Procedural Updates

On September 8, 2015, the Commissioner signed the order for the rate to be increased to .15% (.0015) from .06% (.0006), effective January 1, 2016.

The increased stamping fee rate will apply to each new or renewal surplus lines policy with an effective date on or after January 1, 2016. The new rate will also apply to policy date extensions if effective on or after this date. Policies effective on or before December 31, 2015 will run to expiration, cancellation, or next annual anniversary date (for multi-year policies) at the old rate of .06%. This includes any subsequent endorsements, audits, cancellations, reinstatements, installments, and monthly or quarterly reports.

In June 2015 the Board of Directors of the Surplus Lines Stamping Office of Texas approved a resolution recommending to the Commissioner of Insurance an increase in the stamping fee rate charged on gross premium of Texas surplus lines policies. Notice of this request was published in the Texas Register on July 31, 2015.

Lone Star Lines
Volume 21, July – September

Lone Star Lines
Volume 21, April – June

Lone Star Lines
Volume 21, January – March & Special Report

On February 12, 2015 eligible surplus lines insurers were directed by Commissioner’s Bulletin #B-0003-15 to report to the Texas Department of Insurance (TDI) the number of policies in force in Texas as of December 31, 2014. The deadline for providing this information is March 1, 2015.

In years past, the Surplus Lines Stamping Office of Texas has responded to this request on behalf of surplus lines insurers. For several years now, more and more insurers have been reporting their own information to TDI. This year, we plan to prepare the policy count report for insurers, but insurers should then self-report that information to TDI. As always, we are available to answer questions regarding the policy counts reflected in our database. Our report will be run the last week in February 2015. Please refer questions to SLTX at (512) 531-1880.

By this time, you should have received the last of the monthly late filing reports for 2014. If you file using the Electronic Filing System (EFS), these reports were no longer mailed to you beginning with the September report, but rather they were available through the EFS. The annual report will be available the same way. It is important that you review all the reports carefully for any transactions you believe are appearing in error. If you file using the EFS, you should use the “Correction Re-Entry tieback” option for any necessary corrections. If you file by paper, you need to provide us with appropriate documentation to confirm the item in question is not late so it can be adjusted before the annual report is run. If you delay too long before resolving these “false-positive” transactions, it will be too late to have them resolved. They must be resolved prior to the running of the annual late filers report. The annual late filers report will be run on March 10, 2015.

Effective May 28, 2011, Texas Insurance Code Section 981.105 specifies the regulatory remedies the Commissioner may take for late-filed surplus lines policies. Section 981.105 provides two authorized remedies for surplus lines agents who file policies late: fees and enforcement actions. These will be determined from the 2014 annual late filing report.

Lone Star Lines
Volume 20, October – December

Lone Star Lines
Volume 20, July – September