Nonadmitted Insurers Disability Surplus Lines Insurance

Current law allows nonadmitted insurers to offer only property and casualty insurance as types of surplus lines insurance. The bill:

• Defines 'disability insurance' as insurance that is in excess of policy limits available from an admitted insurer, provides income replacement to an insured who becomes an individual with a disability while covered by a policy, and does not provide coverage for the diagnosis or treatment of an insured's disability; and
• Allows nonadmitted insurers to offer disability insurance as a type of surplus lines insurance.
  (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)