Last week, the Surplus Lines Stamping Office of Texas (SLTX) has filed a recommendation with the Texas Department of Insurance to decrease the stamping fee rate. In its letter to Kent Sullivan, Texas Insurance Commissioner, SLTX said that the board of directors recommends that the stamping fee be cut in half, from the current .15%, down to .075%.

In Texas, the stamping fee is charged on each surplus lines insurance policy, is collected by the surplus lines agent, and is used to fund the operations of SLTX. If adopted, the stamping fee would be the third-lowest of the nation, tied with Illinois.

SLTX staff "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.