House Insurance Committee Hears HB 1306

The Texas House of Representatives Committee on Insurance held a meeting on Tuesday, March 26, 2019, where HB 1306 was considered. The bill, filed by Rep. John Frullo, would create a diligent effort exclusion in the surplus lines industry for flood insurance.

The bill would provide a venue outside of the National Flood Insurance Program (NFIP) for homeowners and business owners to obtain flood insurance, according to Rep. Frullo.

Ryan Handler testified on behalf of the Texas Surplus Lines Association (TSLA) and in favor of the bill. Committee Vice Chair Rep. Tom Oliverson asked for more information on the types of policies that surplus lines insurers would write in the market and how they would differ from NFIP policies. Handler stated that areas prone to flooding do not have many options when it comes to flood insurance. He said that the admitted market does not take on much risk in these areas, while the surplus lines market does.

“The idea here is to remove some of the logistical yellow tape into accessing the surplus lines market over NFIP in order to relieve the dependence on NFIP, and also to create more options and a more favorable marketplace for the consumer,” Handler said.

No other testimony was offered. HB 1306 was left pending.