Texas 2017 - 85th Regular

Texas House Bill HB1559 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Frullo (Senate Sponsor - Hancock) H.B. No. 1559
2		-	(In the Senate - Received from the House April 18, 2017;
3		-	April 19, 2017, read first time and referred to Committee on
4		-	Administration; May 9, 2017, reported favorably by the following
5		-	vote: Yeas 6, Nays 0; May 9, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 1559
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the provision of surplus lines insurance to certain
12	6		commercial insureds.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Subchapter A, Chapter 981, Insurance Code, is
15	9		amended by adding Section 981.0033 to read as follows:
16	10		Sec. 981.0033. INDUSTRIAL INSURED DEFINED. For purposes of
17	11		this chapter, "industrial insured" means a person who purchases
18	12		commercial insurance and, at the time of placement:
19	13		(1) employs or retains a qualified risk manager to
20	14		negotiate insurance coverage; and
21	15		(2) either:
22	16		(A) has paid aggregate nationwide commercial
23	17		property and casualty insurance premiums of more than $25,000 in
24	18		the immediately preceding 12 months; or
25	19		(B) employs at least 25 full-time employees.
26	20		SECTION 2. Section 981.004, Insurance Code, is amended by
27	21		adding Subsection (d) to read as follows:
28	22		(d) Subsection (a)(1) does not apply to insurance procured
29	23		for an industrial insured if:
30	24		(1) the agent procuring or placing the insurance
31	25		discloses to the industrial insured that:
32	26		(A) comparable insurance may be available from
33	27		the admitted market that is subject to more regulatory oversight
34	28		than the surplus lines market; and
35	29		(B) a policy purchased in the admitted market may
36	30		provide greater protection than the surplus lines insurance policy;
37	31		(2) the surplus lines company offering the coverage
38	32		has a financial strength rating of A- or better from the A. M. Best
39	33		Company; and
40	34		(3) after receiving the notice described by
41	35		Subdivision (1), the industrial insured requests in writing that
42	36		the agent procure the insurance from or place the insurance with an
43	37		eligible surplus lines insurer.
44	38		SECTION 3. Section 981.215(a), Insurance Code, is amended
45	39		to read as follows:
46	40		(a) A surplus lines agent shall maintain a complete record
47	41		of each surplus lines contract obtained by the agent, including any
48	42		of the following, if applicable:
49	43		(1) a copy of the daily report;
50	44		(2) the amount of the insurance and risks insured
51	45		against;
52	46		(3) a brief general description of the property
53	47		insured and the location of that property;
54	48		(4) the gross premium charged;
55	49		(5) the return premium paid;
56	50		(6) the rate of premium charged on the different items
57	51		of property;
58	52		(7) the contract terms, including the effective date;
59	53		(8) the insured's name and post office address;
60	54		(9) the insurer's name and home office address;
61	55		(10) the amount collected from the insured;
62	56		(11) an agreement under Section 225.006(c);
63	57		(12) evidence establishing that:
64	58		(A) the insured qualified as an exempt commercial
65	59		purchaser and that the surplus lines agent complied with the
66	60		requirements of Section 981.004(c) if a diligent effort to obtain
67	61		insurance in the admitted market was not made pursuant to Section
68	62		981.004(a)(1); or
69	63		(B) the insured qualified as an industrial
70	64		insured and that the surplus lines agent complied with the
71	65		requirements of Section 981.004(d) if a diligent effort to obtain
72	66		insurance in the admitted market was not made pursuant to Section
73	67		981.004(a)(1); and
74	68		(13) any other information required by the department.
75	69		SECTION 4. The changes in law made by this Act apply only to
76	70		an insurance policy delivered, issued for delivery, or renewed on
77	71		or after January 1, 2018. A policy delivered, issued for delivery,
78	72		or renewed before January 1, 2018, is governed by the law as it
79	73		existed immediately before the effective date of this Act, and that
80	74		law is continued in effect for that purpose.
81	75		SECTION 5. This Act takes effect September 1, 2017.
82		-	* * * * *
	76	+	______________________________ ______________________________
	77	+	President of the Senate Speaker of the House
	78	+	I certify that H.B. No. 1559 was passed by the House on April
	79	+	13, 2017, by the following vote: Yeas 138, Nays 0, 2 present, not
	80	+	voting.
	81	+	______________________________
	82	+	Chief Clerk of the House
	83	+	I certify that H.B. No. 1559 was passed by the Senate on May
	84	+	11, 2017, by the following vote: Yeas 31, Nays 0.
	85	+	______________________________
	86	+	Secretary of the Senate
	87	+	APPROVED: _____________________
	88	+	Date
	89	+	_____________________
	90	+	Governor