SB 1491

85(R) - 2017
Senate Business & Commerce
Senate Business & Commerce

Companion Bill

HB 2492

Vote Recommendation

  • Positive
  • Neutral
  • Neutral
  • Positive
  • Neutral


Judith Zaffirini

Bill Caption

Relating to domestic surplus lines insurers; authorizing and imposing a tax.  

Fiscal Notes

From the Legislative Budget Board: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 1491 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 subject the premium and a domestic surplus lines insurer to an applicable maintenance 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. Though this bill could go further to deregulate the insurance industry it is a positive step forward and we support SB 1491. 

Organizations Supporting

American Insurance Association
Property Casualty Insurers Association of America