(a) Before placing insurance with an eligible surplus lines
insurer, a surplus lines agent shall make a reasonable inquiry into the financial
condition and operating history of the insurer.
(b) During the course of placing coverage with an eligible
surplus lines insurer, each surplus lines agent shall be under a continuous
duty to stay informed of the insurer's solvency and the soundness of its financial
strength, and of the insurer's ability to process claims and pay losses expeditiously.

(c) A surplus lines agent shall immediately inform the department
and the stamping office whenever the agent has grounds to reasonably doubt
the capacity, competence, stability, claim practices, or business practices
of an eligible surplus lines insurer.
(d) A surplus lines agent shall immediately inform the department
and the stamping office whenever the agent has reasonable grounds to believe
that an unauthorized insurer is illegally transacting the business of insurance
in this state.
(e) A surplus lines agent shall place surplus lines insurance
on Texas risks only with an eligible insurer that meets the requirements of
the Texas Insurance Code and the department's rules.


Source Note: The provisions of this §15.9 adopted to be effective December 12, 2000, 25 TexReg 12179