Another Successful Legislative Session for E&S Insurance

As the last day of the 86th Texas Legislature approaches, the Texas Senate passed two (2) bills that will both impact and solidify the surplus lines industry expansion within the flood, hail and wind arenas.

HB 1306 will create a diligent effort exemption for flood insurance coverage for eligible surplus lines insurers who have a financial strength rating of A- or better from the A.M. Best Company.

HB 1940 states that available coverage from the Texas Windstorm Insurance Association (TWIA) does not preclude an eligible surplus lines insurer from providing windstorm and hail insurance.

Both laws were voted on by the Senate on Monday, May 20, 2019, after first being passed by the state House of Representatives. Each act is set to take effect on September 1, 2019. As the Senate did not make amendments to either bill, they will now be sent to the Governor, who has until Sunday, June 16, 2019, to sign, veto, or allow them to pass into law without a signature.