Proposed Stamping Fee Rate Reduction – Second Stage

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.