Procedural Updates

The 2023 Annual Late Filing report will be generated on Monday, March 18, 2024. As a reminder, policies are considered late if not filed with SLTX within 60 days of issue date or the effective date, whichever is later.

In compliance with the Texas Administrative Code, SLTX must submit the report each year to the Texas Department of Insurance (TDI) no later than the first business day in April. Once the report is sent to TDI, no additional changes can be made. Previously approved adjustments on policies included on a monthly late filing report should be considered timely filed, and will not be included on the annual report.

As you receive SMART’s email notification on March 18th, you may access the 2023 Annual Late Filing Report in SMART. You can find SMART’s “how to” user guide by following this link. SLTX will send the official Annual Late Filing Report by certified mail to agents and agencies included in the report. Those who are not included in the report will not see it listed in SMART and will not receive a letter from SLTX.

The report will include:

• A list of all late policies,

• Number of days late for each,

• Total percentage of late policies for the year,

• A calculation of total fees due and,

• Number of policies sent to enforcement, if any.

Assessments and enforcement actions are determined by statute (6 TIC 981.105) and all fees should be submitted directly to TDI. The TDI Late Filers Fee Payment Form will be included within the certified mailing.

The December 2023 SMART release includes the following:

New Features!

• Initial stage of Policy Audit workflow being integrated into SMART. Stay tuned as recognizable features are rolled out over the next few releases.
• Initial stage of Notifications (bell icon) being integrated into SMART. As new and updated features are released, they may include notifications directly within SMART.

Improvements:

• Consistent formatting of Premium and Total Gross amounts within Policies Search Results grid and from the “Find a Policy” grid (within Filing)
• Clarity on 5-year retention period of API/XML files
• Consistent display of default dates for Inception Date Change Endorsements
• Improved error tag assignment when submitting Lloyd’s Syndicates / Underwriters at Lloyds where required data is missing or transposed
• Consistent handling of back-end processes when users make corrections from the Outstanding Errors (Tags) page

SLTX will release process improvements and/or enhancements as available. Visit Training Videos & Guides page to access all user guides or supplemental video components for each transaction or feature in SMART (including API technical and user guides). Need additional support? Sign up for an online support session, or a full walk-though of SMART’s features tailored to your agency’s business / workflows. Or an API / XML support session for technical assistance with API (automated) filings and/or SMART Connector processes.

The November SMART release includes the following:

New Features!

• Monthly Late Filing Report is now fully integrated in SMART. The Legacy version will no longer be generated as of November 2023 Month End.
• Users can now see a transaction’s Premium and Total Gross amounts from the Policies Search Results grid and from the “Find a Policy” grid (within Filing). These values can be toggled off by unchecking the item from the “Display” feature on the corresponding page(s).
• Users can obtain a list of available coverage and class codes in an Excel format by clicking “Export” from the Coverage or Class search screens
• Users will receive a warning when attempting to make a filing under an expired surplus lines license
• Users can search by an insurer’s Previous TDI license Number from Insurers Advanced Search
• Phase 1 – email notification when agency/user has one or more outstanding errors / tags

Improvements:

• Better handling of “Save as PDF” confirmation after deleting a pending
• Improved context for displayed batch status for API batches in a “Manual” state

SLTX will release process improvements and/or enhancements as available.

Visit Training Videos & Guides page to access all user guides or supplemental video components for each transaction or feature in SMART (including API technical and user guides). Need additional support? Sign up for an online support session, or a full walk-though of SMART’s features tailored to your agency’s business / workflows. Or a support session for technical assistance with API (automated) filings and/or SMART Connector processes.

On October 31, 2023, Texas Department of Insurance Commissioner Cassie Brown signed an Order decreasing the stamping fee from the current rate of .075% to .04%. The fee reduction aligns with the recommendation submitted to the Commissioner by the SLTX Board in March 2023. The new fee will become effective January 1, 2024.

By close of business, November 2, 2023, SLTX will accept filings with an effective date of 01/01/2024 or later. SLTX will resume acceptance of transactions with the standard lead time of 90 days. SLTX does not expect any late filings to be generated given the January 1st timing of the fee change and the standard 90-day lead-time.

The new stamping fee rate will apply to new or renewal surplus lines policies with an effective date on or after January 1, 2024. It will also apply to policy date extensions on or after this date. Policies effective on or before December 31, 2023, will run to expiration, cancellation, or next annual anniversary date (for multi-year policies) at the existing rate of 0.075%. This includes any subsequent endorsements, audits, cancellations, reinstatements, installments, and monthly or quarterly reports.

The delayed September SMART release includes the following:

New Features!

• Users can now correct any pending, other than pending reversals, deletes, or updates, from the Outstanding Errors (Tags) page (click “pencil icon” in Actions column)
• Users can now delete any pending directly from the Outstanding Errors (Tags) page
• API Batches containing all pending transactions may be deleted via API
• All rules for coverage and class code are now enforced for API filers. You will encounter an error / tag when submitting a filing with a coverage code not “in a relationship” with a specific class code. For example, submitting a residential coverage code such as “Homeowners” with a commercial class code such as “Restaurants”.

Improvements:

• “Invite New User” workflow now sends 2^nd email to re-state assigned user ID
• Consistent handling of some data points for child transactions adopted by Policy Replacing Binder
• Ineligibility icons consistently cleared with reversals or policy replacing binder
• Performance when deleting large number of pending items through existing SMART UI
• Phase 2 of changes to API Batch status when posting fails / encounters a timeout (allowing re-post)

SLTX will release process improvements and/or enhancements as available.

Visit Training Videos & Guides page to access all user guides or supplemental video components for each transaction or feature in SMART (including API technical and user guides). Need additional support? Sign up for an online support session, or a full walk-though of SMART’s features tailored to your agency’s business / workflows. Or a support session for technical assistance with API (automated) filings and/or SMART Connector processes.

TDI has filed a proposal to add additional commercial lines of property and casualty insurance to the rate and form filing requirements as authorized by Senate Bill 1367 (87R, 2021). As a reminder, 6 TIC 981.004(g) indicates that a diligent effort is not required for the commercial coverages outlined within the sections initially modified by SB1367 and included within this latest proposal (10 TIC 2251.0031(a) and (c): and 10 TIC 2301.0031(a) and (c)).

This proposal allows for a public comment period through November 6, 2023. View the proposal for the full text and how to submit comments.

For other dates and documents related to this action, visit TDI’s 2023 rules webpage.

In March 2023, SLTX’s Board of Directors made a recommendation to the Texas Department of Insurance (TDI) to reduce the stamping fee from the current rate of 0.075% of gross premium to 0.04% effective 1/1/2024.

On September 22, 2023, TDI published a Notice of Recommendation to Decrease the Stamping Fee Rate for the Surplus Lines Stamping Office of Texas, which allows for a public comment period through October 12, 2023. Click the above link to view the publication and information about the comment period, which includes details about where to make comments.

Until TDI provides feedback with the new rate and effective date, SLTX will not accept any filing with an effective date of 01/01/2024 or later. This will allow SLTX to be proactive in applying the current stamping fee rates while not accepting transactions where a new rate might apply. To facilitate this change, SLTX will be reducing the number of lead-days allowed for making a future filing from 90 days to 45 days. Submitted transactions with an effective date later than 45 days (in advance) will be tagged (errored). Once fee approval is received from TDI, SLTX will resume its acceptance of transactions with the standard lead-time of 90 days.  At that time, any tagged (errored) transactions should be resubmitted for processing. Given the lead-time, SLTX does not expect that any late filings to be generated due to this change.

To add clarity to the timing and application of the proposed new rate: The proposed new stamping fee rate will apply to each new or renewal surplus lines policy with an effective date on or after January 1, 2024. The proposed new rate will also apply to policy date extensions if effective on or after this date. Policies effective on or before December 31, 2023, will run to expiration, cancellation, or next annual anniversary date (for multi-year policies) at the existing rate of 0.075%. This includes any subsequent endorsements, audits, cancellations, reinstatements, installments, and monthly or quarterly reports.

The delayed August SMART release includes the following:

New Features!

• Users can now correct any pending, other than pending reversals, deletes, or updates, from the API Details page (click “Correct Errors”) or from the Policy Details page (click “Edit”)
• Users can now delete any API pending directly from the API Details or Upload Details pages
• Pending transactions will no longer be created for duplicate API submissions, by policy number, effective date, and CustomID, where a previous API submission has been made
• TEST Environment only: All rules for coverage and class code are now enforced for API filers. SMART’s next release will deploy this feature to the LIVE environment, which is scheduled no sooner than Friday, October 13, 2023, allowing time for necessary corrections. See previous notification for additional details.

Improvements:

• Catalog ID now shown on API Upload Details page
• Better handling when correcting API pending(s) for name, policy number, or date changes to display both the old and new values during the correction process
• Better handling of Previous Uploads page to better manage Load times for agents with exceptionally large number of API submissions
• Handling of one-time migration process for Continuous Until Cancelled “dummy renewals” with existing Agent of Record
• Consistent labeling of SLTX ID from Policies Detail page
• Consistent results when searching for an invalid batch number from the Upload API page
• Consistent handling of Contract “edits” when the insurer has had a TDI Company Number change
• Indicator icons added: API filing brokers, Broker with expired license

SLTX will release process improvements and/or enhancements as available.

Visit Training Videos & Guides page to access all user guides or supplemental video components for each transaction or feature in SMART (including API technical and user guides). Need additional support? Sign up for an online support session, or a full walk-though of SMART’s features tailored to your agency’s business / workflows. Or a support session for technical assistance with API (automated) filings and/or SMART Connector processes.