(a) An insurer may credit a contingent surcharge amount on its next remission to the association if the insurer has already remitted the amount to the association for: (1) the portion of the surcharge the insurer was not able to collect from the policyholder, if the policy was canceled or expired;(2) the portion of the surcharge remitted to the association, or deposited directly in the premium surcharge trust fund, that was later refunded to the policyholder as a result of a rescission, midterm cancellation, or midterm policy change, as described in § 5.4184 of this division (relating to Application of Premium Surcharges); or(3) the portion of a surcharge remitted to the association, or deposited directly in the premium surcharge trust fund or funds, in excess of a deposit premium as described in § 5.4184 of this division.(b) An agent may not offset payment of a contingent surcharge or an association surcharge to the insurer for any reason; however, a surplus lines agent allowed by an affiliated surplus lines insurer to remit contingent surcharges to the association on its behalf under § 5.4186(a) of this division (relating to Remittance of Contingent Surcharges), may offset as provided in this section.28 Tex. Admin. Code § 5.4187
The provisions of this §5.4187 adopted to be effective February 16, 2011, 36 TexReg 784; amended to be effective June 12, 2014, 39 TexReg 4463; Amended by Texas Register, Volume 41, Number 10, March 4, 2016, TexReg 1703, eff. 3/9/2016