Policy Limit Rule Clarification
Since this morning, SLTX has received numerous calls and emails regarding a newsflash issued by TSLA on the Texas policy limits. We are providing additional clarification regarding the intent of the communication and requirements for the new regulations.
In the newsflash, Mr. Jeff Hunt, Assistant Deputy Commissioner, TDI, was quoted and while the sentence was correct, the intent has been interpreted incorrectly by many of our users. The intent is to continue using the methods of compliance that are available on the SLTX website, (including both EFS and the temporary policy limit upload portal). The message was not intended to mean that Texas no longer requires policy limits.
TDI is aware that we have a temporary work-around to capture policy limits. The elements currently being requested are policy #, effective date, and highest aggregate limit. Currently, 49% of agents have filed in the first few weeks have already, utilizing the temporary portal feature and are complying the new rule requirement.
We are aware that many of firms (51%) who have not reported limits require additional assistance and time due to staffing or technology barriers. As such, SLTX will not (nor cannot) report those brokers on the monthly late filers report, nor will they receive system errors for not including such limit data, if their current business processes prevent compliance. Eventually, the expectation of compliance for all will remain the same.
Additionally, we want to thank the agents/brokers who have made the effort towards meeting the new compliance requirements. Please continue to do so as the temporary “policy limit” portal will remain open for all users as our IT development evolves.
As we work towards a pathway for rule compliance for the remaining 51%, SLTX will provide necessary communication to alleviate concerns of enforcement action remedies, given that no compliance deadline dates have been issued, at the current time.
On a final note, firms who have already begun the “policy limit” IT integration and testing, please continue to work with the appropriate SLTX IT and operations team. With firms unable to do so, please do not hesitate to reach out so that we can work with your compliance/IT staff, timelines, and/or future business needs that may impact compliance.