Two pieces of legislation impacting the surplus lines insurance industry in Texas have been passed by state lawmakers and are headed to the governor’s desk, the Surplus Lines Stamping Office of Texas (SLTX) reported.
Both bills, HB 1306 and HB 1940 support the expansion of surplus lines insurance coverage for flood, hail and wind, SLTX said.
HB 1306 will create a diligent effort exemption for flood insurance coverage for eligible surplus lines insurers who have a financial strength rating of A- or better from the A.M. Best Company, according to the stamping office.
HB 1940 states that available coverage from the Texas Windstorm Insurance Association (TWIA) does not preclude an eligible surplus lines insurer from providing windstorm and hail insurance.
Both laws were voted on by the Senate on May 20; they previously were approved by the House of Representatives. Each act is set to take effect on Sept. 1, 2019.
Gov. Greg Abbott has until June 16, 2019, to sign, veto, or allow them to pass into law without a signature.
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