Electronic Filing System

The SLSOT Electronic Filing System was available for use July 1, 2003. It provides for sophisticated, secure, web-based filing of policy information to help facilitate effective and efficient data reporting to the Stamping Office. Developed with the input of various agents throughout the state, the system offers a comprehensive, yet user-friendly, approach to gathering and submitting necessary data for surplus lines policies.

Web security is an integral part of the design of the EFS. Use of the Secure Sockets Layer (SSL) ensures that all data sent between your agency and SLSOT is encrypted. No other agent can view or update your transactions, and you will not be able to see or modify another agent's filings. Also, input and access to filing data is restricted to only those in your agency with user profiles registered on the system.

With proper enrollment in e-filing and only a small amount of training, office personnel can quickly and easily create the agency security setups, start filing policy data, and review online reports as batches are processed.

Larger agencies, with high-volume filing needs, can take advantage of the file upload options available in the EFS and automatically extract required policy data from their own agency database to transmit manually or programmatically to the Stamping Office.

The Electronic Filing System offers several Help resources-both online and printable-to help you become oriented to the system. The Stamping Office also provides support with technical questions; you can contact the EFS Help Desk by phone, fax, or e-mail on Monday-Friday during normal business hours.

REGISTRATION INFORMATION:

To register for electronic filing, a request must be submitted to the Stamping Office on agency letterhead and signed by the owner or an agency principal. The request may be sent by either mail or fax. E-mail requests will not be accepted for security reasons.

The initial user will be designated as the Agency Administrator.

Agency Administrator: The individual assigned by each agency or organization to serve as manager of EFS tasks and security. The Administrator’s duties include Security profile administration, setup and maintenance of individual User Profiles, and e-filing procedures supervision.

The following information must be included: 

1. Complete Agency Name          4. Phone Number                         
2. License Number                       5. E-Mail Address
3. Agency Contact                        6. Initial User

Upon registration of the agency in the Electronic Filing System, the designated agency administrator will be notified of the completion of the initial security profile setup by the Stamping Office and will be instructed to log in to the EFS to complete the secondary phase of the security profile entry. Security administration information will be included. 

Mail registration requests to:

                        Surplus Lines Stamping Office of Texas
                        P.O. Box 160170
                        Austin, Texas 78716-0170
                        or fax to:  (512) 346-3422

GENERAL TECHNICAL REQUIREMENTS:

To access the EFS, agency filers will be required to have a working Internet connection and use either of the following web-based browsers:

            Netscape Navigator, v.6.2, or higher
            Internet Explorer, v.5.5, or higher 

This requirement imposes a minimum hardware configuration of Pentium II or III at 200+mhz, with a minimum 64 MB RAM. 

It will also be necessary to have Adobe Acrobat Reader (v 4.0 or v 5.0) installed on your system in order to open and print the various report files or Help documentation, which are presented in .pdf format.

 For registration information & requirements visit the EFS website at https://efs.slsot.org/efs 

Surplus Lines Stamping Office of Texas
EFS Help Desk  (800) 681-5848 or local in Austin 346-0685

FILING WITH SLSOT

Section 981.213 of the Texas Insurance Code requires that “A surplus lines agent shall report to and file with the stamping office a copy of each surplus lines insurance contract as provided in the stamping office’s plan of operation.” The following provides guidelines for agents regarding this requirement. [Note:  Beginning July 1, 2003 agents may file surplus lines policy data using the Stamping Office Electronic Filing System, or EFS. Agents can contact the EFS Help Desk at (800) 681-5848 (or in Austin at 346-0685) to obtain technical assistance regarding registration for accessing this system. Information is also available at https://efs.slsot.org/efs. At this time, use of the EFS is strictly voluntary.] 

Q: What is filed with the Stamping Office? 

A: The surplus lines agent of record must file a true and correct copy of each executed surplus lines insurance contract. Policies, endorsements, cancellations, audits, etc. shall be filed with the Stamping Office within 60 days after the effective date or issue date, whichever is later. If an insurance contract is not issued within 60 days, you must submit a binder. A binder is to include all pertinent information applicable to policy coverages. The binder must be replaced by the insurance contract when it is received. 

You may omit standard ISO forms and standard Texas forms which contain no premium or no added wording or changes. You may also omit other standard forms containing no policy-specific typed information. 

Each insurance contract submitted to the Stamping Office is to contain the following information:

 (1) a declarations page;
 (2) a listing of all participating insurers on the policy;
 (3) all coverage parts and schedules;
 (4) extended coverage exclusions;
 (5) all premium-bearing documents; and
 (6) any other parts as may be required by the stamping office to review and record the policy. 

Q. How is a filing made? 

A.  All surplus lines documents submitted to the Stamping Office for processing are to be transmitted in batch form with no more than 20 items in each batch. You must submit each batch with a Transmittal and Verification Slip, completed in duplicate (just the transmittal slip, not the entire batch). A sample is provided at the end of this section. You may reproduce the Transmittal and Verification Slip on your computer, but the format must be the same as the sample. This includes printing the form in a portrait format. Fill out the transmittal slip completely, listing each named insured and policy number, along with the premium (including policy fee), tax, and stamping fee. Please include the name of a contact person and your telephone number along with the agency name and license number. You should retain a copy of the transmittal in your office for reconciliation purposes. 

List each item individually on the Transmittal and Verification Slip. Do not add two or more items together, listing only the total or difference in premium. This can result in items being overlooked or tagged. 

The only non-premium items filed are name changes, policy number changes, and date changes. Non-premium endorsements should be batched separately when filed with the Stamping Office, except when the non-premium endorsement is being filed along with the policy. Include the named insured and policy number on the transmittal for these items as well.  

We cannot process batches using your batch numbers, but we will attempt to process them in a particular order if you number them (for example: 1 of 10, 2 of 10, 3 of 10, etc.) and submit them in the same envelope or package. If you are submitting policies and endorsements to those policies in separate batches, this will ensure the policies are processed ahead of the endorsements and prevent unnecessary tagging. Multiple envelopes or packages mailed on the same day should also be numbered (for example: 1 of 3, 2 of 3, 3 of 3). 

Q. What is an item? 

A. An item is a policy, binder, endorsement, cancellation, audit, etc. 

Q. What is a non-premium batch? 

A. This is a batch that contains only items that have no premium being reported. You submit these by using the same Transmittal and Verification Slip, but leave the last four columns blank. Include the named insured and policy number on these items. We do not have a different Transmittal and Verification Slip for non-premium items. 

Q. Does the Stamping Office acknowledge the filings I make? 

A. Yes, several ways. First, you will receive a copy of the batch edit, usually within

a few days of processing. Next, you will receive a monthly report which lists all transactions processed during the month, and an invoice which bills you for the applicable stamping fee. You will also receive an annual report which summarizes all premium and surplus lines tax processed by the Stamping Office during the calendar year. It is important that you reconcile each of these reports when they are received to be sure all items were processed as intended and to identify any corrections that need to be made. 

Q. What is a batch edit? 

A. A batch edit is a computer generated listing of all the items processed in a batch. It shows each policy number, named insured, coverage, policy dates, and if applicable, premium, tax, and stamping fee. A premium bearing item will also list the securities and their percentage of participation. The batch edit shows the name and license number of your agency, the batch number, and the date processed by the Stamping Office (reporting date). 

Q. Must we always file binders with the Stamping Office? 

A. No. If the policy is issued within the 60 day filing requirement, it is not necessary for the binder to be filed. If you do file a binder, it must meet the same requirements in 28 TAC, Section 15.23(c) as a policy and must be replaced when the policy is issued. 

Q. How do we file binder extensions? 

A. Extensions should be filed in a non-premium batch, referring to the original binder number and showing the original effective date of coverage. 

Q. How do we file a policy replacing a binder? 

A. If the premium has not changed, file the policy in a non-premium batch, showing that it is a policy replacing a binder. Refer to the original binder number if it is different from the policy number, and note any changes in the insurer names and/or percentage of participation. 

Q. What if the policy premium is different from that submitted on the binder? 

A.  The policy must be filed in a premium bearing batch, which requires a two-line entry on the Transmittal and Verification Slip. On the first line, show the original binder premium as a credit amount. On the next line, list the policy with the actual premium. Show that you are reversing the binder premium. 

Q. What if I have filed premium bearing endorsements using the binder number? 

A. When you submit the policy replacing the binder, you must file this on a premium bearing transmittal. You must reverse the binder and all endorsements.  They should all be re-entered under the policy number.   

Q. How do we handle policies with multi-state or tax-exempt exposure which are procured by a Texas licensed surplus lines agent? 

A. You must report the gross amount of the policy premium, not just the Texas exposure. You must allocate the premium according to whether the premium is on Texas exposures, on Other States exposures, or is Exempt from tax. You must use the "Other States/Exempt Premium" form in addition to the Transmittal and Verification Slip. A copy of this form can be found at the end of the questions and answers. Fill out this form and attach it to the top of the relevant transaction in the batch you send to the Stamping Office. Only use this form to report a policy or other premium-bearing item that includes non-Texas and/or exempt premium in addition to the Texas premium. The Transmittal and Verification Slip will be marked with an "X" in the box to the left of the named insured to indicate the submission of the other states and/or exempt premium.  

According to 34 TAC 3.822(c), policies for risks that are 100% tax exempt, are preempted by federal law and insure risks located entirely outside Texas, or risks that are allocated entirely to another state, need not be reported to the Stamping Office. 

Q. What surplus lines premium is exempt from tax in Texas?  

A. There are both state exemptions and federal preemptions. Generally, state law exempts from tax premium on risks or exposures located in federal or international waters or under the jurisdiction of a foreign government. There are also certain organizations exempt by statute (e.g. the Texas Medical Center Central Heating and Cooling Services Cooperative Association). Contact the Comptroller's Office for questions regarding exempt organizations. Federal preemptions include coverage for federally chartered credit unions, the National Credit Union Administration when acting as conservator or liquidating agent for federally chartered credit unions, and the Federal Deposit Insurance Corporation (FDIC) when acting as  receiver of a failed financial institution holding the property being insured.  

Q. Why does the Stamping Office return an item if the policy number is not exactly the same as on the original policy? 

A. The Stamping Office receives more than 400,000 policies each year. Many policy numbers, including prefixes and suffixes, are very similar, if not identical. 28 TAC 15.15(a) states "The surplus lines agent shall inscribe all records and files maintained by the surplus lines agent that are pertinent to a specific risk with the same policy number." If the policy number is not exactly the same on all endorsements, etc., it is possible they could be omitted when the Stamping Office is called on to reproduce a complete copy of the policy. 

Q. Does the guaranty fund nonparticipation notice have to be located directly on the declarations page? 

A. No. Section 981.101 (b) only requires that the notice be contained within the policy. 

Suggestion: The dec page is often crowded, making it very difficult to read the wording on the notice. Some agents include an additional page with this same wording, both complying with the rules and guaranteeing the notice is legible to the insured.  

Q. Why is it necessary for our name and address to be shown on the policy? 

A. First, the requirement is statutory. Section 981.101 (c)(4), Texas Insurance Code, states: “A surplus lines document must show:...(C) the insurance agent who obtained the surplus lines coverage....” Second, it provides the insured with the ability to identify you if they need to contact you. Third, if items become separated from the Transmittal and Verification Slip or if they are submitted without one, then we can identify you and contact you. Finally, it verifies the policy was procured by a licensed surplus lines agent under the Texas surplus lines law. This is important since the company covering the risk is an unlicensed insurer. 

Q. Whom do we notify when we move or change our name?  

A. Send written notification to the Licensing Group at the Texas Department of Insurance, with a copy to the Surplus Lines Stamping Office of Texas. 

Q. Are there any special filing requirements if our agency buys a book of business or if we merge with another surplus lines agency? 

A. Yes. If you acquire business from another surplus lines agent, the first time you file an endorsement, cancellation, or audit for the acquired business, they should be filed separately from your other business. You need to submit these items on a Transmittal and Verification Slip showing your name and license number, along with an "agent of record" letter. 

This letter can be as simple as saying that " the policies were originally written by agent _______________ and we are now the agent of record." This should be on your letterhead and signed by a licensee. Only one letter is needed for each Transmittal and Verification Slip. After processing the "agent of record" letter, our system will keep track of the information.  

Q. What is an "ineligible surplus lines insurer"? 

A. One that is unlicensed and has not met the surplus lines eligibility requirements of Chapter 981, Subchapter B as of the effective date of the policy. An ineligible surplus lines insurer is an unauthorized insurer and subject to the penalty provisions of Chapter 101,  rather than Chapter 981, TIC. 

Q. Why is the Stamping Office so particular about the name of the insurer? 

A. There are many companies with names so similar that they are easily mistaken for one another. Also, fraudulent insurers sometimes use names very similar to reputable insurers. It is essential that you provide us with the exact name of each insurer so there is no question as to the insurer's identity. Often, the only difference in a name may be just the abbreviation UK or Ltd or Co. The Surplus Lines Insurers List provides the acceptable name of eligible surplus lines insurers. Refer to Section 9 (Insurers) of this Procedures Manual. 

Q. Why would the Stamping Office show my insurer(s) as "Unknown"? 

A. The unknown entry is an interim measure, used by the Stamping Office to record business until the actual name and/or percentage of participation can be determined. Some reasons for this entry are: 

Unable to identify the insurer (must provide the complete name)
Security list is not attached or not properly identified
Insurer is shown as either "London Companies" or "Certain Ins Cos"
Securities total more than 100%
Securities total less than 100%
Need further distribution of groups with percentages of percentages 

Q. Why is it necessary for the security percentages to total 100%? 

A. You are reporting 100% of surplus lines premium. We must identify each insurers premium as a percentage of that total policy premium. If we ask that you redistribute the percentages, we are not asking you to make any change in the coverage, only the distribution of percentages pertaining to the premium. 

Q. If my policy is written through Underwriters at Lloyd's, what do I need to send to the Stamping Office? 

A. If your new or renewal policy (or any portion thereof) is written by Underwriters at Lloyd's, you must provide us with a list of the syndicates. Just showing Underwriters at Lloyd's is not sufficient. Each syndicate must be identified by syndicate number. This syndicate information must be provided on binders, cover notes, renewal certificates, and date extensions. Keep in mind that all syndicates must be eligible on the effective date of the policy, renewal certificate, or date extension. 

Q. What if my policy has multiple Lloyd's contracts totaling 200 or 300% - must I redistribute the percentages to total 100%? 

A. No, you do not have to redistribute the percentages on the syndicates since we are not tracking premium by individual syndicate.  Just file a copy of the syndicate list on each contract, being sure the list includes the syndicate number.           

Q. When is the green Transmittal and Verification Slip used?

A. This form is used to submit security corrections only. A sample is included at the end of this section. If you have replaced an ineligible security with an eligible security, or if you have an endorsement which provides the complete name of an insurer, previously processed as "Unknown", or if you are providing the correct percentage of participation on securities, use this form to submit your security endorsement. Do not use this green form for anything except security corrections, since these forms receive different treatment by our staff.  Do not combine this form and corrections with items which should be in a regular batch.  

Q. Why is it necessary to remove admitted/licensed insurers from a surplus lines security agreement?

A. These insurers are not subject to surplus lines premium tax or stamping fee. Insurers licensed to write business on an admitted basis in Texas are precluded from writing surplus lines business, as only unlicensed insurers may be eligible, pursuant to Section 981.004 (a) of the Texas Insurance Code. Admitted insurers are generally subject to rate and form regulation by the Texas Department of Insurance. Also, the notice regarding nonparticipation in the guaranty fund cannot be applied to authorized insurers. 

Q. What taxes and fees apply to surplus lines policies? 

A. Surplus lines tax is 4.85%, effective September 1, 1989. The current stamping fee rate as well as a table of all tax rates and stamping fee rates for prior years can be found on our website at www.slsot.org.   

Q. To whom are surplus lines taxes and stamping fees charged? 

A. Both are charged to the insured.  The surplus lines agent of record is responsible for collecting, reporting and paying the taxes and stamping fee. 

Q. To what do the stamping fee and surplus lines premium tax apply? 

A. They are applicable to gross premium, including membership fees, assessments, dues, inspection fees, policy fees, or any other consideration for insurance charged to the insured. 

Q. How are tax and stamping fee shown on policies, endorsements, etc.? 

A. The tax and stamping fee must each be shown separately, on all policies, binders, endorsements, cancellations, etc. 

Q. Must I still maintain surplus lines premium taxes in a separate tax trust account? 

A. As of January 1, 2000 you are no longer required to maintain a separate account. 

Q. When and how is the stamping fee remitted? 

A. The Stamping Office will prepare an invoice for each surplus lines agent within 10 days following the end of each month. It will list the amount of stamping fees due. Payment must be received by the Stamping Office, P.O. Box 160170, Austin, Texas 78716-0170, by the end of the month in which the notice of fee is billed and shall include all amounts shown as due whether or not collected by the agent (e.g., January account due by February 28). 

Q. How is the surplus lines tax remitted? 

A. Surplus lines taxes are remitted to the Comptroller of Public Accounts annually (or by prepayment under Comptroller procedures). The Stamping Office will provide you with a summary of premium tax based on documents you have submitted for processing. The actual tax amount due is based on either premium written or premium received, as elected by the agent.  

Q. What do I do if I am voiding an endorsement or replacing it with another one? 

A. You must reverse the previously submitted endorsement on a premium bearing transmittal and list the replacement, if applicable. You must submit supporting documentation on both items, i.e. a copy of the first item marked with "Reverse" and a copy of the replacement item.  

Q. May I issue a renewal certificate instead of a renewal policy? 

A. Yes, but certain requirements must be met. All insurers must be eligible as of the  effective date of the extension. A renewal certificate must show all the following information: 

·             guaranty fund nonparticipation notice
·             complaint notice
·             policy number (must also show expiring policy number if different from renewal)
·             named insured
·             applicable premium, surplus lines tax, and stamping fee
·             effective and expiration dates
·             complete names of insuring companies, with percentage of participation
·             name and address of the procuring surplus lines agent
·             list of syndicates if written through Underwriters at Lloyd's 

Q. What if I only extend the policy period instead of issuing a renewal certificate? 

A. An extension endorsement must include the same information as a renewal certificate, except that you do not have to attach a complaint notice. By law, it must include the guaranty fund nonparticipation notice and all insurers must be eligible as of the effective date of the extension.  Tax and stamping fee charged are based on the rates in effect on the date of the extension. 

Q. What is a "TAG"? 

A. A tag is a computer generated memo which either requests additional information or informs you of a possible error or problem. We issue tags for a variety of reasons. Some are purely technical, often requiring no response as these relate to details and are primarily informational. Other tags are issued because of requirements in either the statutes or rules. Still others are issued because of a Stamping Office processing requirement. 

Q. How do I know if I must respond to a tag memo? 

A. First, read all the text contained in the memo. This will tell you what the problem is. If the tag requires a response from you, it will say "please resubmit with a new transmittal" or "please submit both items", or "file this item with a new transmittal", etc. 

Q. Must every tag be returned to the Stamping Office with a Transmittal and Verification Slip? 

A. No, there are a few tags that do not require a transmittal, such as the one requesting that you provide us with the EC (Extended Coverage) territory. The text of the tag memo will tell you if a transmittal is necessary. If not, the tag will say "no response required". Remember, if it is necessary to file the item with a Transmittal and Verification Slip, you must submit a new transmittal slip, not a copy of the previous one. 

Q. How can I tell if you processed an item when it was tagged? 

A. There are three ways to tell if an item was processed. First, if the item contains premium, the batch edit will show the premium, tax, and stamping fee, in addition to the effective and expiration dates. Even a non-premium item will show the policy dates and coverage if it was processed. Second, the tag memo itself will also show the premium, if any, when an item was processed. Third, if the batch edit lists the item with a type code "P" (for pending), the item was not processed. These items show only the policy number and named insured. Also, pending items are listed last on the batch edits. 

Q. Do I need to submit each tagged item on a separate Transmittal and Verification Slip? 

A. No, you can include up to 20 items on a single transmittal. You can also include tagged items with other types of items to be processed. 

Q. How do I clear a tagged item from suspense? 

A. First, if the tag asks that you return the item to the Stamping Office, please return it, along with a copy of the tag memo itself. If you do not return the tag memo, we will not know there is a suspense to be removed. Second, the item must have actually been corrected or an acceptable explanation given. Just because a tag memo is returned to the Stamping Office does not automatically mean that the suspense will be removed. Be sure you have responded correctly to the tag request before submitting the item for processing.  Handwritten changes on the named insured, policy number and dates are not acceptable. 

Q. What is an attaching clause? 

A.  An attaching clause is a statement appearing on a form or endorsement which stipulates that said form or endorsement is "attached to" or "forms a part of" the policy.  Pertinent information, such as the named insured, policy number and effective date is also shown. 

Q. Why do I not receive a copy of the item in question when I receive a late tag? 

A. We issue thousands of tags each month and hundreds of late tags are mailed each day. The original tagged item is returned to you only once, with the original tag. 

Q. What if I have something that I am uncertain how to submit? 

A. We will be happy to help you with a problem. Just e-mail or give us a call, identifying your question as a filing question, and we will work with you to find a solution. 

Q. How do some of my items get processed twice? 

A. Most often, duplications occur because an item is filed twice, on separate transmittals and on different dates. If we return an item, telling you that the original policy is not in our system, it is important for you to verify that you have not already submitted the policy sometime between the date you originally filed the endorsement and the date you are answering the tag. Also, if you file a policy on a premium bearing transmittal, with no indication that it is replacing a binder, the policy will be processed with premium. 

Q. What should I do if I receive a Duplicate Policy Report from the Stamping Office? 

A. This report lists possible duplications, so you must first verify that the premium is actually a duplication. If this is verified, you can file a reversal by listing the item as a credit on a premium bearing Transmittal and Verification Slip. You will need to attach either a copy of the item, a copy of one of the batch edits, or a copy of the applicable monthly detail report listing the entry as documentation for the reversal. We cannot process a reversal from a copy of the Duplicate Policy Report; appropriate documentation is necessary. 

Q. If I have a policy that is paid on an installment basis, what should I send to the Stamping Office? 

A. If there is an installment schedule attached to the policy, you can file a copy of it each time an installment is billed.  Just highlight the appropriate installment.  If there is no schedule on the policy, you can send a copy of the invoice, being sure the correct policy number, named insured and installment date are shown.  This is the only time we can accept an invoice as documentation. 

Q. Do I need to indicate that my policy premium is going to be on a monthly reporting basis? 

A. Yes, otherwise, if there is an estimated annual premium shown, we will enter that amount when we process the policy. 

Q. Why does the Stamping Office enter the deposit premium when I show $0. on the transmittal and verification slip? 

A.  If a deposit premium is shown on a policy, then the premium must be reported and taxes and stamping fee collected. If this is not actually a collected deposit premium, then it should not be shown on the policy. 

Q. What other information must be included when we write a policy providing employers liability or excess employers liability coverage for an insured electing to be a nonsubscriber to the Texas workers' compensation system? 

A. By law, these policies must include an additional statement in 10-point bold-face type on the first page of the policy. The wording is: 

"THIS IS NOT A POLICY OF WORKERS' COMPENSATON INSURANCE. THE EMPLOYER DOES NOT BECOME A SUBSCRIBER TO THE WORKERS' COMPENSATION SYSTEM BY PURCHASING THIS POLICY, AND IF THE EMPLOYER IS A NON-SUBSCRIBER, THE EMPLOYER LOSES THOSE BENEFITS WHICH WOULD OTHERWISE ACCRUE UNDER THE WORKERS' COMPENSATION LAWS. THE EMPLOYER MUST COMPLY WITH THE WORKERS' COMPENSATION LAW AS IT PERTAINS TO NON-SUBSCRIBERS AND THE REQUIRED NOTIFICATIONS THAT MUST BE FILED AND POSTED."

DEFINITIONS

Stamping Office - Surplus Lines Stamping Office of Texas

Alien Insurer - domiciled and licensed in a country other than the U.S. or its possessions.

Surplus Lines Agent of Record - The Texas licensed surplus lines agent who places a policy with an eligible surplus lines insurer, or the Texas licensed surplus lines agent who transacts business directly with an out-of-state agent not licensed by Texas as a surplus lines agent to obtain coverage with an eligible surplus lines insurer. The agent in these situations is the agent of record for that agent's portion of the premium for the policy placement.

Foreign Insurer - not domiciled or licensed to transact business in Texas, but is domiciled in a different state within the U.S. or its possessions.

Eligible Insurer - an insurer which both meets the criteria of Section 981, Subchapter B and TAC 28 Sections 15.8 and 15.9 and is also listed on the Surplus Lines Insurers List. Simply stated, it is an insurer which is on the Surplus Lines Insurers List and you as the surplus lines agent have made a reasonable effort to ascertain the financial condition and business practices of the insurer.

Ineligible Insurer - one that is unlicensed and has not met the surplus lines eligibility requirement of Article Section 981, Subsection B, as of the effective date of the policy. An ineligible surplus lines insurer is an unauthorized insurer and subject to the penalty provisions of Chapter 101 of the TIC,  rather than Chapter 981.

Surplus Lines Insurers List - a list of eligible surplus lines insurers maintained by the Texas Department of Insurance, indicating all unlicensed insurers meeting the requirements of Chapter 981, Subchapter B. Updates to this list are provided monthly under cover of Stamping Office bulletins.

Insurance Contract - an insurance policy, cover note, certificate, or any other detailed evidence of coverage, including policy jackets, endorsements, audits, evidence of cancellation, and coverage parts.

Binder - a document issued by an agent or company to an insured serving as a temporary, legally binding agreement to insure, effective until an actual policy or other evidence of coverage is issued. A binder contains the details of the insurance coverage.

Item - a policy, binder, endorsement, cancellation, audit, etc.

Batch - a group of  up to 20 surplus lines documents submitted to the Stamping Office for processing.

Batch Edit - a computer generated report from the Stamping Office listing all the various data entered from the items contained in a batch.

Tag - a computer generated memo which either requests additional information or informs you of a possible error or problem.

Late Tag - a follow-up reminder that the original problem, previously tagged, has not been resolved.