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In December 2006 the Board of Directors of the Surplus Lines
Stamping Office of Texas recommended to the Commissioner of Insurance a
decrease in the stamping fee rate charged on Texas surplus lines
policies. In March 2007 the Commissioner ordered that the rate be
lowered from .1% (.001) to .06% (.0006), effective July 1, 2007. The
lower stamping fee rate will apply to each new or renewal surplus lines
policy with an effective date on or after July 1, 2007. The new rate
will apply also to policy date extensions if effective on or after this
date. Policies effective on or before June 30, 2007 will run to
expiration, cancellation, or next annual anniversary date (for
multi-year policies) at the old rate of .1% This includes any subsequent
endorsements, audits, cancellations, reinstatements, installments, and
monthly or quarterly reports.
A complete copy of this rate chart is available at
www.slsot.org/ratetable.htm |
From the Lone Star Lines
- April - June Issue 2007
Surplus Lines Stamping Office of Texas
SLSOT Board Elects
Johnston 2007 Chairman
| Milton O. Johnston was unanimously elected Chairman of the SLSOT Board of Directors during the Annual Meeting held at the Stamping Office in March. Mr. Johnston is President of Milton O. Johnston & Company in Houston, Texas. Additional elections included Martha Rider, Vice-Chair, and Banos Georgiou who will serve as Secretary. Ms. Rider recently retired from Fort Bend County as Risk Manager. Mr. Georgiou is Executive Vice President for Burnett & Company, Inc. in Houston. |
From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
U.S. Stamping Office /
Service Office Production Statistics
In 2006, the 15 US stamping offices processed more than $23.5 billion in
surplus lines premium, an increase of 7.1% over the same period last year.
However, no clear trend was evident, with some offices showing large
increases and others experiencing declining premium in their states. Total
items processed increased 2.8%, to 3.5 million. 
Gross premium reported in NY (calendar year). Data for FL includes $623.4
million / 13,217 policies in IP insurance. Data for TX excludes $759.9
million in "other state" & $345.6 million in "tax exempt" premium. Items
include certain non-premium filings in IL, NV, & TX. |
From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
Benefits of
Agency Licensing
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An agency cannot service, submit policy filings, or pay stamping fees for
their Texas surplus lines business if the entity has no Texas surplus lines
license and the only individual holding a surplus lines license leaves. We
know that all individuals who perform certain surplus lines insurance
activities in Texas are required to have a Texas surplus lines license. A
complete list of the activities can be found in Title 28, Section 15.3 of
the Texas Administrative Code. Entities can also obtain a surplus lines license in Texas. The use of an agency’s Texas surplus lines license to service, submit policy flings, and pay stamping fees eliminates the additional work required to change the surplus lines agent of record on the insured’s copy of the policy and with the Stamping Office every time licensed personnel changes occur. It also resolves confusion over record keeping requirements, confidentiality, and tax payments. The agency needs only to notify the Texas Department of Insurance of licensed staff changes per Title 28, Section 15.4 of the Texas Administrative Code. |
From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
Surplus Lines
Interstate Compact
| Final revisions are being made to the draft of an interstate compact for surplus lines policies insuring multi-state risks. The compact provides viable solutions to the increasingly difficult regulatory and tax compliance problems facing agents placing these transactions. Key features of the proposed compact have been presented recently to the NAIC Surplus Lines Task Force and the draft will again be discussed during the NAIC June meeting in San Francisco. |
From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
SLSOT
Employee News
| The Stamping Office welcomes several new employees to our staff. Laura Bryan, Jennifer Ross, and Trinidad Cervantes have joined the Stamping Office and are currently training as Data Entry Analysts in the Data Services Department. |
From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
EFS
Quick Tips
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From the Lone Star Lines -
April - June Issue 2007
Surplus Lines Stamping Office of Texas
Helpful Hints -
Paper Filing of Policies
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From the Lone Star Lines
- April - June Issue 2007
Surplus Lines Stamping Office of Texas
Comparison of SLSOT Premium Processed
by Line of Business
|
Annual Statement Line of Business |
Premium through 4/30/2007 |
Premium through 4/30/2006 |
Percent Change |
| 1 Fire (incl. allied lines) | $236,422,407 | $221,260,325 | 6.85% |
| 2 Allied lines | $12,685,339 | $9,120,752 | 39.08% |
| 3 Farmowners multiple peril | $347,776 | $387,802 | -10.32% |
| 4 Homeowners multiple peril | $25,789,253 | $28,597,989 | -9.82% |
| 5 Commercial multiple peril | $44,303,325 | $28,273,980 | 56.69% |
| 8 Ocean marine | $3,066,348 | $1,943,844 | 57.75% |
| 9 Inland marine | $29,436,427 | $25,704,555 | 14.52% |
| 11 Medical malpractice | $19,718,318 | $22,594,029 | -12.73% |
| 12 Earthquake | $229,880 | $90,961 | 152.73% |
| 13 Group accident & health | $30,921,573 | $28,169,948 | 9.77% |
| 15 All other A&H | $362,980 | $738,500 | -50.85% |
| 17 Other liability | $577,264,989 | $521,328,559 | 10.76% |
| 18 Products liability | $14,138,845 | $14,221,184 | 0.58% |
| 19.2 Other priv pass auto lia | $0 | $2,817 | -100.00% |
| 19.4 Other comm. auto liab | $41,303,320 | $47,314,699 | -12.71% |
| 21.1 Priv pass auto physical | $529,461 | $403,422 | 31.24% |
| 21.2 Comm auto phys.damage | $22,548,339 | $20,798,853 | 8.41% |
| 22 Aircraft (all perils) | $3,802,595 | $4,271,844 | -10.98% |
| 23 Fidelity | $167,821 | $516,234 | -67.49% |
| 24 Surety | $5,200 | $0 | 0.00% |
| 26 Burglary & theft | $482,610 | $657,920 | -26.65% |
| 27 Boiler & machinery | $911,467 | ($3,606) | 25376.40% |
| 28 Credit | $93,851,811 | $56,769,468 | 65.32% |
| 31 Aggregate/other business | $8,430 | $111,702 | -62.45% |
| TOTAL | $1,158,298,514 | $1,033,275,781 | 12.10% |
| Note: Due to rounding figures may not total | |||
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