1. (a) Before placing insurance with an eligible surplus lines insurer, a surplus lines agent shall make a reasonable inquiry into the financial condition and operating history of the insurer.
2. (b) During the course of placing coverage with an eligible surplus lines insurer, each surplus lines agent shall be under a continuous duty to stay informed of the insurer's solvency and the soundness of its financial strength, and of the insurer's ability to process claims and pay losses expeditiously.
3. (c) A surplus lines agent shall immediately inform the department and the stamping office whenever the agent has grounds to reasonably doubt the capacity, competence, stability, claim practices, or business practices of an eligible surplus lines insurer.
4. (d) A surplus lines agent shall immediately inform the department and the stamping office whenever the agent has reasonable grounds to believe that an unauthorized insurer is illegally transacting the business of insurance in this state.
5. (e) A surplus lines agent shall place surplus lines insurance on Texas risks only with an eligible insurer that meets the requirements of the Texas Insurance Code and the department's rules.

Source Note:The provisions of this §15.9 adopted to be effective December 12, 2000, 25 TexReg 12179.