HOUSTON — Effective September 1, Senate Bill 1093 will change the laws governing reinsurance, allowing Texas-based companies to compete on par with insurers nationwide.
GSFSGroup officials said the company was instrumental in supporting the bill, working closely with Senator Brandon Creighton who authored the bill and its House of Representatives sponsor, Representative Kenneth Sheets.
Identifying the need for Texas reinsurance law to change and align more closely with other states’ regulations, GSFSGroup sought regulatory guidance from the Texas Department of Insurance and began working in Fall 2013 to prepare the first proposal. SB-1093 removes a restriction to now make Texas law consistent with the National Association of Insurance Commissioner’s Model Law and Regulation and the laws of 48 other states (Minnesota is the other exception).
Throughout the process, GSFSGroup and its lobbyists from Gardere Wynne Sewell LLP actively worked with both legislative chambers to educate and build consensus for the bill by meeting with legislators and testifying before the House Insurance Committee and the Senate Business and Commerce Committee. The bill was passed through committees and full chambers and signed into law by Governor Greg Abbott on May 22.
“This change is positive for both GSFSGroup and our dealers. We will now have the flexibility needed to make optimal investments to secure higher returns for our customers,” said Diane Greene, vice president of legal affairs for the GSFSGroup. “Senator Creighton and Representative Sheets were great champions for this change and I have great respect for their commitment to representing the best interests of Texans and Texas-based companies.”
“GSFSGroup’s continued growth is tied to our ability to make solid and robust investments to back our reinsurance agreements,” said GSFSGroup President Steve Amos. “To support the transition from a regional to a national business, it is vital that we compete on a level playing field with companies based in other states.”