1. (a) Basis for suspension or refusal of surplus lines license. The commissioner may suspend or refuse to renew the license of a surplus lines agent upon any one or more of the following grounds:

   1. (1) failure to allow the commissioner to examine the agency's accounts and records or removal of the accounts and records of the agent's surplus lines business from this state during the period when such accounts and records are required to be maintained under the Insurance Code, Article 1.14-2, §15, and this chapter;
   2. (2) failure to make and file all reports when due as required by the Insurance Code, Article 1.14-2 and this chapter;
   3. (3) failure to properly maintain a gross premium tax trust account or failure to pay the tax on surplus lines gross premium or failure to submit the tax reports as provided for in the Insurance Code, Article 1.14-2, §12;
   4. (4) failure to procure and maintain a surety bond or other proof of financial solvency in accordance with the Insurance Code, Article 1.14-2, §2(2);
   5. (5) suspension or refusal to renew or continue the licensee as a local recording agent in accordance with the Insurance Code, Article 21.14, or a managing general agent in accordance with the Insurance Code, Article 21.07-3;
   6. (6) failure to maintain the qualifications for a surplus lines agent's license; or
   7. (7) violation of the provisions of the Insurance Code or the provisions of this chapter.
2. (b) Administrative procedure. In a proceeding to suspend, or for refusal to renew, the license of a surplus lines agent, the commissioner shall follow the same procedures as are applicable for the refusal or suspension of the underlying license of local recording agents under the Insurance Code, Article 21.14, §§16-19, or of managing general agents under the Insurance Code, Article 21.07-3, §§12-15, as applicable.
3. (c) Minimum period of suspension. No surplus lines agent whose license has been suspended shall again be relicensed until penalties or delinquent taxes owed by the agent have been paid.

Source Note:The provisions of this §15.5 adopted to be effective January 1, 1976; amended to be effective March 15, 1981, 6 TexReg 770; amended to be effective April 27, 1984, 9 TexReg 2083; amended to be effective November 10, 1988, 13 TexReg 5470.