Governor Greg Abbott has signed into law two bills recently passed by the Texas Legislature. House Bills 1306 and 1940 provide new opportunities for surplus lines agents and insurers in Texas.
HB 1306
Reacting to the absence of flood insurance for many victims of Hurricane Harvey, the Legislature provided an exemption for the required diligent effort in the placement of flood insurance in surplus lines insurance in Texas. The exemption only applies to eligible surplus lines insurers with an A.M. Best Rating of A- or higher.
HB 1306 is Effective September 1, 2019.
HB 1940
Similarly, the Legislature addressed the availability of windstorm and hail coverage in the coastal area by declaring the availability of coverage by the Texas Windstorm Insurance Association does not preclude the placement of coverage with an eligible surplus lines insurer.
HB 1940 is effective September 1, 2019.
For more information, contact Burnie Burner at bburner@mwlaw.com, Julie Pomerantz at jpomerantz@mwlaw.com or Lauren Ybarra at lybarra@mwlaw.com.
To receive future blog posts about developments in Texas insurance law, subscribe to our Between the Lines blog and e-news.
The Between the Lines blog is made available by Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. and the law firm publisher. The blog site is for educational purposes only, as well as to give general information and a general understanding of the law. This blog is not intended to provide specific legal advice. Use of this blog site does not create an attorney client relationship between you and Mitchell Williams or the blog site publisher. The Between the Lines blog site should not be used as a substitute for legal advice from a licensed professional attorney in your state.