85(R) - 2017
Relating to domestic surplus lines insurers; authorizing and imposing a tax.
From the LBB: no significant fiscal implication to the state is anticipated.
HB 2492 would amend the Insurance Code to allow a property and casualty insurance company that has capital and surplus totaling at least $15 million to apply to the Department of Insurance to be designated as a domestic surplus lines insurer. A domestic surplus lines insurer would only be permitted to insure a risk in the state if the insurance is procured as eligible surplus lines insurance and the insurance is a type of insurance the insurer is authorized to write. The premium for a surplus lines policy would be subject to the premium tax.
Vote Recommendation Notes
Currently, the Company Licensing and Registration Office is responsible for registering surplus lines insurers. By definition, surplus lines companies are not licensed to sell insurance in Texas. This bill allows certified property and casualty insurers to sell surplus lines which enhances our free market and limited government principles, making it easier to earn a living. We support HB 2492.