Texas Insurance Bills on the Move

House Bill 1559, a bill that would create a class of consumers referred to as “industrial insureds” that are exempt from diligent effort requirements, was unanimously passed by the Texas Senate on Thursday, May 11, 2017.

The bill will now be sent to the governor’s office, who can sign the bill, veto it, or allow it to become law without a signature.

Those who fall into the category of “industrial insureds” will have increased accessibility to surplus lines insurance without first being required to expend a diligent effort searching for coverage in the admitted market. This will give risk managers more options when searching for insurance, as surplus lines policies may provide better coverage at a better value.

House Bill 2492, which could authorize domestic surplus lines insurers (DSLI) in Texas, was voted on by the state House of Representatives on Saturday, May 6, 2017. The bill has now been received by the Senate, where it may be referred to a committee and scheduled for public hearing.

Senate Bill 1070, relating to credit for reinsurance, has now been passed by both the Senate and the House.

Instead of debating the bill in a public hearing, which the committee has already discussed in the form of an identical companion bill in the House, the committee held a formal meeting, which was not open to public testimony. After the formal meeting, the bill was reported favorably by the committee and it was sent to the House calendar.

On the House floor, Rep. John Frullo, who sponsored the House version of the bill, recommended that Senate Bill 1070 be considered in lieu of the house bill. Both bills were identical in text.

On Monday, May 8, 2017, the House passed Senate Bill 1070, but on Thursday, May 11, 2017, the Senate refused to concur in the amendments that the House had passed. The Senate has requested a conference committee, which is composed of members of both houses who will resolve the differences between the Senate and the House.