Texas Senate Bill SB2444

Texas 2019 - 86th Regular

Caption

Relating to eligibility of surplus lines insurers to provide windstorm and hail coverage.

Impact

The enactment of SB2444 is anticipated to provide greater flexibility and options for policyholders in Texas seeking windstorm and hail insurance. By not confining coverage options to the Texas Windstorm Insurance Association, customers may benefit from a broader range of policies and pricing structures. This could lead to improved service and better insurance solutions tailored to individual needs, especially in high-risk areas for wind and hail events.

Summary

Senate Bill 2444 addresses the eligibility of surplus lines insurers to provide windstorm and hail insurance coverage. The bill amends Section 981.004 of the Insurance Code to clarify that the availability of such insurance from the Texas Windstorm Insurance Association does not impede eligible surplus lines insurers from offering similar coverage. This is significant as it allows for more competition in the insurance market, particularly for those seeking windstorm and hail insurance, which can be critical in regions prone to such weather events.

Contention

While the bill promotes competition in the insurance market, it may also raise concerns among some stakeholders. Critics might argue that it could lead to inconsistencies in coverage standards and pricing if surplus lines insurers are not held to the same regulatory requirements as the Texas Windstorm Insurance Association. This potential disparity could create challenges for consumers in understanding their insurance options and the protections available to them.