1. (a) A surplus lines agent doing a surplus lines insurance business as an individual agent shall have his or her surplus lines certificate for individual agent issued in his or her name. No individual may receive more than one license. Such individual must furnish the State Board of Insurance with a certification showing any and all assumed names under which he or she does business.
2. (b) An insurance agency doing business as a partnership or corporation may have the issuance of its surplus lines license evidenced by a single certificate license, provided that such agency has the qualifications and has been issued a license pursuant to Article 21.14 (Local Recording Agents) or Article 21.07-3 (Managing General Agents). The license shall be issued in the same name of the agency as indicated on the underlying license issued under Article 21.14 or Article 21.07-3. No partnership or corporation may receive more than one license. Such partnership or corporation must furnish the State Board of Insurance with a certification showing any and all assumed names under which it does business.
3. (c) Every act done in the procedure of effecting a surplus lines insurance contract under an assumed name shall also clearly disclose the real name of the surplus lines agent licensee acting under such firm name or the name of the representative of the surplus lines agency, partnership, or corporation.

4. (d) No partnership or corporation may be issued a surplus lines license certificate in a name that:

   1. (1) is the same as or is so similar to the name or assumed name of any insurance company or agency licensed to do business in this state as to be likely to mislead the public; or
   2. (2) implies or is susceptible to the interpretation that it is an insurance company which assumes risks of insurance.
5. (e) No surplus lines agent or agency shall shift, transfer, delegate, or assign his responsibility to a person or persons not licensed as a surplus lines agent.
6. (f) A surplus lines agent may exercise underwriting authority on behalf of a nonadmitted insurer provided that the surplus lines agent shall possess, available for review, a current written agreement from each such nonadmitted insurer setting forth the identity of the insurer and the scope of the underwriting authority granted and reserving the duty of final underwriting review by the insurer. Underwriting authority may include the rating and acceptance of risks, binding of coverage, issuance of formal evidence of coverage, and the authority to cancel coverage.
7. (g) A surplus lines agent may exercise claims authority on behalf of a nonadmitted insurer provided that the surplus lines agent shall possess, available for review, a current written agreement from each such nonadmitted insurer granting such authority and provided that all claims adjustments shall be performed by a Texas licensed adjuster. Claims authority may include, without being limited to, the investigation, adjustment, supervision, and payment of claims including payment from the surplus lines agents' funds, provided that the agent is promptly reimbursed by the insurer for such payments and that the payments do not relieve the nonadmitted insurer of an obligation to the insured should it continue to exist. Payment of claims may also be made by the surplus lines agent directly from funds of the nonadmitted insurer provided that the surplus lines agent possesses, available for review, a current written agreement wherein the insurer authorizes such direct payments.

Source Note:The provisions of this §15.6 adopted to be effective January 1, 1976; amended to be effective March 15, 1981, 6 TexReg 770; amended to be effective August 15, 1984, 9 TexReg 4289.