2017 Legislative Issues

Key IIAT legislative issues for the 85th Session:   

Hail Litigation Reform - HB 1774

Signed by Gov. Abbott; effective 9/1/17

IIAT supports meaningful reform for runaway litigation following a catastrophic event. Likewise, the association supports efforts of TLR and TCJL that will reduce frivolous claims which threaten the marketplace in affected areas of the state. 

  • Stops the mass tort litigation following natural catastrophe’s
  • 60 day “pre-suit” notice is now required with $ amount of loss disclosed
  • Inflated, fraudulent claims can result in no legal fees to plaintiff attorney
  • Insurer can assume the liability of agent to avoid venue shopping

Surplus Lines Freedom for Sophisticated Commercial Purchasers - HB 1559

Signed by Gov. Abbott; effective 8/1/17

Retail agents have historically struggled with the issue of following a confusing statute as it relates to the placement of insurance with an admitted market. IIAT believes that larger sophisticated commercial insurance purchasers can make an educated decision about what option is the best for their specific circumstance.

  • Eliminates “diligent effort” search if certain conditions are met
  • Allows agents to offer standard and surplus lines options to sophisticated commercial buyers
  • Puts financial requirements in place – AM Best A- or better surplus lines companies only

Notice of Coverage Change on Personal Policies - SB 417

Signed by Gov. Abbott; effective 9/1/17

Chapter 2002 of the Insurance Code requires that notification of changes in coverage must be provided; however, there is no requirement of where the notification is located or when the notification must be made.

  • Insurers must now advise agents and consumers of changes to a policy before renewal
  • Notification must be in plain language
  • Insurors no longer have to send “non-renewal” letters when a change is made

Protecting Agents/TWIA Reciprocity - HB 3018

Awaiting Gov. Abbott's signature

Access to Louisiana Citizens has been restricted to “resident agents “only. This bill will allow access to TWIA for non-resident agents of any state that has not excluded Texas agents' access to their wind facility.  

  • Louisiana excluded Texas agents access to their wind pool so IIAT worked to pass HB 3018 
  • States that exclude Texas agents will now be excluded from TWIA
  • Resulting in Louisiana now working to reinstate our access to their facility

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Contact Governmental Affairs

H. Lee Loftis, Jr.
Gov. Affairs Director

Jill Douglas

Director of Development