1. (a) Surplus lines insurers seeking eligibility shall provide to the department and to the stamping office, information relating to the insurer's eligibility to write surplus lines insurance. Such information shall include:

   1. (1) National Association of Insurance Commissioners (NAIC) Annual Statement (association edition, yellow cover), Quarterly Statements, SEC 10K Reports, and audited financial statements of United States domiciled companies and audited financial statements expressed in U.S. dollars for companies domiciled outside the United States;
   2. (2) documents evidencing authorization from the insurer's domicillary jurisdiction to write the same kind and class of business that it proposes to write in Texas;
   3. (3) documents evidencing the existence and amount of United States trust funds of alien insurers;
   4. (4) a certified actuarial opinion regarding the adequacy of the insurer's loss reserves;
   5. (5) biographical affidavits of owners, officers, directors and management;
   6. (6) a three-year business plan discussing the insurer's plan of operation in Texas;
   7. (7) NAIC's Insurance Regulatory Information System (IRIS) ratio reports, accompanied by management's explanation of the insurer's IRIS ratios outside the allowed ranges and a description of any related corrective action;
   8. (8) for foreign companies only, a copy of its latest Examination Report from the insurer's state of domicile;
   9. (9) for alien companies listed with the NAIC's International Insurance Department (IID), a copy of its annual IID filing; and
   10. (10) a list of currently used and proposed to be used Texas surplus lines agents.

2. (b) Except as specified in paragraphs (1) and (2) of this subsection, foreign surplus lines insurers shall submit annually to the department and the stamping office the material identified in subsection (a) of this section by March 31.

   1. (1) Audited financial statements and SEC 10K Reports shall be annually submitted to the department by June 1.
   2. (2) Quarterly financial reports shall be submitted to the department within 45 days of the end of each calendar quarter.
3. (c) Alien surplus lines insurers shall submit annually to the department and the stamping office the material identified in subsection (a) of this section by June 1, except the IID filing and the actuarial opinion shall be annually submitted to the department by August 1.

4. (d) In addition, surplus lines insurers or their representatives shall provide other information relevant to the determination of eligibility that is requested by the department or the stamping office. The surplus lines insurer, agent, or representative shall be permitted at least 10 days to respond, after receipt, to a request for additional information or documentation. Failure by the surplus lines insurer or agent to submit the information requested in a timely manner shall be grounds for a denial or termination of eligibility to write surplus lines insurance in this state. Nothing herein shall interfere with the department's rights to require additional information or documentation or to examine or inspect records. Other relevant information includes, but is not limited to, the following:

   1. (1) activities of management and agents;
   2. (2) history and competency of reinsurers;
   3. (3) pattern of claims services;
   4. (4) domestic trust agreements; and
   5. (5) powers of attorney.
5. (e) Information received under this section is subject to Government Code §§552.001-552.132.
6. (f) The stamping office shall report to the department whether insurers have submitted evidence that appears to be satisfactory evidence for eligibility under this section and the Texas Insurance Code.
7. (g) Upon receiving reports under subsection (f) of this section, the department shall determine if satisfactory evidence of eligibility has been presented and shall notify the surplus lines insurer of the department's determination.
8. (h) Each surplus lines insurer shall continuously maintain its eligibility.
9. (i) The department, stamping office, and commissioner have no duty or responsibility under the Insurance Code, this section or §15.101 of this title (relating to Plan of Operation of the Surplus Lines Stamping Office of Texas) to determine the actual financial condition or claims practices of any surplus lines insurer.
10. (j) A list of surplus lines insurers that have provided satisfactory evidence of eligibility shall be maintained by the department as public information. This list shall contain sufficient information to inform the public of the limitations of the department's authority with regard to surplus lines insurers and the relevant differences between surplus lines insurers and admitted insurers.

Source Note:The provisions of this §15.8 adopted to be effective December 12, 2000, 25 TexReg 12179.