Agent Name and Address on Surplus Lines Policies

A review of surplus lines policies filed with the Stamping Office indicates a surprising number do not have the name and address of the procuring surplus lines agent. This information is required by law. Article I .14-2, Section 7(a), Texas Insurance Code, states:

“Every new or renewal insurance contract certificate, cover note or other confirmation of insurance procured and delivered as a surplus lines coverage pursuant to this Article shall bear the name and address of the insurance agent who procured it….”

Under changes to the law effective September l, 1993, the agency name and address also must appear on any extension endorsement extending coverage beyond the original expiration date.

From the insured’s perspective, display of the agent’s name serves to confirm that the coverage was written through a licensed Texas surplus lines agent under the provisions of our state’s surplus lines law. It also removes any question as to which agent is responsible for diligent effort, payment of surplus lmes taxes and stamping fees, and other legal obligations assigned to the procuring surplus lines agent.

Please review your agency procedures to ensure that your name and address appear on all surplus lines policies you procure. Regrettably, failure to provide this information is generating an increasing number of tags from this office. Your assistance in complying with the law should reduce the volume of tags to be issued in the future.