(a) A surplus lines agent doing 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's license. A surplus lines agent doing business
under an assumed name must comply with §19.902 of this title (relating
to One Agent, One License).
(b) An insurance agency doing business as a partnership, corporation,
or limited liability company may have the issuance of its surplus lines license
evidenced by a single certificate license, provided that such agency has the
qualifications and has been issued a license pursuant to the Texas Insurance
Code for either a general property and casualty agent or a managing general
agent. The surplus lines agent's license shall 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 Texas Insurance Code. No partnership,
corporation, or limited liability company may receive more than one surplus
lines agent's 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 done in placing or servicing a surplus lines
insurance contract under an assumed name shall also clearly disclose the true
name of the surplus lines agent or agency acting under such 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 such assumed name.
(d) No surplus lines agent or agency shall shift, transfer,
delegate, or assign his or her responsibility to a person or persons not licensed
as a surplus lines agent.
(e) 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 such eligible surplus lines
insurer granting such 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 the department. 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.
(f) A surplus lines agency may exercise claims authority on
behalf of an eligible surplus lines insurer if the surplus lines agent possesses
a current written agreement from each such eligible surplus lines insurer
granting such authority. All claims adjustments shall be performed by a Texas
licensed adjuster. The written agreement must be available for review by the
department. 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 such payments.
Partial payments to claimants by the surplus lines agent made pursuant to
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 wherein the
insurer authorizes such direct payments. This written agreement must be available
for review by the department.


Source Note: The provisions of this §15.6 adopted to be effective December 12, 2000, 25 TexReg 12179