| (a) Qualifications. (1) An individual is eligible to perform the functions of an originating agent for a MAP applicant if the individual, at the time the application to the MAP is completed, is duly licensed by the Department as a local recording agent or is a salaried representative for an insurer whose plan of operation does not contemplate the use of local recording agents. (2) An individual is eligible to perform the functions of an issuing agent for an insurer voluntarily participating in the MAP if the individual is duly licensed by the Department as a local recording agent and is appointed to represent the insurer or is a salaried representative for an insurer whose plan of operation does not contemplate the use of local recording agents. (b) Functions of an originating agent. (1) The originating agent shall complete the application for assistance in obtaining residential property insurance on behalf of the MAP applicant. (2) The originating agent shall submit the application and documentation required by subsection (e) of §5.9406 of this plan of operation (also subsection (e) of §5.9406 of this title, relating to Eligibility for Referral) regarding cancellation, non-renewal, or declination to the MAP as soon as possible, but no later than the fifth business day following completion of the application. (3) Pursuant to Article 21.49-12 §4(f) of the Insurance Code, if the originating agent and the issuing agent are not the same person, the originating agent may not be held to be the agent of the insurer unless there is an appointment as specified by Article 21.14 of the Insurance Code. (c) Functions of an issuing agent. (1) The issuing agent shall perform all of the customary duties of a local recording agent including, but not limited to, the following: (A) signing, executing and delivering policies of insurance; (B) maintaining a record of the business; (C) examining and inspecting the risk; and (D) receiving and collecting premiums. (2) The issuing agent may also be the originating agent. (d) Agent commissions. (1) Originating agent's commission. (A) Pursuant to Article 21.49-12 §4(e) of the Insurance Code, the originating agent shall share commissions with the issuing agent. (B) The originating agent's share of the commission for the original policy term shall be as follows: $25 when the policy premium is $500 or less, and $50 when the policy premium is over $500. (C) If the issuing agent is a licensed local recording agent, the originating agent's share of the commission for policy renewals shall be 25 percent of the amount of the commission paid to the issuing agent by the insurer. If the issuing agent is a salaried representative, the originating agent's commission fee for policy renewals shall be $15. The renewal commission and renewal commission fee requirements shall apply only to policy renewals in which the insurer is the same insurer as when the original policy was issued through the MAP. (D) Within five working days after the issuance date of the insurance policy issued through the MAP, the insurer shall notify the Department by mail or facsimile transmission and the originating agent in writing or via electronic means that the insurance policy was issued. The notice shall include the insurance policy number and the name, address, telephone number, and fax number of the issuing agent. (E) The issuing agent shall be responsible for payment of the originating agent's share of the commission and commission fee as specified in subparagraphs (B) and (C) of this paragraph within 30 days after the date the commission payment is made to the issuing agent by the insurer. (2) Issuing agent's commission. The payment of the commission to the issuing agent is based on the contract or agreement between the insurer and the issuing agent. |
| Source Note: The provisions of this §5.9408 adopted to be effective October 1, 1996, 21 TexReg 8715; amended to be effective August 1, 1998, 23 TexReg 7587; transferred effective April 16, 1999, 24 TexReg 3092; amended to be effective June 26, 2000, 25 TexReg 6144 |
