Texas § IN.981.002 - DEFINITIONS

§ IN.981.002. DEFINITIONS

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.