Gov. Abbott Signs DSLI Bill

House Bill 2492, which authorizes domestic surplus lines insurers (DSLI) in Texas, was signed into law by Texas Governor Greg Abbott on Thursday, June 15, 2017.

The bill, effective January 1, 2018, will allow surplus lines insurers domiciled in other states to apply for a DSLI certificate from the Texas Department of Insurance (TDI). If approved, the insurer will be designated as a DSLI, which means that it may be domiciled in Texas and write surplus lines policies in Texas. Before the law was introduced, eligible surplus lines insurers were required to be domiciled outside of Texas to write business in the state.

The passage of the law may increase jobs and revenue in Texas, as well as improve regulatory oversight by TDI. New procedures and policies for DSLIs may also be introduced as the law takes effect.