reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter B. Captive Insurance Companies › Section 964.070. Confidentiality

Sec. 964.070.  CONFIDENTIALITY.  (a)  Any information filed with the commissioner by an applicant or captive insurance company under this chapter is confidential and privileged for all purposes, including for purposes of Chapter 552, Government Code, a response to a subpoena, or evidence in a civil action.  Except as provided by Subsections (b) and (c), the information may not be disclosed without the prior written consent of the applicant or captive insurance company to which the information pertains.
(b)  If the recipient of the information described by Subsection (a) has the legal authority to maintain the confidential or privileged status of the information and verifies that authority in writing, the commissioner or another person may disclose the information to any of the following entities functioning in an official capacity:
(1)  a commissioner of insurance or an insurance department of another state;
(2)  an authorized law enforcement official;
(3)  a district attorney of this state;
(4)  the attorney general;
(5)  a grand jury;
(6)  the National Association of Insurance Commissioners if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Chapter 823;
(7)  another state or federal regulator if the applicant or captive insurance company to which the information relates operates in the entity's jurisdiction;
(8)  an international insurance regulator or analogous financial agency if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Chapter 823 and the holding company system operates in the entity's jurisdiction; or
(9)  members of a supervisory college described by Section 823.0145, if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Chapter 823.
(c)  The commissioner may use information described by Subsection (a) in the furtherance of a legal or regulatory action relating to the administration of this code.
(d)  The secretary of state may index in the public record any document filed with the secretary by an applicant or captive insurance company.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 2, eff. June 14, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 1.16, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter B. Captive Insurance Companies › Section 964.071. Redomestication

Sec. 964.071.  REDOMESTICATION.  (a)  An authorized foreign or alien captive insurance company licensed under laws of any jurisdiction may become a domestic captive insurance company in this state on a determination by the commissioner that the authorized foreign or alien captive insurance company has complied with all of the requirements of this chapter for the issuance of a certificate of authority to, and the Business Organizations Code for converting to an entity of this state for, a domestic captive insurance company of the same type.
(b)  A domestic captive insurance company, on the approval of the commissioner, may transfer its domicile.  On the transfer, the captive insurance company ceases to be a domestic captive insurance company.  The commissioner shall approve any proposed transfer unless the commissioner determines the transfer is not in the best interest of the policyholders.
(c)  The commissioner may postpone or waive the imposition of any fees or taxes under this code for a period not to exceed two years for any foreign or alien captive insurance company redomesticating to this state.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 2, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter B. Captive Insurance Companies › Section 964.072. Approval of Captive Reinsurance Pools

Sec. 964.072.  APPROVAL OF CAPTIVE REINSURANCE POOLS.  Before determining whether to approve a captive insurance company's participation in a captive reinsurance pool under Section 964.052, the commissioner may:
(1)  require the captive insurance company provide to the commissioner evidence that the captive reinsurance pool:
(A)  is composed only of other captive insurance companies holding a certificate of authority under this chapter or a similar law of another jurisdiction; and
(B)  will be able to meet the pool's financial obligations; and
(2)  impose any other limitation or requirement on the captive insurance company that is necessary and proper to provide adequate security for the captive insurance company.
Added by Acts 2015, 84th Leg., R.S., Ch. 469 (S.B. 667), Sec. 4, eff. June 15, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter B. Captive Insurance Companies › Section 964.073. Adjuster License Not Required; Exception

Sec. 964.073.  ADJUSTER LICENSE NOT REQUIRED; EXCEPTION.  (a)  Except as provided by Subsection (b), a captive insurance company is not required to use a person licensed as an adjuster under Chapter 4101 to adjust losses.
(b)  A captive insurance company shall use a person licensed as an adjuster under Chapter 4101 to adjust a claim that a person that is not an affiliated company or an insured controlled unaffiliated business makes against an affiliated company insured by the captive insurance company.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 1.17, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.101. Applicability of Other Law

Sec. 964.101.  APPLICABILITY OF OTHER LAW.  (a)  A captive exchange is subject to:
(1)  this chapter; and
(2)  Sections 942.051, 942.053, and 942.054.
(b)  To the extent of a conflict, this chapter controls over other law applicable to a captive exchange under this section.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.102. Status of Captive Exchanges

Sec. 964.102.  STATUS OF CAPTIVE EXCHANGES.  A captive exchange is formed as an exchange as provided by this subchapter and, except as provided by this subchapter, shall operate as a captive insurance company as provided by this chapter.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.103. Subscriber Requirements

Sec. 964.103.  SUBSCRIBER REQUIREMENTS.  On and after the date of the captive exchange's formation, each subscriber of the captive exchange must:
(1)  have an existing affiliation with each other subscriber; or
(2)  satisfy the definition of a controlled unaffiliated business regardless of any affiliation relationship created by the captive exchange.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.104. Attorney in Fact Requirements

Sec. 964.104.  ATTORNEY IN FACT REQUIREMENTS.  The attorney in fact of a captive exchange must:
(1)  be:
(A)  a corporation organized in this state; or
(B)  a limited liability company organized in this state;
(2)  on the date of the captive exchange's formation, have and maintain a power of attorney with all subscribers of the captive exchange;
(3)  have its principal office in this state; and
(4)  have at least three members in the governing body of the attorney in fact, and at least one of those members must be a resident of this state.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.105. Attorney in Fact Powers and Duties

Sec. 964.105.  ATTORNEY IN FACT POWERS AND DUTIES.  (a)  The attorney in fact of a captive exchange shall:
(1)  supervise the finances of the captive exchange;
(2)  supervise the captive exchange's operations to ensure the captive exchange's conformity with the captive exchange's subscriber declaration and power of attorney; and
(3)  obtain, as necessary, an audit of the account and records of the attorney in fact at the expense of the captive exchange.
(b)  The attorney in fact of a captive exchange has any additional powers and duties conferred by the captive exchange's subscriber declaration and power of attorney.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 964 - Captive Insurance Companies › Subchapter C. Captive Exchanges › Section 964.106. Subscriber Declaration

Sec. 964.106.  SUBSCRIBER DECLARATION.  A captive exchange shall file with the department a subscriber declaration that includes:
(1)  the information described by Section 942.053;
(2)  the amount of the captive exchange's initial surplus; and
(3)  a provision to authorize a quorum of the governing body of the captive exchange's attorney in fact to consist of not fewer than one-third of the fixed number of members of the governing body.
Added by Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 2.01, eff. June 15, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.001. Purpose

Sec. 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 because of difficulty in obtaining coverage from an authorized insurer is a matter of public interest.
(b)  The transaction of surplus lines insurance is a subject of concern and it is necessary to provide for the regulation, taxation, supervision, and control of these transactions and the practices and matters related to these transactions by:
(1)  requiring appropriate standards and reports concerning the placement of surplus lines insurance;
(2)  imposing requirements necessary to make regulation and control of surplus lines insurance reasonably complete and effective;
(3)  providing orderly access to eligible surplus lines insurers;
(4)  ensuring the maintenance of fair and honest markets;
(5)  protecting the revenues of this state;  and
(6)  protecting authorized insurers, which under the laws of this state must meet strict standards relating to the regulation and taxation of the business of insurance, from unfair competition by unauthorized insurers.
(c)  To regulate and tax surplus lines insurance placed in accordance with this chapter within the meaning and intent of 15 U.S.C. Section 1011 and 15 U.S.C. Chapter 108, this chapter provides an orderly method for each person whose home state is this state for a particular transaction to effect insurance with eligible surplus lines insurers through qualified, licensed, and supervised surplus lines agents in this state, if coverage is not available from authorized and regulated insurers engaged in business in this state, under reasonable and practical safeguards.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.002. Definitions

Sec. 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 entity is another entity's affiliate, a person or entity that controls, is controlled by, or is under common control with the insured.
(2)  "Affiliated group" means a group of entities whose members are all affiliated.
(3)  "Control" means, with respect to determining the home state of an insured, and solely for the purpose of determining whether an entity is another entity's affiliate:
(A)  to directly or indirectly, acting through one or more persons, own, control, or hold the power to vote at least 25 percent of any class of voting security of the other entity; or
(B)  to control in any manner the election of the majority of directors or trustees of the other entity.
(4)  "Eligible surplus lines insurer" means an insurer that is not an authorized insurer, but that is eligible under Subchapter B or B-1, in which surplus lines insurance is placed or may be placed under this chapter.
(5)  "Home state" means, with respect to an insured:
(A)  the state in which the insured maintains the insured's principal residence, if the insured is an individual;
(B)  the state in which the insured maintains the insured's principal place of business, if the insured is not an individual;
(C)  if 100 percent of the insured risk is located outside of the state in which the insured maintains the insured's principal residence or principal place of business, as applicable, the state to which the greatest percentage of the insured's taxable premium for the insurance contract that covers the risk is allocated; or
(D)  for an affiliated group, the home state of the member, as determined under Paragraphs (A)-(C), that has the largest percentage of premium attributed to it under the insurance contract.
(6)  "Managing underwriter" means a surplus lines agent or agency that exercises, pursuant to a written agreement with an eligible surplus lines insurer, underwriting authority for the eligible surplus lines insurer and that derives the agent or agency's business from a surplus lines agent.
(7)  "Stamping office" means the Surplus Lines Stamping Office of Texas.
(8)  "Surplus lines agent" means an agent licensed under Subchapter E to procure an insurance contract from a surplus lines insurer.
(9)  "Surplus lines insurance" means insurance coverage  that may be placed, in accordance with this chapter, with an eligible surplus lines insurer or the insurer's managing underwriter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 837 (H.B. 3410), Sec. 2, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 2, eff. June 14, 2013.
Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 2, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.003. Applicability of Chapter

Sec. 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, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 3, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.0031. Exempt Commercial Purchaser Defined

Sec. 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 retains a qualified risk manager to negotiate insurance coverage;
(2)  has paid aggregate nationwide commercial property and casualty insurance premiums of more than $100,000 in the immediately preceding 12 months; and
(3)  meets at least one of the following criteria:
(A)  has a net worth of more than $20 million;
(B)  generates annual revenue of more than $50 million;
(C)  employs more than 500 full-time or full-time equivalent employees per individual insured, or is a member of an affiliated group that employs more than 1,000 employees in aggregate;
(D)  is a nonprofit organization or public entity generating annual budgeted expenditures of at least $30 million; or
(E)  is a municipality with a population of more than 50,000.
(b)  Effective on January 1, 2015, and on every fifth January 1 thereafter, the commissioner shall by order adjust the amounts provided by Subsections (a)(3)(A), (B), and (D) to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor for the five-year period immediately preceding January 1 of the year of the adjustment.
Added by Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 4, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.0032. Qualified Risk Manager Defined

Sec. 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, or third-party consultant retained by, a commercial policyholder;
(2)  provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis and the purchase of insurance; and
(3)  satisfies the requirements of one of the following paragraphs:
(A)  has:
(i)  a bachelor's or higher degree from an accredited college or university in risk management, business administration, finance, economics, or another field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate competence in risk management; and
(ii)  either:
(a)  at least three years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis, or purchasing of commercial lines of insurance; or
(b)  a designation, certification, or license:
(1)  as a chartered property casualty underwriter (CPCU), issued by the American Institute for CPCU/Insurance Institute of America;
(2)  as an associate in risk management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;
(3)  as a Certified Risk Manager (CRM) issued by the National Alliance for Insurance Education and Research;
(4)  as a RIMS Fellow (RF) issued by the Global Risk Management Institute; or
(5)  that is determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competence in risk management;
(B)  has at least seven years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing of commercial lines of insurance and one of the designations, certifications, or licenses described by Paragraph (A)(ii)(b);
(C)  has at least 10 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or
(D)  has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or another field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate competence in risk management.
Added by Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 4, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.0033. Industrial Insured Defined

Sec. 981.0033.  INDUSTRIAL INSURED DEFINED.  For purposes of this chapter, "industrial insured" means a person who purchases commercial insurance and, at the time of placement:
(1)  employs or retains a qualified risk manager to negotiate insurance coverage; and
(2)  either:
(A)  has paid aggregate nationwide commercial property and casualty insurance premiums of more than $25,000 in the immediately preceding 12 months; or
(B)  employs at least 25 full-time employees.
Added by Acts 2017, 85th Leg., R.S., Ch. 92 (H.B. 1559), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.005. Validity of Contracts

Sec. 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:
(1)  valid and enforceable as to all parties; and
(2)  recognized in the same manner as a comparable contract issued by an authorized insurer.
(b)  A material and intentional violation of this chapter or Chapter 225 does not preclude the insured from enforcing the insured's rights under the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.125, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.006. Sanctions

Sec. 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 rule or order adopted under Subchapter B or B-1 or Section 981.005.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.126, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 4, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.007. Liability of Surplus Lines Insurer for Losses and Unearned Premiums

Sec. 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 placed the insurance has received the premium for that risk.
(b)  If a coverage question between the eligible surplus lines insurer and the insured arises regarding the assumed risk, the insurer is considered to have received the premium due for that coverage.
(c)  The eligible surplus lines insurer is liable to the insured for any:
(1)  loss covered by the insurance;  and
(2)  unearned premium payable to the insured on cancellation of the insurance.
(d)  This section applies without regard to whether the surplus lines agent is indebted to the insurer regarding the insurance or for any other cause.
(e)  An eligible surplus lines insurer that assumes a risk under this chapter subjects itself to this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.008. Surplus Lines Insurance Premium Tax

Sec. 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., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.127, eff. April 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.10, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter A. General Provisions › Section 981.009. Rules

Sec. 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, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.228(a), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.051. Authorization Required

Sec. 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 state or country.
(b)  The authorization from the domiciliary state or country must be for the same kind or class of insurance to be written in this state as surplus lines insurance.
(c)  The surplus lines insurer must provide to the commissioner satisfactory evidence that the insurer holds the authorization.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.054. Certain Preconditions Not Allowed

Sec. 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 insured place with the insurer other insurance that is not obtainable as surplus lines insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.057. Minimum Capital and Surplus Requirements

Sec. 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.
(b)  Subsection (a) does not apply to alien surplus lines insurers listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department, National Association of Insurance Commissioners.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 6, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.058. Alien Insurers

Sec. 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 Commissioners.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 7, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.063. Commissioner or Department Not Responsible for Determining Unauthorized Insurer's Financial Condition or Claims Practices

Sec. 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 as described by Chapter 101.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.064. Commissioner May Order Revocation of Contracts

Sec. 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 this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.065. Applicability to Contract Extension

Sec. 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, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. Eligibility Requirements for Surplus Lines Insurers › Section 981.066. Uniform Standards

Sec. 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 15 U.S.C. Section 8204.
Added by Acts 2013, 83rd Leg., R.S., Ch. 595 (S.B. 951), Sec. 8, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.071. Definition

Sec. 981.071.  DEFINITION.  In this subchapter, "domestic surplus lines insurer" means an insurance company designated as a domestic surplus lines insurer under Section 981.072.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.072. Designation as Domestic Surplus Lines Insurer

Sec. 981.072.  DESIGNATION AS DOMESTIC SURPLUS LINES INSURER.  (a)  A property and casualty insurance company organized under Chapter 822 that has capital and surplus in an amount described by Section 981.057 may apply to the department in a form and manner prescribed by the commissioner for designation as a domestic surplus lines insurer.
(b)  On approval of an application under Subsection (a), the commissioner shall designate an applicant as a domestic surplus lines insurer and issue to the applicant a domestic surplus lines insurer certificate.
(c)  Notwithstanding Section 822.101, a domestic surplus lines insurer is not entitled to a certificate of authority to engage in the business of insurance in this state in the admitted market.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.073. Applicability of Other Law; Conflicts

Sec. 981.073.  APPLICABILITY OF OTHER LAW; CONFLICTS.  (a)  Except as provided by Subsection (b), a domestic surplus lines insurer is subject to:
(1)  this chapter; and
(2)  all other insurance laws, including Title 4, applicable to a property and casualty insurance company organized under Chapter 822.
(b)  A domestic surplus lines insurer is not subject to:
(1)  Section 38.003;
(2)  Chapter 462;
(3)  Chapter 463;
(4)  Chapter 501;
(5)  Section 981.051;
(6)  Section 981.101(b);
(7)  Chapter 2007;
(8)  Chapter 2301;
(9)  Chapter 2251; and
(10)  Chapter 1006, Transportation Code.
(c)  To the extent that this subchapter conflicts with any other insurance law, this subchapter controls.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 594 (S.B. 604), Sec. 5.25, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.074. Authorized Business

Sec. 981.074.  AUTHORIZED BUSINESS.  (a)  A domestic surplus lines insurer may only insure a risk in this state if:
(1)  the insurance is procured as eligible surplus lines insurance under this chapter; and
(2)  the insurance is a kind of insurance the insurer is authorized to write under the insurer's articles of incorporation.
(b)  A domestic surplus lines insurer may not issue:
(1)  a policy in the admitted market; or
(2)  a policy to satisfy the financial responsibility requirements of Chapter 601, Transportation Code, insurance requirements of Chapter 406, Labor Code, or requirements of any other law of this state mandating insurance coverage by an insurance company authorized to engage in the business of insurance in this state.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.075. Taxes Imposed

Sec. 981.075.  TAXES IMPOSED.  (a)  The premium for a surplus lines policy written under this subchapter is subject to the premium tax, if applicable, imposed under Chapter 225.
(b)  A  domestic surplus lines insurer is subject to an applicable maintenance tax as if the domestic surplus lines insurer were an authorized insurer under Subtitle C, Title 3.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.076. Requirements for Domestic Surplus Lines Documents

Sec. 981.076.  REQUIREMENTS FOR DOMESTIC SURPLUS LINES DOCUMENTS.  (a)  In this section, "surplus lines document" has the meaning assigned by Section 981.101.
(b)  A surplus lines document issued by a domestic surplus lines insurer must include a statement in the form and manner provided by commissioner rule.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter B. -1. Domestic Surplus Lines Insurer › Section 981.077. Redomestication

Sec. 981.077.  REDOMESTICATION.  A foreign insurer may redomesticate to this state as a domestic surplus lines insurer as provided by Chapter 983 if the foreign insurer qualifies under Section 981.072.
Added by Acts 2017, 85th Leg., R.S., Ch. 854 (H.B. 2492), Sec. 5, eff. January 1, 2018.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter C. Requirements and Procedures for Issuance of Surplus Lines Documents › Section 981.101. Requirements for Surplus Lines Documents

Sec. 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 as surplus line coverage under this chapter.
(b)  A surplus lines document must state, in 11-point type, the following:
This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as surplus line coverage under the Texas insurance statutes.  The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer is not a member of the property and casualty insurance guaranty association created under Chapter 462, Insurance Code.  Chapter 225, Insurance Code, requires payment of a __________ (insert appropriate tax rate) percent tax on gross premium.
(c)  A surplus lines document must show:
(1)  the description and location of the subject of the insurance;
(2)  the coverage, conditions, and term of the insurance;
(3)  the premium and rate charged, and premium taxes to be collected from the insured;
(4)  the name and address of:
(A)  the insured;
(B)  the insurer;  and
(C)  the insurance agent who obtained the surplus line coverage;  and
(5)  if the direct risk is assumed by more than one insurer:
(A)  the name and address of each insurer;  and
(B)  the proportion of the entire direct risk assumed by each insurer.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.128, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter C. Requirements and Procedures for Issuance of Surplus Lines Documents › Section 981.102. Limit on Use of Surplus Lines Policy or Contract Forms

Sec. 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 of the insurance coverage;  or
(2)  not contrary to the purposes of this chapter regarding the reasonable protection of authorized insurers from unwarranted competition by unauthorized insurers.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter C. Requirements and Procedures for Issuance of Surplus Lines Documents › Section 981.103. Delivery to Insured of Surplus Lines Documents

Sec. 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 agent the following evidence of insurance:
(1)  the policy issued by the insurer;  or
(2)  if the policy is not available, a certificate, cover note, or other confirmation of insurance.
(b)  If the policy is not available at the time of placement of the insurance, the surplus lines agent shall, on the insured's request and as soon as reasonably possible:
(1)  obtain the policy from the insurer;  and
(2)  deliver the policy to the insured to replace the certificate, cover note, or other confirmation of insurance previously issued.
(c)  A surplus lines agent may not deliver the evidence of insurance described by Subsection (a), or purport to insure or represent that insurance will be or has been granted by an eligible surplus lines insurer, unless the agent:
(1)  has prior written authority from the insurer for the insurance;  or
(2)  has received information from the insurer in the regular course of business that:
(A)  the insurance has been granted;  or
(B)  an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter C. Requirements and Procedures for Issuance of Surplus Lines Documents › Section 981.104. Delivery to Insured of Revised Surplus Lines Documents

Sec. 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 current status of the coverage and the insurers responsible for that coverage if, after the delivery of the original document, a change is made:
(1)  to the identity of the insurers;
(2)  to the proportion of the direct risk assumed by the insurer as stated in the original document;  or
(3)  in any other material respect as to the insurance coverage evidenced by the document.
(b)  A change made under Subsection (a) may not result in coverage or an insurance contract that would violate this chapter or Chapter 225, if originally issued on that basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.129, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter D. Surplus Lines Stamping Office › Section 981.151. Status as Nonprofit Association

Sec. 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.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter D. Surplus Lines Stamping Office › Section 981.152. Board of Directors

Sec. 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 commissioner.  Four members must represent the public and have a minimum of three years of experience in purchasing commercial insurance.  A public representative may not:
(1)  be an officer, director, or employee of an insurer, insurance agency, agent, broker, solicitor, or adjuster or any other business entity regulated by the department;
(2)  be a person required to register under Chapter 305, Government Code;  or
(3)  be related to a person described by Subdivision (1) or (2) within the second degree by affinity or consanguinity.
(c)  A board member serves a term as established in the plan of operation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter D. Surplus Lines Stamping Office › Section 981.153. Plan of Operation

Sec. 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 terms of the members of the board of directors of the office.
(b)  The stamping office shall submit any amendment to the plan of operation to the commissioner.  An amendment to the plan of operation is effective on approval by commissioner order.
(c)  If the stamping office fails to submit a suitable amendment to the plan of operation, the commissioner may, after notice and hearing, adopt:
(1)  an amendment to the plan of operation;  and
(2)  any rules necessary or advisable to implement this subchapter.
(d)  A rule adopted under Subsection (c) continues until:
(1)  modified by the commissioner;  or
(2)  superseded by an amendment to the plan of operation submitted by the stamping office and approved by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas › Chapter 981 - Surplus Lines Insurance › Subchapter D. Surplus Lines Stamping Office › Section 981.154. Powers and Duties

Sec. 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 the plan of operation:
(1)  receive, record, and review each surplus lines insurance contract that a surplus lines agent is required to file with the office;
(2)  provide to the commissioner an evaluation of the eligibility of each surplus lines insurance contract and surplus lines insurer;
(3)  prepare monthly reports for the commissioner relating to surplus lines insurance obtained during the preceding month in a form prescribed by the commissioner;
(4)  prepare reports for the commissioner relating to surplus lines business;
(5)  collect from each surplus lines agent a stamping fee for the costs of operations to be paid by the insured and determined by the department in an amount not to exceed three-fourths of one percent of gross premium resulting from surplus lines insurance contracts;
(6)  employ persons;
(7)  borrow money;
(8)  enter into contracts;
(9)  perform any other acts to facilitate or encourage compliance with this chapter and rules adopted under this chapter;  and
(10)  provide any other service incidental or related to an office purpose.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.