(a) A surplus lines agent engaging in surplus lines
business as an individual surplus lines agent may be licensed only
in his or her name. No individual may hold more than one surplus lines
agent license. A surplus lines agent engaging in surplus lines business
under an assumed name must comply with §19.902 of this title.
(b) An insurance agent doing business as a partnership,
corporation, or limited liability company may apply for and obtain
a surplus lines license, provided that the agent meets the qualifications
and has been issued a license under the Insurance Code as either a
general property and casualty agent or a managing general agent, except
when Insurance Code §981.203(a-1) is applicable. The surplus
lines agent license will be issued to a partnership, corporation,
or limited liability company in the name of the agency as indicated
on the underlying license issued under the Insurance Code. No partnership,
corporation, or limited liability company may receive more than one
surplus lines agent license. A partnership, corporation, or limited
liability company doing business under an assumed name must comply
with §19.902 of this title.
(c) Every act in placing or servicing a surplus lines
insurance contract under an assumed name must also clearly disclose
the true name of the surplus lines agent acting under the assumed
name, or the true name of the individual licensed surplus lines agent
representing the surplus lines agency, partnership, corporation, or
limited liability company acting under the assumed name.
(d) A surplus lines agent may not shift, transfer,
delegate, or assign his or her responsibility to a person or persons
not licensed as a surplus lines agent. A surplus lines agent may not
file with the stamping office a policy for a transaction in which
the surplus lines agent did not place the policy.
(e) Notwithstanding subsection (d) of this section,
a surplus lines agent may contract with a third-party to meet the
requirements of Insurance Code §981.105(a) and (b) to file policies
with the stamping office, but the agent remains responsible for the
timeliness and accuracy of the filings including payment of any fees
owed and any penalties assessed for policies that were not timely
filed.
(f) A surplus lines agent may exercise underwriting
authority on behalf of an eligible surplus lines insurer if the surplus
lines agent possesses a current written agreement from each eligible
surplus lines insurer granting that authority. The written agreement
must set forth the identity of the insurer and the scope of the underwriting
authority granted, and must reserve the duty of final underwriting
review by the insurer. The underwriting agreement must be available
for review by TDI. The underwriting authority granted to a surplus
lines agent by the insurer may include the rating and acceptance of
risks, binding of coverage, issuance of formal evidence of coverage,
and cancellation of coverage.
(g) A surplus lines agent may exercise claims authority
on behalf of an eligible surplus lines insurer if the surplus lines
agent possesses a current written agreement from the eligible surplus
lines insurer granting authority. A Texas-licensed adjuster must perform
all claims adjustments unless the policy covers risks in multiple
states and the claim is for a loss on a non-Texas risk. The written
agreement must be available for review by TDI.
(1) Claims authority delegated to the surplus lines
agent by the insurer may include, but is not limited to, the investigation,
adjustment, supervision, and payment of claims, including payment
from the surplus lines agents' funds, provided the agent is promptly
reimbursed by the insurer for the payments.
(2) Partial payments to claimants by the surplus lines
agent made under the written agreement do not relieve the surplus
lines insurer of any continuing obligations to the insured. Payment
of claims may also be made by the surplus lines agent directly from
funds of the eligible surplus lines insurer, provided the surplus
lines agent possesses a current written agreement that the insurer
authorizes the direct payments. This written agreement must be available
for review by TDI.
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