Revised Wording in Mandatory Guaranty Fund Notice

Minor changes to the wording in the mandatory guaranty fund non-participation notice become effective as of April 1, 2009. This notice is required on all Texas surplus lines insurance policies, as stipulated in Sec. 981.101(b) of the Texas Insurance Code. The law also requires that the notice be printed in 11-point type. The revisions are necessary because the current language makes reference to certain sections of the Insurance Code that no longer exist, having been supplanted by updated versions of the laws.

For your information, the amended language of the notice is below, with the new wording underlined and the deleted wording lined out.

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 Article 21.28-C, Insurance Code. Section 12, Article 1.14-2 Chapter 225, Insurance Code, requires payment of a __________ (insert appropriate tax rate) percent tax on gross premium.