Insurance Code Section 981.105, a surplus lines agent must file a new or renewal policy with the SLSOT not later than the 60th day after the later of the effective date or issue date. Effective May 28, 2011, Section 981.105 specifies the regulatory remedies the commissioner may take for late-filed surplus lines policies. Section 981.105 provides two authorized remedies for surplus lines agents who file policies late: fees and enforcement actions. The authorized remedies the commissioner may take vary according to the date filed and the percentage of policies you filed late during the preceding calendar year. The following table summarizes the authorized remedies:

When was the policy filed? Past filing behavior - percentage of policies filed late in the prior year Authorized remedy 61 to 180 days after the policy effective or issue date Less than 5 percent $50 fee per policy 61 to 180 days after the policy effective or issue date Greater than 5 percent $100 fee per policy 181 to 364 days after the policy effective or issue date Less than 2 percent $200 fee per policy 181 to 364 days after the policy effective or issue date Greater than 2 percent Enforcement action 365 days after the policy effective or issue date Enforcement action

For questions concerning this bulletin, please contact Teresa Hudson at 512-322-3535.