Surplus Lines Bills Move Closer to Becoming Law
The Texas Senate passed a bill Wednesday, May 17, 2017, that would reform litigation practices when a policyholder sues their insurer after weather-related damages to property.
HB 1774 (Hail Litigation Reform) passed the Senate with 21 yeas, 7 nays, and 1 present, not voting. The bill will now be sent to the Governor, who may sign it, veto it, or allow it to pass into law without a signature.
SB 1070 (Credit for Reinsurance) was passed by both the Senate and the House. However, an amendment was introduced in the House after leaving the Senate, which led the Senate to request a conference committee.
The conference committee will include members from both houses of the legislature who will attempt to resolve the discrepancies in the bill and come to a compromise.
The House has appointed the following representatives to the committee:
- John Frullo, Chair
- Sergio Munoz, Jr.
- Larry Phillips
- John T. Smithee
- Chris Turner
The Senate has appointed the following members:
- Kelly Hancock, Chair
- Larry Taylor
- Brandon Creighton
- John Whitmire
- Robert Nichols
HB 1559 (Industrial Insureds), which would create a category of consumers known as “industrial insureds” has now been signed into law by the governor. The bill was passed by both the House of Representatives and the Senate earlier this session, and was signed by the governor on Tuesday, May 23, 2017.
The new classification will make it simpler for entities with qualified risk managers to purchase surplus lines insurance without first exerting a diligent effort to find coverage in the admitted market. The law is effective on September 1, 2017.
A bill allowing domestic surplus lines insurers (DSLI), HB 2492 (DSLI), was passed by the Senate on Wednesday, May 24, 2017.
Wednesday was the 135th day of session, which was the last day in which the Senate could hear bills on the floor. The bill will now be sent to the governor.
Monday, May 29, 2017, is the final day of session. At that time, the House and Senate will no longer hear bills, and all active bills will either fall away or be made into law.
The legislature will not meet again for legislative session until January 8, 2019.