TX
Texas House Bill HB1648

Texas 2019 - 86th Regular

Texas House Bill HB1648 Compare Versions

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1-86R27474 JES-D
2- By: Lucio III, Hunter H.B. No. 1648
3- Substitute the following for H.B. No. 1648:
4- By: Lucio III C.S.H.B. No. 1648
1+86R3030 JES-D
2+ By: Lucio III H.B. No. 1648
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
9- relating to arbitration related to certain risks under certain
10- insurance policies and contracts.
7+ relating to arbitration provisions in certain insurance policies
8+ and contracts.
119 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Subchapter D, Chapter 941, Insurance Code, is
13- amended by adding Section 941.157 to read as follows:
14- Sec. 941.157. ARBITRATION IN TEXAS. (a) An arbitration
15- under an insurance policy or contract written by a Lloyd's plan that
16- is related to a risk located entirely in this state must be
17- conducted in this state, and the arbitration agreement in the
18- insurance policy or contract must be interpreted in accordance with
10+ SECTION 1. Section 981.101, Insurance Code, is amended by
11+ adding Subsection (d) to read as follows:
12+ (d) A surplus lines insurance contract that contains an
13+ arbitration agreement must provide that:
14+ (1) the arbitration will be:
15+ (A) conducted in this state; and
16+ (B) governed by the laws of this state; and
17+ (2) the insurance contract will be interpreted in
18+ accordance with the laws of this state.
19+ SECTION 2. Subchapter A, Chapter 2301, Insurance Code, is
20+ amended by adding Section 2301.011 to read as follows:
21+ Sec. 2301.011. ARBITRATION PROVISIONS IN FORMS. (a) A form
22+ for use in writing insurance described by Section 2301.003 that
23+ contains an arbitration agreement must provide that:
24+ (1) the arbitration will be:
25+ (A) conducted in this state; and
26+ (B) governed by the laws of this state; and
27+ (2) the policy will be interpreted in accordance with
1928 the laws of this state.
20- (b) This section applies to an arbitration under an
21- insurance policy or contract written by a Lloyd's plan entered into
22- in or outside of this state.
23- SECTION 2. Subchapter B, Chapter 981, Insurance Code, is
24- amended by adding Section 981.067 to read as follows:
25- Sec. 981.067. ARBITRATION IN TEXAS. (a) An arbitration
26- under a surplus lines insurance contract that is related to a risk
27- located entirely in this state must be conducted in this state, and
28- the arbitration agreement in the insurance contract must be
29- interpreted in accordance with the laws of this state.
30- (b) This section applies to an arbitration under a surplus
31- lines insurance contract entered into in or outside of this state.
32- SECTION 3. (a) Section 941.157, Insurance Code, as added by
33- this Act, applies only to an insurance policy or contract written by
34- a Lloyd's plan delivered, issued for delivery, or renewed on or
35- after January 1, 2020.
36- (b) Section 981.067, Insurance Code, as added by this Act,
37- applies only to a surplus lines insurance contract delivered,
38- issued for delivery, or renewed on or after January 1, 2020.
29+ (b) The commissioner shall disapprove or withdraw approval
30+ of a form that violates this section.
31+ SECTION 3. (a) Section 981.101(d), Insurance Code, as added
32+ by this Act, applies only to a surplus lines insurance contract
33+ delivered, issued for delivery, or renewed on or after January 1,
34+ 2020. A surplus lines insurance contract delivered, issued for
35+ delivery, or renewed before January 1, 2020, is governed by the law
36+ as it existed immediately before the effective date of this Act, and
37+ that law is continued in effect for that purpose.
38+ (b) Section 2301.011, Insurance Code, as added by this Act,
39+ applies only to an insurance policy delivered, issued for delivery,
40+ or renewed on or after January 1, 2020. A policy delivered, issued
41+ for delivery, or renewed before January 1, 2020, is governed by the
42+ law as it existed immediately before the effective date of this Act,
43+ and that law is continued in effect for that purpose.
3944 SECTION 4. This Act takes effect September 1, 2019.