Texas § IN.981.217 - NOTICE TO DEPARTMENT REQUIRED

§ IN.981.217. NOTICE TO DEPARTMENT REQUIRED

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 due for more than 90 days to an eligible surplus lines insurer or for more than 60 days to the agent acting on behalf of the surplus lines insurer exceed $1 million or 10 percent of the insurer's policyholder surplus calculated on December 31 of the preceding year; (2) balances due for more than 60 days from a managing general agent or a local recording agent appointed by or reporting to the managing general agent exceed $500,000; (3) authority to settle claims for an eligible surplus lines insurer is withdrawn; (4) funds held for an eligible surplus lines insurer for losses are greater than $100,000 more than the amount necessary to pay losses and loss adjustment expenses expected to be paid on behalf of the insurer in the next 60-day period; or (5) the agent's contract to act on behalf of a surplus lines insurer is canceled or terminated. (b) The commissioner shall adopt the form to be used under Subsection (a). (c) A surplus lines agent may comply with the notification requirement under Subsections (a)(1), (2), and (4) by submitting a single annual report if: (1) the agent or applicable eligible surplus lines insurer routinely operates beyond the limits provided by those subdivisions; and (2) the commissioner verifies that fact under a procedure adopted by the commissioner. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.