Insurer FAQs

Q. What is an ineligible surplus lines insurer?

A. An unlicensed insurer that has not met the surplus lines license, minimum capital, or other eligibility requirements listed in Subchapter B or Subchapter B-1 of the Texas Insurance Code as of the effective date of the policy. An ineligible surplus lines insurer is subject to penalty.

Q. What is independently procured insurance?

A. Coverage procured directly by an insured from an ineligible insurer. This means that no broker was involved in the transaction. Under Chapter 226 of the Texas Insurance Code, a premium tax is due on independently procured insurance when Texas is the home state of the insured.