BILL ANALYSIS

H.B. 1940

By: Lucio III

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that there may be confusion among surplus lines insurers as to whether they may lawfully provide insurance coverage to residents of counties located in designated Texas Windstorm Insurance Association (TWIA) catastrophe areas. Expanding insurance options in these areas would benefit homeowners. H.B. 1940 seeks to address this issue by establishing that the availability of windstorm and hail insurance from TWIA does not preclude an eligible surplus lines insurer from providing windstorm and hail insurance or limiting the amount of insurance that may be provided.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1940 amends the Insurance Code to establish that the availability of windstorm and hail insurance from the Texas Windstorm Insurance Association does not preclude an eligible surplus lines insurer from providing windstorm and hail insurance or limiting the amount of insurance that may be provided.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.