TDI Commissioner Approves SLTX Stamping Fee Decrease
Texas Department of Insurance Commissioner Kent Sullivan signed an Order decreasing the stamping fee from the current rate of 0.15% of gross premium to 0.075%. The fee reduction aligns with the recommendation submitted to the Commissioner by the SLTX Board on June 25, 2020. The new fee will become effective January 1, 2021.
Additionally, SLTX provided notice yesterday that it would reduce the number of lead-days allowed for transactions from 90 days to 45 days; however, because the fee and timing of the change were received today, SLTX has made the necessary adjustments to our system(s) and rescinded the notice. We will resume acceptance of transactions with the standard lead-time of 90 days. Given the January 1st timing of the fee change and the standard 90-day lead-time, SLTX does not expect that any late filings to be generated due to this change.
To add clarity to the timing and application of the new rate, SLTX provided the following to TSLA: The new stamping fee rate will apply to each new or renewal surplus lines policy with an effective date on or after January 1, 2021. The new rate will also apply to policy date extensions if effective on or after this date. Policies effective on or before December 31, 2020, will run to expiration, cancellation, or next annual anniversary date (for multi-year policies) at the old rate of .15%. This includes any subsequent endorsements, audits, cancellations, reinstatements, installments, and monthly or quarterly reports.
The stamping office is here to provide aid and excellent customer service to all in our industry. If there are any questions or concerns, please utilize our “Submit your Questions” page on our website.