Broker of Record

Regulations passed by the Texas Department of Insurance and the Texas Comptroller’s Office have defined which broker in a surplus lines transaction involving more than one Texas surplus lines broker is the broker of record.

28 TAC §15.2(8) and 34 TAC §3.822(a)(8) are substantially similar in their definitions of a “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 or agents in these situations are the agent of record for their portion of the premium for the policy placement.

This means that the Texas surplus lines broker who works most closely with the insurer is the broker of record. In addition, the broker of record is the agent legally responsible for filing the policy with SLTX and paying premium taxes to the Comptroller’s Office.

If an agency procures the policy either directly from the insurer or through a non-resident broker who does not hold a Texas surplus lines license, it is the broker of record.

If SLTX determines that a different broker should be reporting the policy, it will be returned unprocessed to the submitting broker.