Texas Senate to Hear HB 1940

Following its passage by the Senate Business and Commerce Committee, the full Senate will soon hear HB 1940, a bill that will allow eligible surplus lines insurers to provide windstorm and hail insurance, regardless of available coverage through the Texas Windstorm Insurance Agency (TWIA).

Sen. Brandon Creighton laid out the bill for the committee, noting that under it, residents would be free to purchase coverage from TWIA or a surplus lines insurer willing to insure their property.

“This would expand the insurance options to tier 1 county residents, without changing or limiting their access to TWIA and other markets,” Creighton said. “House Bill 1940 would complement TWIA’s effort to depopulate, as every policy written by a surplus lines insurer would be one less policy that would require insurance through TWIA.”

Beaman Floyd, Director of the Texas Coalition for Affordable Insurance Solutions, spoke briefly in favor of the bill, stating that it would bring additional insurance capital to the seacoast tier 1 space.

The Senate committee voted to pass the bill on Thursday, May 2, 2019, with a vote of 8-0, with one member absent.