Insurance Bills Progress in Texas House
Bills impacting surplus lines insurance filed in the Texas House of Representatives have moved closer to becoming law. HB 1940, relating to the eligibility of surplus lines insurers to provide windstorm and hail coverage, despite available coverage by the Texas Windstorm Insurance Association (TWIA), was passed by the House on Friday, April 12, 2019. The bill has now been received by the Senate.
The Senate companion bill, SB 2444, was referred to the Senate Business & Commerce Committee, but has yet to be heard in committee.
HB 1648 provides that a surplus lines insurance contract containing an arbitration clause must specify that the arbitration will be conducted in Texas, governed by Texas law, and the insurance contract will be interpreted in accordance with state law. The bill was first referred to the House Insurance Committee in March, and is scheduled for public hearing on Tuesday, April 16, 2019.
A bill to create a diligent effort exclusion for flood insurance in the surplus lines market, HB 1306, will be considered by the House on Thursday, April 18, 2019. The bill was reported favorably by committee on Wednesday, April 10, 2019.