1. (a) The commissioner may impose any sanction, including revoking, suspending or refusing to grant or renew the license of a surplus lines agent, that may be imposed under the Texas Insurance Code on a general property and casualty agent or a managing general agent, as appropriate to the license status of the surplus lines agent. Disciplinary action may be initiated against a surplus lines agent upon the occurrence of any one or more of the following:

   1. (1) any action which would form the basis for sanctioning a general property and casualty agent or a managing general agent, as applicable to the surplus lines agent's other license(s), under the Texas Insurance Code;
   2. (2) the failure to allow the department and the comptroller to examine the surplus lines agent's accounts and records or failure to maintain surplus lines insurance business accounts and records as required by the Texas Insurance Code and this subchapter;
   3. (3) the failure to make and file all reports when due as required by the Texas Insurance Code and this subchapter;
   4. (4) the failure to properly collect and pay required taxes and stamping fees on surplus lines gross premium or failure to submit tax reports as required by law or regulation;
   5. (5) the failure to procure and maintain a surety bond, if applicable, in accordance with this subchapter;
   6. (6) the failure to otherwise maintain the qualifications for a surplus lines license; or
   7. (7) the violation of any insurance law or regulation of this state.
2. (b) The agent's surplus lines license shall be cancelled in the event the agent fails to maintain or renew the agent's license as a general property and casualty agent or managing general agent, as appropriate to the license status of the agent.
3. (c) No surplus lines agent whose license has been revoked shall be licensed until all fines, penalties and delinquent taxes owed by the agent have been paid. The suspension of a surplus lines agent's license shall continue in effect until all fines, penalties, restitution, delinquent taxes, and delinquent stamping office fees owed by the agent have been paid.

Source Note:The provisions of this §15.5 adopted to be effective December 12, 2000, 25 TexReg 12179.