TITLE: Relating to the duty of a surplus lines insurance agent in the placement of a surplus lines insurance policy.

SUMMARY: Relating to the duty of a surplus lines insurance agent in the placement of a surplus lines insurance policy.

FULL TEXT:
AN ACT relating to the duty of a surplus lines insurance agent in the placement of a surplus lines insurance policy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 981.004, Texas Insurance Code is amended by amending Subsection (a) and adding subsection (d), to read as follows: (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 diligent effort by the surplus lines agent placing the policy,from an insurer authorized to write and actually writing that kind and class of insurance in this state; (2) the insurance is placed through a surplus lines agent; and (3) the insurer meets the eligibility requirements of Subchapter Bas of the inception date and annual anniversary date of each insurance contract, cover note, or other confirmation of insurance. (d) The surplus lines agent placing the policy shall maintain in the agent's files a record indicating the performance of the diligent effort required by subsection (a) of this section, available for inspection by the department. SECTION 2. This Act takes effect January 1, 2016.