Tex. Ins. Code Section 981.007
Liability of Surplus Lines Insurer for Losses and Unearned Premiums

(a)

This section applies if:

(1)

an eligible surplus lines insurer has assumed a risk under this chapter; and

(2)

the surplus lines agent who placed the insurance has received the premium for that risk.

(b)

If a coverage question between the eligible surplus lines insurer and the insured arises regarding the assumed risk, the insurer is considered to have received the premium due for that coverage.

(c)

The eligible surplus lines insurer is liable to the insured for any:

(1)

loss covered by the insurance; and

(2)

unearned premium payable to the insured on cancellation of the insurance.

(d)

This section applies without regard to whether the surplus lines agent is indebted to the insurer regarding the insurance or for any other cause.

(e)

An eligible surplus lines insurer that assumes a risk under this chapter subjects itself to this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Source: Section 981.007 — Liability of Surplus Lines Insurer for Losses and Unearned Premiums, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­981.­htm#981.­007 (accessed Jun. 5, 2024).

981.001
Purpose 981.002
Definitions 981.003
Applicability of Chapter 981.004
Surplus Lines Insurance Authorized 981.005
Validity of Contracts 981.006
Sanctions 981.007
Liability of Surplus Lines Insurer for Losses and Unearned Premiums 981.008
Surplus Lines Insurance Premium Tax 981.009
Rules 981.0031
Exempt Commercial Purchaser Defined 981.0032
Qualified Risk Manager Defined 981.0033
Industrial Insured Defined 981.051
Authorization Required 981.054
Certain Preconditions Not Allowed 981.057
Minimum Capital and Surplus Requirements 981.058
Alien Insurers 981.063
Commissioner or Department Not Responsible for Determining Unauthorized Insurer’s Financial Condition or Claims Practices 981.064
Commissioner May Order Revocation of Contracts 981.065
Applicability to Contract Extension 981.066
Uniform Standards 981.071
Definition 981.072
Designation as Domestic Surplus Lines Insurer 981.073
Applicability of Other Law 981.074
Authorized Business 981.075
Taxes Imposed 981.076
Requirements for Domestic Surplus Lines Documents 981.077
Redomestication 981.101
Requirements for Surplus Lines Documents 981.102
Limit on Use of Surplus Lines Policy or Contract Forms 981.103
Delivery to Insured of Surplus Lines Documents 981.104
Delivery to Insured of Revised Surplus Lines Documents 981.105
Filing with Stamping Office 981.151
Status as Nonprofit Association 981.152
Board of Directors 981.153
Plan of Operation 981.154
Powers and Duties 981.155
Supervision by Commissioner 981.156
Examination by Commissioner 981.157
Immunity from Liability 981.158
Exemption from Public Information Law 981.159
Exemption from Library and Archives Law 981.160
No Enforcement Authority 981.201
Definition 981.202
Surplus Lines License Required 981.203
Qualifications for Surplus Lines License 981.204
Classification of Surplus Lines Agents 981.210
Placement of Coverage 981.211
Financial Condition of Surplus Lines Insurers 981.212
Accepting Surplus Lines Insurance from Other Agents 981.213
Filing Contract with Stamping Office 981.214
Compliance with Stamping Office Plan of Operation 981.215
Surplus Lines Agent Records 981.216
Annual Report 981.217
Notice to Department Required 981.218
Department Monitoring of Surplus Lines Agents 981.219
Advertising 981.220
Managing General Agents 981.221
Suspension or Revocation of License 981.222
Applicability of Other Law 981.223
Managing Underwriters
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 981.007’s source at texas​.gov