SECTION 19.1502. Definitions

The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.

(1) Agent fee--A charge by a local recording agent, in lieu of or in addition to the commission, for services the agent agrees to perform in connection with the sale or service of a particular policy.

(2) Client--The client of the local recording agent.

(3) Commissioner--The commissioner of insurance.

(4) Fees--Fees authorized by Texas Insurance Code, Article 21.14, §4(e), which may include the services rendered to a client but not anticipated in any commission paid to the agent by an insurance company. These services may include special delivery postal charges, printing and reproduction costs, electronic mail costs, telephone transmission costs, or similar costs that the local recording agent may incur on behalf of the client.

(5) Inspection fee--A charge by a local recording agent for examination of a risk to be insured to determine acceptance, rejection or rate.

(6) Local recording agent--A person subject to licensing under Insurance Code, Article 21.14.

(7) Membership dues--A payment or obligation required by an organization or group for an individual to be considered a member or part of the organization or group.

(8) Policy fee--A charge by a local recording agent on behalf of an insurer, managing general agent or surplus lines agent in connection with issuance of the policy. This charge is in addition to the premium.

(9) Service fee--A charge by a local recording agent for actual costs incurred in obtaining a motor vehicle record of a person, or a photograph of property, insured under, or to be insured under, an insurance policy; or the reasonable costs of special delivery or postal charges, printing and reproduction costs, electronic mail costs, telephone transmission costs, and similar costs incurred by the agent on behalf of the client.

Source Note: The provisions of this §19.1502 adopted to be effective October 12, 1992, 17 TexReg 6600; amended to be effective February 21, 1997, 22 TexReg 1643.