86R3030 JES-D
By: Lucio III H.B. No. 1648
A BILL TO BE ENTITLED
AN ACT
relating to arbitration provisions in certain insurance policies
and contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 981.101, Insurance Code, is amended by
adding Subsection (d) to read as follows:
(d) A surplus lines insurance contract that contains an
arbitration agreement must provide that:
(1) the arbitration will be:
(A) conducted in this state; and
(B) governed by the laws of this state; and
(2) the insurance contract will be interpreted in
accordance with the laws of this state.
SECTION 2. Subchapter A, Chapter 2301, Insurance Code, is
amended by adding Section 2301.011 to read as follows:
Sec. 2301.011. ARBITRATION PROVISIONS IN FORMS. (a) A form
for use in writing insurance described by Section 2301.003 that
contains an arbitration agreement must provide that:
(1) the arbitration will be:
(A) conducted in this state; and
(B) governed by the laws of this state; and
(2) the policy will be interpreted in accordance with
the laws of this state.
(b) The commissioner shall disapprove or withdraw approval
of a form that violates this section.
SECTION 3. (a) Section 981.101(d), Insurance Code, as added
by this Act, applies only to a surplus lines insurance contract
delivered, issued for delivery, or renewed on or after January 1,
2020. A surplus lines insurance contract delivered, issued for
delivery, or renewed before January 1, 2020, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(b) Section 2301.011, Insurance Code, as added by this Act,
applies only to an insurance policy delivered, issued for delivery,
or renewed on or after January 1, 2020. A policy delivered, issued
for delivery, or renewed before January 1, 2020, is governed by the
law as it existed immediately before the effective date of this Act,
and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2019.