Bill Analysis
HB 1559 would amend the Insurance Code to define “industrial insured” as a person who purchases commercial insurance and employs a risk manager, has paid commercial property and casualty insurance premiums of more than $25,000 in the past year, and has at least 25 full-time employees.
Next, the law that an eligible surplus lines insurer may provide surplus lines insurance only if the full amount of required insurance cannot be obtained would not apply to industrial insureds. An agent would be required to disclose that comparable insurance may be available from the admitted market that is subject to more regulatory oversight than the surplus lines market, and a policy purchased in the admitted market may provide greater protection than the surplus lines insurance policy.
Vote Recommendation Notes
While it is speculated that this legislation may add more insurance options, it would be more beneficial for the state to let insurers simply offer insurance products that the market demands at a price people are willing to pay. We remain neutral HB 1559.
