Report: Vast Majority of Surplus Lines Filings in Texas Come in on Time
An overwhelming majority of surplus lines policies are filed on time in Texas, according to the Surplus Lines Stamping Office of Texas.
SLTX is required by statute to file an Annual Late Filers report with the Texas Department of Insurance, which details every late policy filing in the previous calendar year.
After evaluating the data on policies filed in 2015, SLTX found that a mere 1.72 percent of surplus lines policies were filed late. This number is consistent with low percentages of late filings in previous years.
Surplus lines policies are considered late if they are filed more than 60 days after the effective date or issue date of the policy, whichever is later. Once the Annual Late Filers report is submitted, TDI may assess fees and penalties upon agents, in accordance with the Texas Insurance Code section 981.105.
Brokers who have received notification that a policy has been filed late can request an adjustment if they believe the notification was made in error. Adjustments are considered until March of the following year and are granted based on evidence provided to SLTX. After the Annual Late Filers report is published in March, TDI handles these disputes directly with recommendations from SLTX based on evidence submitted by the agents.
Agents who file their policies online can view the status of those policies digitally through the Electronic Filing System, while those who file policies through standard postal mail will receive a monthly notice of any late policies.
SLTX found that 1,018 agents filed 367,370 policies in 2015, and of these, 6,304 of the policies were filed late. Further, 335 of the 522 agents who submitted a policy after the 60-day deadline had submitted a policy late in the past.
SLTX also found that 383 of the agents who filed policies late in 2015 were non-residents, which means their home office is outside the state of Texas.
The information on late policies filed in 2016 will not be available until March 2017, when SLTX submits its annual report to TDI. In the event of any discrepancies, agents are encouraged to handle disputes promptly with SLTX directly to avoid appearing on the Annual Late Filers report.
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