Policy Limit Requirements Still in Effect

Aug 4, 2020 | Archive News

In accordance with rules promulgated by the Texas Department of Insurance (TDI), surplus lines policies effective on or after 12/30/2018 must include policy limits (28 TAC §15.106(b)(3)).

To expedite the collection of this data, you should utilize the Policy Limit field within SLTX’s online filing system. This field is available for all new and renewal policies, binders, premium bearing endorsements, and updates. While submission through EFS is preferred, policy limits will still be collected through the file upload portal below. An Excel template may be utilized to transmit the data. The file name must include the SURPLUS LINES TDI License Number. Alternatively, you may submit a declarations page with any supplemental pages as a PDF to comply. The submission methods available are as follows:

  1. EFS Policy Limit field (preferred)
  2. Excel Template (preferred) (MUST USE THIS FORMAT)
  3. PDF Declarations and relevant supplemental pages (PDF)

Multiple documents may be submitted as a zip file through the form on the File Portal Upload page. The max file size limit is 25 MB. If you do not know your SURPLUS LINES TDI License Number, you may look it up on TDI’s Agent Lookup.

While SLTX simplified the policy limit filing to the ‘highest aggregate limit” per policy, there are additional clarifications for the agent community to include:

  • Property Policies– Total Insurable Value (TIV) for all properties on the policy (both in and outside of the state)
  • Liability Policies– Aggregate Limit
  • Package policies(property & liability) – TIV for all properties on the policy (both in and outside of the state)
  • Other – Accident & Health– Maximum Benefit, aka Total Sum (excluding occupational A&H, which are not required to report)

Additionally, SLTX will continue to not reject any filings due to policy limit errors. Policy limit errors will NOT cause a monthly or annual late filing report to TDI.

From the inception, the filing response to include policy limit information to SLTX has been extremely positive. Thus, another reason to thank the hundreds of brokers who are reporting information to our office. Those not yet in compliance are reminded that this regulation stands for all policies effective on or after 12/30/2018. After input from TDI, SLTX should receive a full set of policy limit data for 2020 filings.

For additional assistance, an infographic on policy limit requirements is available on the SLTX website.

If you are unable to comply with this requirement or need additional assistance, please contact the SLTX Tech Support team by phone at (512) 531-1880 or (800) 681-5848 (Option 2) or by email.