Public Announcements

DFW RIMS External Affairs Committee | June Update
Tracking Policy, Courts & Advocacy Shaping the Risk Landscape

The External Affairs Committee continues to track legislative discussions in the run-up to the 90th legislative session. As more information is received, we will continue to report to members on any new headlines. Here is a recap of what is going on in the political environment down in Austin.

🏛️ Potential Revival of SB 30 – Tort Reform Outlook

SB 30, the failed tort reform bill aimed at drastically changing how damages are calculated and presented in personal injury and wrongful death lawsuits, may see a resurrection in the 90th session. Commentary from business groups, insurers, and legal analysts suggests the proposal could see a return in 2027 in some capacity. This is favorable news for risk management leaders and insurance carriers that have been yearning for the types of tort reforms that are seeing success on the Gulf coast.   

🏛️ Final Reminder: SERFF Filing Deadline – June 1, 2026

As a reminder following Commissioner's Bulletin #B-0001-26, the absolute final deadline for carriers to submit their updated SERFF rate filings is June 1, 2026. Carriers planning to write or renew coverage on or after July 1 must adjust their rate bases to align with TDI's accepted NCCI advisory loss cost filing, which maps out an overall average 3.8% decrease across the state. 

🏛️ BESS Regulatory Framework – Emerging Property Risk Focus

Last month, TDI and the State Fire Marshal’s Office finalized public feedback on a new safety framework targeting the rapid expansion of utility-scale Battery Energy Storage Systems (BESS) across the Texas grid. For commercial property insurers and renewable energy risk managers, these impending rules mandate rigorous thermal runaway mitigation, structural safety, and fire code benchmarks. Ultimately, this regulatory framework will standardize risk engineering criteria and directly shape future capacity appetites for lithium-ion storage portfolios in the state.

💡 Strategic Outlook

Taken together, the continued focus on tort reform, insurance affordability, rate regulation, and emerging energy-sector risks suggests that insurance market oversight will remain a significant policy priority for Texas lawmakers entering the next legislative cycle.

🏛️ Recent Texas Supreme Court Decisions

In re Home Depot U.S.A., Inc. (May 2026)

The Texas Supreme Court ruled that "passive shippers" owe no legal duty of care to the motoring public for the actions of independent, federally regulated commercial motor carriers. For risk managers and commercial auto insurers, this establishes that hiring a third-party logistics provider to haul ordinary cargo does not trigger "negligent hiring" liability, provided the shipper lacks operational control over the driver. Consequently, this shields cargo-owning clients from "nuclear verdicts" and confirms that underwriting exposure for over-the-road accidents remains concentrated with the actual motor carrier.

K&K Inez Properties, LLC v. Kolle (May 2026)

The Texas Supreme Court held that the state's statutory cap on exemplary (punitive) damages must be calculated based strictly on an individual defendant’s proportionate share of economic damages, rather than the aggregate pool. This unanimous decision eliminates inflated punitive windfalls in multi-defendant property suits by preventing trial courts from multiplying the statutory cap per plaintiff for a single, joint injury. Ultimately, this tightens exposure predictability under Texas Chapter 41, ensuring any reduction in actual economic damages forces a downward recalculation of tethered punitive awards.

S&B Engineers & Constructors / Zurich v. Scallon Controls (March 2026)

A divided Texas Supreme Court ruled that a corporate defendant's voluntary settlement with an injured party does not extinguish its contractual rights to pursue proportionate indemnity from a non-settling subcontractor. For commercial liability carriers, this 5-4 decision provides a critical subrogation pathway to recoup settlement dollars, confirming that standard comparative indemnity clauses bypass the strict "express negligence" doctrine when only seeking the subcontractor's allocable share of fault. However, it places a heavy post-settlement burden on carriers to independently prove the settlement was reasonable and that the subcontractor's negligence directly caused the loss.

🏛️ Recent Nuclear Verdicts - Texas

Compared to last month where we witnessed two jury verdicts in civil tort cases exceeding one billion dollars, this month there was much less action. 
 
$49 million Trucking Wrongful Death (West Texas)

On May 22, 2026, a jury in Ector County awarded $49 million to a Midland family related to a wrongful death lawsuit. The jury found the truck driver and his employer responsible for the loss of one individual in a 2025 collision. The DPS found the truck driver failed to yield the right-of-way to another driver resulting in a fatal crash.

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Interested in getting involved?

The External Affairs Committee welcomes insurance professionals and attorneys who want to stay engaged in legislative, regulatory, and legal developments impacting the industry. Join us as we continue to monitor key issues and help shape meaningful dialogue across Texas.

Cory Mangum  
DFW RIMS External Affairs Committee Chair
[email protected]