These filing requirements are in accordance with the Texas Insurance Code, Article 1.14-2 and related provisions of the Texas Administrative Code, 28 TAC §15.8. Texas Administrative Code, 28 TAC §15.8 (j) requires the Texas Department of Insurance to maintain the "Surplus Lines Insurers List" compiled from the information submitted to meet the eligibility requirements. Any new information or updates to previously filed documentation must be submitted to the Texas Department of Insurance with copy to the Surplus Lines Stamping Office of Texas. This includes name changes, addresses, changes in officers and directors, etc.

The minimum capital and surplus requirement is $15 million as of December 31, 1995. Failure to maintain at least $15 million capital and surplus may result in the removal of the insurer from the Texas Department of Insurance "Surplus Lines Insurers List." Failure to comply with the evidence filing requirements may also subject the insurer to removal from the list.

Enclosed is a Business Plan Outline to be used to meet the business plan filing requirements. Business Plans must be current within 3 years. If the current business plan on file was submitted prior to March 31,1998, a new plan will need to be filed by March 31, 2001.

Inquiries about the contents of this letter should be directed to Company Licensing and Registration, Texas Department of Insurance, or the Surplus Lines Stamping Office of Texas.

Attached is a Checklist for each of the different types of companies, foreign (U.S. domiciled) or alien (non-U.S. domiciled). The Checklist should be completed and filed with the required documents.

Texas Department of Insurance 
Co. Lic. & Regis., MC 305-2C 
333 Guadalupe
P.O. Box 149104 Austin, TX 78714-9104
512-322-3535, FAX 512-322-3550

Duplicate Copies

Surplus Lines Stamping Office of Texas
P.O. Box 9906
5914 West Courtyard Dr., Suite 150
Austin, TX 78766
512-346-3274, FAX 512-346-3422

The DUE DATE for filing documents varies based on the type of evidence required. A due date is indicated for each type of evidence.

If an insurer is unable to comply with the due dates, a written explanation must be filed with the Texas Department of Insurance (with a copy to the Surplus Lines Stamping Office of Texas) using the Comments Section of the proper Checklist. The explanation should include when the evidence will be filed.

An insurer may also be asked to provide additional information as deemed necessary to perform an evaluation of the insurer's eligibility. This may include, but is not limited to detailed policy information regarding direct premium written in Texas.

Note: Permanent evidence that is already on file with the Texas Department of Insurance and Surplus Lines Stamping Office of Texas need not be filed unless there are changes to the evidence.

4. Provide a Three-Year Business Plan using the enclosed Guidelines to include Texas surplus lines business. Also, describe the method the insurer uses to procure Texas business. 

5. Biographical Affidavits (current within 3 years) on the officers, directors and management of the insurer, including underwriters
primarily responsible for underwriting Texas risks. If underwriting is managed or performed by a separate company or agency, submit the name, address and phone number of such entity. Replace biographical affidavits dated before March 31, 1998.

6. A copy of the NAIC IRIS Ratio Results and the insurer's response to any ratio outside the usual range. If the NAIC reports are not available by the due date, so indicate and provide an internally generated set of the twelve IRIS ratios. Submit the NAIC IRIS Ratio results when available.

7. A Regulatory Disclosure Statement identifying any regulatory actions taken in regard to the company over the past year.

8. A copy of the most current Examination Report, from the examining state, if not previously filed. Provide an explanation, response or description of corrective actions taken regarding exam comments or recommendations.

________________________________________________________________
Name of Company

1. An Annual Report and/or Audited Financial Statement expressed in U. S. Dollars, including
 auditor's most recent "Management Letter" and management's response. DUE DATE: June 1,
2001.

5. Biographical Affidavits (current within 3 years) on the officers, directors and management of the
insurer, including underwriters primarily responsible for underwriting Texas risks. If underwriting is
managed or performed by a separate company or agency, submit the name, address and phone
number of such entity. Replace biographical affidavits dated before March 31, 1998. DUE DATE:
June 1, 2001.

6. A copy of the Trust Fund Agreement and a Current Statement of Account from the trustee of
trust fund. The trust fund, maintained in a U. S. Federal Reserve System Bank is an amount of
not less than $5.4 million. The trust fund must be styled for the protection of U. S. policyholders.
The International Insurers Department Standard Trust Fund Agreement is preferred. DUE DATE:
June 1, 2001.

7. Provide the amount of Premium Written in Texas for 2000 by each surplus lines agent. DUE DATE: June 1, 2001.

10. If listed by the IID, provide a Complete Copy of the standard IID reporting format. Due Date: August 1, 2001.

________________________________________________________________

5. Biographical Affidavits (dated after March 31, 1998). DUE DATE: June 1, 2001. _________

9. International Insurers Department (IID) Preliminary Financial. DUE DATE: As required by IID. _________