HB 1306 Substitute Requires A- Rating by A.M. Best

A committee substitute for HB 1306, which would allow flood coverage to be exported to the surplus lines market, has been accepted by the Texas House Insurance Committee. The substitute adds that an eligible surplus lines insurer writing flood coverage that has been exported must have an A- or better rating from the A.M. Best Company.

The bill, filed by Rep. John Frullo, was reported out of House committee with a vote of 7-0, with 2 members absent. Next, the bill will be heard by the full House before a vote is taken. If the bill becomes law, it will take effect on September 1, 2019.