(a) The stamping office shall evaluate surplus lines insurance
policies, contracts, or other evidences of coverage for eligibility and compliance
with filing requirements. The stamping office may request additional information
from the surplus lines agent responsible for the filing if the information
filed is not sufficient to make an evaluation in accordance with this section.

(b) The stamping office shall provide a written report to the
department of any surplus lines insurance policy or contract appearing to
be ineligible under the Texas Insurance Code after evaluation under this section.
The stamping office shall attempt to have the surplus lines agent correct
any administrative or technical errors prior to a written report to the department.
If voluntary compliance cannot be obtained, the stamping office shall promptly
provide a written report to the department. In any event, the stamping office
shall provide a written report to the department of any policy issued by an
ineligible insurer or any major and improper conduct by a surplus lines agent,
whether or not such violation is later corrected.
(c) Notice by the department of intention to institute disciplinary
action may be provided to the holder of the license upon receipt of the report
and determination that the coverage may not be eligible for surplus lines.



Source Note: The provisions of this §15.7 adopted to be effective December 12, 2000, 25 TexReg 12179