Texas Insurance Code Title 6, Chapter 981 - Surplus Lines Insurance

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 981.001 - Purpose
  (a) An insurance transaction that is entered into by a resident of this state with an eligible surplus lines insurer through a surplus lines agent...
• Texas Section 981.002 - Definitions
  In this chapter: (1) "Affiliate" means, with respect to determining the home state of an insured, and solely for the purpose of determining whether an...
• Texas Section 981.003 - Applicability Of Chapter
  This chapter applies to surplus lines insurance if the home state of the insured is this state. Added by Acts 2001, 77th Leg., ch. 1419,...
• Texas Section 981.0031 - Exempt Commercial Purchaser Defined
  (a) For purposes of this chapter, "exempt commercial purchaser" means a person who purchases commercial insurance and, at the time of placement: (1) employs or...
• Texas Section 981.0032 - Qualified Risk Manager Defined
  For purposes of this chapter, "qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who: (1) is an employee of,...
• Texas Section 981.004 - Surplus Lines Insurance Authorized
  (a) An eligible surplus lines insurer may provide surplus lines insurance only if: (1) the full amount of required insurance cannot be obtained, after a...
• Texas Section 981.005 - Validity Of Contracts
  (a) Unless a material and intentional violation of this chapter or Chapter 225 exists, an insurance contract obtained from an eligible surplus lines insurer is:...
• Texas Section 981.006 - Sanctions
  Chapter 82 applies to a surplus lines agent or an eligible surplus lines insurer that violates: (1) this chapter; (2) Chapter 225; or (3) a...
• Texas Section 981.007 - Liability Of Surplus Lines Insurer For Losses And Unearned Premiums
  (a) This section applies if: (1) an eligible surplus lines insurer has assumed a risk under this chapter; and (2) the surplus lines agent who...
• Texas Section 981.008 - Surplus Lines Insurance Premium Tax
  The premiums charged for surplus lines insurance are subject to the premium tax, if applicable, imposed under Chapter 225. Added by Acts 2001, 77th Leg.,...

SUBCHAPTER B ELIGIBILITY REQUIREMENTS FOR SURPLUS LINES INSURERS

• Texas Section 981.009 - Rules
  The commissioner may adopt rules to implement this chapter or satisfy requirements under federal law or regulations. Added by Acts 2001, 77th Leg., ch. 1419,...
• Texas Section 981.051 - Authorization Required
  (a) Before an insurer may issue surplus lines insurance, the insurer must hold an authorization to engage in the business of insurance from its domiciliary...
• Texas Section 981.054 - Certain Preconditions Not Allowed
  An eligible surplus lines insurer may not require as a condition precedent to writing new or renewal surplus lines insurance that the insured or prospective...
• Texas Section 981.057 - Minimum Capital And Surplus Requirements
  (a) Except as provided by Subsection (b), an eligible surplus lines insurer must maintain capital and surplus in an amount of at least $15 million....
• Texas Section 981.058 - Alien Insurers
  An alien surplus lines insurer must be listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department, National Association of Insurance...
• Texas Section 981.063 - Commissioner Or Department Not Responsible For Determining Unauthorized Insurer's Financial Condition Or Claims Practices
  This subchapter does not impose on the commissioner or department a responsibility to determine the actual financial condition or claims practices of an unauthorized insurer...
• Texas Section 981.064 - Commissioner May Order Revocation Of Contracts
  The commissioner may order the revocation of an insurance contract issued by an eligible surplus lines insurer that does not meet the eligibility requirements of...
• Texas Section 981.065 - Applicability To Contract Extension
  This subchapter and Sections 981.101(b), 981.210, and 981.211 apply to an extension of an insurance contract beyond its original expiration date. Added by Acts 2001,...

SUBCHAPTER C REQUIREMENTS AND PROCEDURES FOR ISSUANCE OF SURPLUS LINES DOCUMENTS

• Texas Section 981.066 - Uniform Standards
  To issue surplus lines insurance in this state, an insurer must comply with all applicable nationwide uniform standards adopted by this state in accordance with...
• Texas Section 981.101 - Requirements For Surplus Lines Documents
  (a) In this section, "surplus lines document" means each new or renewal insurance contract, certificate, cover note, or other confirmation of insurance obtained and delivered...
• Texas Section 981.102 - Limit On Use Of Surplus Lines Policy Or Contract Forms
  A surplus lines insurance policy or contract form may not be used unless use of the form is: (1) reasonably necessary for the principal purposes...
• Texas Section 981.103 - Delivery To Insured Of Surplus Lines Documents
  (a) On placing new or renewal surplus lines coverage, a surplus lines agent shall promptly issue and deliver to the insured or to the insured's...
• Texas Section 981.104 - Delivery To Insured Of Revised Surplus Lines Documents
  (a) A surplus lines agent shall promptly deliver to the insured a substitute certificate, cover note, confirmation, or endorsement for the original document showing the...

SUBCHAPTER D SURPLUS LINES STAMPING OFFICE

• Texas Section 981.105 - Filing With Stamping Office
  (a) Not later than the 60th day after the later of the effective date or the issue date of new or renewal surplus lines insurance,...
• Texas Section 981.151 - Status As Nonprofit Association
  The Surplus Lines Stamping Office of Texas is a nonprofit association. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
• Texas Section 981.152 - Board Of Directors
  (a) The board of directors of the stamping office exercises the powers of the office. (b) The board consists of nine members appointed by the...
• Texas Section 981.153 - Plan Of Operation
  (a) The procedures to administer the stamping office are established by a plan of operation approved by the commissioner. The plan of operation establishes the...
• Texas Section 981.154 - Powers And Duties
  (a) The stamping office shall perform its functions under the plan of operation. (b) The stamping office shall conduct the following activities as provided in...
• Texas Section 981.155 - Supervision By Commissioner
  The commissioner shall supervise the stamping office. The stamping office is subject to the applicable provisions of this code and rules of the commissioner. Added...
• Texas Section 981.156 - Examination By Commissioner
  (a) The commissioner shall examine the stamping office at any time the commissioner considers an examination necessary. (b) The stamping office shall pay the cost...
• Texas Section 981.157 - Immunity From Liability
  A person or entity is not liable for, and a cause of action does not arise out of, an act or omission in performing a...
• Texas Section 981.158 - Exemption From Public Information Law
  (a) An individual surplus lines insurance contract filed with the stamping office is: (1) confidential; and (2) not public information under Chapter 552, Government Code....
• Texas Section 981.159 - Exemption From Library And Archives Law
  Chapter 441, Government Code, does not apply to the stamping office or its records. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff....

SUBCHAPTER E SURPLUS LINES AGENTS

• Texas Section 981.160 - No Enforcement Authority
  This subchapter does not give the stamping office authority to enforce this chapter or Chapter 225. Added by Acts 2001, 77th Leg., ch. 1419, Sec....
• Texas Section 981.201 - Definition
  In this subchapter, "managing general agent" means an agent licensed under Chapter 4053. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
• Texas Section 981.202 - Surplus Lines License Required
  An agent licensed by this state may not issue or cause to be issued an insurance contract with an eligible surplus lines insurer unless the...
• Texas Section 981.203 - Qualifications For Surplus Lines License
  Sec. 981.203. QUALIFICATIONS FOR SURPLUS LINES LICENSE. (a) The department may issue a surplus lines license to an applicant who the department determines complies with...
• Texas Section 981.204 - Classification Of Surplus Lines Agents
  The department may classify surplus lines agents and issue a surplus lines license to an agent in accordance with: (1) a classification created under this...
• Texas Section 981.210 - Placement Of Coverage
  A surplus lines agent may not place surplus lines coverage with an insurer unless: (1) the insurer meets the eligibility requirements of Subchapter B; and...
• Texas Section 981.211 - Financial Condition Of Surplus Lines Insurers
  (a) A surplus lines agent must make a reasonable effort to determine the financial condition of an eligible surplus lines insurer before placing insurance with...
• Texas Section 981.212 - Accepting Surplus Lines Insurance From Other Agents
  (a) A surplus lines agent may originate surplus lines insurance or accept surplus lines insurance from another agent who is licensed to handle the kind...
• Texas Section 981.213 - Filing Contract With Stamping Office
  A surplus lines agent responsible under Section 225.006 for the filing, reporting, collection, payment, and other requirements imposed by Chapter 225 shall report to and...
• Texas Section 981.214 - Compliance With Stamping Office Plan Of Operation
  A surplus lines agent shall comply with the stamping office's plan of operation. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
• Texas Section 981.215 - Surplus Lines Agent Records
  Sec. 981.215. SURPLUS LINES AGENT RECORDS. (a) A surplus lines agent shall maintain a complete record of each surplus lines contract obtained by the agent,...
• Texas Section 981.216 - Annual Report
  (a) Before March 1 of each year, a surplus lines agent shall submit a report to the department for the preceding calendar year. (b) The...
• Texas Section 981.217 - Notice To Department Required
  (a) A surplus lines agent shall notify the department not later than the 30th day after the date any of the following occurs: (1) balances...
• Texas Section 981.218 - Department Monitoring Of Surplus Lines Agents
  The commissioner shall monitor the activities of surplus lines agents as necessary to protect the public interest. Added by Acts 2001, 77th Leg., ch. 1419,...
• Texas Section 981.219 - Advertising
  A surplus lines agent may advertise regarding the agent's ability to place surplus lines insurance permitted by this chapter. Added by Acts 2001, 77th Leg.,...
• Texas Section 981.220 - Managing General Agents; Limited Authority Of Certain Agents
  A surplus lines license granted to a managing general agent who is not also licensed under Chapter 4051 is limited to the acceptance of business...
• Texas Section 981.221 - Suspension Or Revocation Of License
  If a license holder does not maintain the qualifications necessary to obtain the license, the department may revoke or suspend the license or deny the...
• Texas Section 981.222 - Applicability Of Other Law
  In addition to the requirements of this chapter, the administration and regulation of a surplus lines agent's license is governed by Title 13, except that...
• Texas Section 981.223 - Managing Underwriters
  (a) A managing underwriter with whom an insurance policy is placed in the manner described by Section 225.006(b) shall maintain appropriate records and make the...

Last modified: September 28, 2016