83R18757 TJS-F
	By: Smithee	H.B. No. 1405

	A BILL TO BE ENTITLED
	AN ACT
	relating to the collection of surplus lines insurance premium taxes
	for insurance placed with a managing underwriter.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 225.006, Insurance Code, is amended to
	read as follows:
	Sec. 225.006.  COLLECTION OF TAX BY AGENT. (a) Except as
	otherwise provided by this section, the [The] surplus lines agent
	shall collect from the insured the tax imposed by this chapter at
	the time of delivery of the cover note, certificate of insurance,
	policy, or other initial confirmation of insurance and the full
	amount of the gross premium charged by the eligible surplus lines
	insurer for the insurance.
	(b)  Subject to Subsection (c) and notwithstanding
	[Notwithstanding] any other law, if a surplus lines agent [that]
	places an insurance policy with a managing underwriter, as defined
	by Section 981.002, the managing underwriter shall collect, report,
	and pay the tax imposed by this chapter.
	(c)  A surplus lines agent and a managing underwriter may
	enter into an agreement to provide that the surplus lines agent is
	responsible for filing, reporting, collection, payment, and all
	other requirements imposed by this chapter and Chapter 981,
	including the requirement to pay the tax and file the tax report
	imposed by this chapter. An agreement under this subsection must be
	in writing and must be entered into at or before the time coverage
	is bound under the policy. The agreement may apply to multiple
	policies or all policies between a surplus lines agent and a
	managing underwriter.
	SECTION 2.  Sections 981.105(a) and (b), Insurance Code, are
	amended to read as follows:
	(a)  Not later than the 60th day after the later of the
	effective date or the issue date of new or renewal surplus lines
	insurance, a surplus lines agent responsible under Section 225.006
	for the filing, reporting, collection, payment, and other
	requirements imposed by Chapter 225 shall file with the stamping
	office:
	(1)  a copy of the policy issued; or
	(2)  if the policy has not been issued, a copy of the
	certificate, cover note, or other confirmation of insurance
	delivered to the insured.
	(b)  The [A] surplus lines agent described by Subsection (a)
	shall also promptly file with the stamping office:
	(1)  a copy of each substitute certificate, cover note,
	or other confirmation of insurance delivered to an insured;
	(2)  a copy of each endorsement of an original policy,
	certificate, cover note, or other confirmation of insurance
	delivered to an insured; and
	(3)  a memorandum from the agent informing the stamping
	office of the substance of any change represented by a document
	described by Subdivision (1) or (2), as compared with the original
	coverage.
	SECTION 3.  Section 981.213, Insurance Code, is amended to
	read as follows:
	Sec. 981.213.  FILING CONTRACT WITH STAMPING OFFICE. A
	surplus lines agent responsible under Section 225.006 for the
	filing, reporting, collection, payment, and other requirements
	imposed by Chapter 225 shall report to and file with the stamping
	office a copy of each surplus lines insurance contract as provided
	in the stamping office's plan of operation. The department may
	accept that filing instead of the filings required under Section
	981.105.
	SECTION 4.  Section 981.215(a), Insurance Code, is amended
	to read as follows:
	(a)  A surplus lines agent shall maintain a complete record
	of each surplus lines contract obtained by the agent, including any
	of the following, if applicable:
	(1)  a copy of the daily report;
	(2)  the amount of the insurance and risks insured
	against;
	(3)  a brief general description of the property
	insured and the location of that property;
	(4)  the gross premium charged;
	(5)  the return premium paid;
	(6)  the rate of premium charged on the different items
	of property;
	(7)  the contract terms, including the effective date;
	(8)  the insured's name and post office address;
	(9)  the insurer's name and home office address;
	(10)  the amount collected from the insured; [and]
	(11)  an agreement under Section 225.006(c); and
	(12)  any other information required by the department.
	SECTION 5.  Section 981.223(a), Insurance Code, is amended
	to read as follows:
	(a)  A managing underwriter with whom an insurance policy is
	placed in the manner described by Section 225.006(b) shall maintain
	appropriate records and make the records available for inspection
	by the department and the comptroller, including records of:
	(1)  the name and address of the insured;
	(2)  the policy number and policy period;
	(3)  the name of the eligible surplus lines insurer;
	(4)  the gross premium charged for the insurance;
	(5)  the name of the surplus lines agent who placed the
	policy with the managing underwriter;
	(6)  the license number of the surplus lines agent who
	placed the policy with the managing underwriter; and
	(7)  an agreement, if any, under Section 225.006(c)
	that applies to the policy [documentation that the managing
	underwriter has transmitted to the surplus lines agent written
	confirmation of the agent's written agreement to act as the agent
	for the placement of the policy and be responsible for all filing,
	reporting, collection, and payment requirements imposed by this
	chapter and by Chapter 225].
	SECTION 6.  This Act takes effect January 1, 2014.