The Surplus Lines Stamping Office of Texas (SLTX) has filed a recommendation for a decrease in the stamping fee rate with the Texas Department of Insurance.
In a letter to Insurance Commissioner Kent Sullivan, SLTX said its board of directors is recommending that the stamping fee be lowered to .075% from the current .15%.
The stamping fee funds the operations of SLTX. It is charged on each Texas surplus lines insurance policy and collected by the surplus lines agent.
The recommendation is based on an analysis by SLTX staff that “projects that the new stamping fee rate will lower the Stamping Office’s projected reserves, excluding funds for asset replacement, to a level not to exceed two times the average of audited operating expenses for the five-year period immediately preceding the subject budget year. The Stamping Office staff projects this reduction will take place over the next 13.5 years,” the letter states.
With the recommended reduced stamping fee rate, Texas’ stamping fee would be the third lowest in the nation, tied with that of Illinois, SLTX said.
The Texas Department of Insurance is accepting comments on the proposal.
Related:
Topics Texas Excess Surplus
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