Texas Approves First DSLI
Starr Surplus Lines Insurance Company has become the first domestic surplus lines insurer (DSLI) in Texas, effective January 1, 2018. The company has been approved to redomesticate to Texas and authorized to write coverage in the state.
House Bill 2492, which permits DSLIs in Texas, went into effect January 1, 2018. The bill was passed by the state legislature in May 2017 as part of the 85th legislative session.
The new law allows surplus lines insurers to apply for a DSLI certificate, which is issued by the Texas Department of Insurance (TDI). Upon receipt of the certificate, the insurer may be domiciled in the state of Texas and write surplus lines policies in the state. Previously, a surplus lines insurer had to be domiciled outside of the state in order to write coverage in Texas.
As insurers attain the DSLI certificate, the Surplus Lines Stamping Office of Texas (SLTX) will note each insurer on its website as part of its eligible insurers list.
With the passage of the law, Texas joins 11 other states (Arizona, Arkansas, Delaware, Illinois, Louisiana, Missouri, North Dakota, New Hampshire, New Jersey, Oklahoma, and Wisconsin) that also have this type of law in place.