Texas has opened a new lane for surplus lines carriers, giving them more flexibility to serve consumer groups.
With House Bill 3388, passed in May and taking effect September 1, the state now allows insurers to issue group property & casualty insurance policies to “permitted groups” of ten or more people with a preexisting relationship, such as members of a trade association or affinity group.
These policies, available through both admitted and surplus lines markets, must deliver economies of scale and can't cap claims through shared aggregate limits, a critical protection for certificate holders. The shift could potentially open new revenue channels, reduce administrative hurdles, and increase coverage accessibility across the board.
The law also offers meaningful relief for surplus lines agents. Rather than proving a diligent effort to place coverage for each member individually, agents now only need to do it once per year for the group as a whole. They’re also no longer required to report individual certificates to the Surplus Lines Stamping Office, only the master group policy.
Consumer transparency is another key change. Insurers must disclose up front whether the policy includes any shared limits. And within 30 days of issuing or renewing a policy, they must give each member a copy of the full policy and their certificate of insurance.
Additionally, the law creates a carveout for non-licensed “group enrollers” who help manage these policies, allowing them to assist without holding a producer license, so long as they’re not earning commissions.
