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Petition For Review

Nautilus Ins. Co. v. HOF Partners LLC

Case No. 23-0408

Key Issues

Factual History

HOF Partners paid premiums for a surplus-lines policy from Nautilus Insurance to its retail broker, Summit, which never sent them to the surplus-lines agent, Breckenridge, or to Nautilus, and Nautilus canceled the policy under its terms. HOF argued that Summit acted as Nautilus's agent under a payment plan in the application because it collected premiums, while Nautilus argued that only a licensed surplus-lines agent can accept premium payments on behalf of the insurer under Insurance Code § 981.007.1

Sources
  1. Brief on the Merits (Petitioner), PDF pp. 15, 33-34; Brief on the Merits (Respondent), PDF pp. 12, 40 ↩

Procedural History

The Fort Worth Second Court of Appeals held that Chapter 4001's agency provisions apply and that there was a fact issue whether Summit accepted premiums on Nautilus's behalf (2023 WL 3114309). The Court requested merits briefing and denied the petition for review on November 15, 2024, with Justices Lehrmann and Devine not participating; it denied Nautilus's motion for rehearing on June 27, 2025, after four amicus briefs urged rehearing.

Petition for review from the Second Court of Appeals; petition denied November 15, 2024, and rehearing denied June 27, 2025 (Docket).

Issues Presented

Whether only a registered surplus-lines agent can accept premium payments for a surplus-lines policy under Chapter 981 of the Insurance Code, or whether Chapter 4001's general provisions make any person who collects premiums the insurer's agent.1

Sources
  1. Brief on the Merits (Petitioner), PDF p. 15; Statement, PDF p. 2 ↩

Legal Arguments

Nautilus (Petitioner): Chapter 4001 applies only to insurers regulated by the Department of Insurance, surplus-lines insurers are not, and the specific surplus-lines provisions of Chapter 981 control.

HOF Partners (Respondent): surplus-lines insurers are regulated, Chapter 4001 applies, and there is a genuine fact issue whether Summit had authority to collect premiums.1

Sources
  1. Brief on the Merits (Petitioner), PDF pp. 33-34; Brief on the Merits (Respondent), PDF pp. 12, 40 ↩

Stated Reasons the Court Should Take the Case

Not applicable⁠—the petition was denied.

Amicus Involvement

None noted

Summary of Opinion

Reasoning

The statement said the motion and amicus briefs persuasively showed that the legal questions warrant full consideration, that denial expresses no view of the merits under Loram Maintenance of Way v. Ianni, that other courts should exercise independent judgment on similar questions, and that if amici's predicted market disruption occurs the Court will have further opportunities, likely sooner rather than later.1

Disposition

Motion for rehearing denied; Justices Lehrmann and Devine did not participate (Docket).

Vote Breakdown

Justice Young, joined by Justice Sullivan, issued a statement saying they would grant rehearing and the petition.2

Sources
  1. Statement, PDF pp. 1-3 ↩
  2. Statement, PDF pp. 1-3 ↩

The Docket

The following is current as of October 9, 2026.

DateEvent
08/25/2023Petition for Review (Nautilus Insurance Company)
01/08/2024Response to Petition (HOF Partners LLC)
01/19/2024Reply to Response (Nautilus Insurance Company)
03/08/2024Brief on the Merits Ordered
06/07/2024Petitioner's Brief on the Merits
08/13/2024Respondent's Brief on the Merits (HOF Partners LLC)
08/15/2024Respondent's Brief on the Merits (HOF Partners LLC)
09/18/2024Reply Brief (Nautilus Insurance Company)
06/18/2025Reply to Response to Motion for Rehearing filed (Nautilus Insurance Company)
06/27/2025Motion for Rehearing - Disposed
06/27/2025Statement Issued
Statement of Justice Young and Justice Sullivan respecting the denial of the motion for rehearing.
—Statement of Justice Young and Justice Sullivan
Full case docket for 23-0408search.txcourts.gov →