The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Admitted or authorized insurer--An insurer that is doing the business of insurance in this state as defined in the Texas Insurance Code, and is licensed under the provisions of the Texas Insurance Code.
2. (2) Eligible surplus lines insurer--An unlicensed insurer allowed by the commissioner to do business in Texas as a surplus lines insurer.
3. (3) Licensee--A person holding a surplus lines agent's license.
4. (4) Person--An individual or entity as defined by the Texas Insurance Code Article 21.21, §2(a).
5. (5) Properly allocated and apportioned--The division or distribution of premium based upon the location of the various exposures afforded coverage under the insurance contract. This distribution of premium must be in accordance with the methods prescribed by the Comptroller of Public Accounts of Texas (the comptroller).
6. (6) Stamping Office--The Surplus Lines Stamping Office of Texas created under the Texas Insurance Code, and operating under the plan of operation specified by §15.101 of this title (relating to the Plan of Operation of the Surplus Lines Stamping Office of Texas).
7. (7) Surplus lines agent or agency--An agent or agency holding a surplus lines license issued by this department pursuant to the Texas Insurance Code Article 1.14-2.
8. (8) Surplus lines agent of record--The Texas licensed surplus lines agent placing a policy with an eligible surplus lines insurer or the Texas licensed surplus lines agent transacting business directly with an unlicensed out-of-state agent to obtain coverage with an eligible surplus lines insurer. The agent or agents in these situations are the agent of record for their portion of the premium for the policy placement.
9. (9) Taxable surplus lines premium--For surplus lines taxation purposes, except for exempt or federally pre-empted premiums, surplus lines premium is taxable as provided in Texas Insurance Code Article 1.14-2, §12.
10. (10) Unauthorized insurer--An insurer that is conducting the business of insurance as defined in the Texas Insurance Code and is not licensed or an eligible surplus lines insurer under the Texas Insurance Code.
11. (11) Client--Any person to whom a surplus lines agent sells or attempts to sell a surplus lines insurance policy or from whom an application for surplus lines insurance is accepted or to whom advice and counsel on a surplus lines insurance policy is given for the purpose of selling a surplus lines insurance policy.

Source Note:The provisions of this §15.2 adopted to be effective December 12, 2000, 25 TexReg 12179; amended to be effective October 21, 2002, 27 TexReg 9773.