| 1 | 1 | | 88R7327 JES-D |
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| 2 | 2 | | By: A. Johnson of Harris H.B. No. 5144 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to arbitration provisions in surplus lines insurance |
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| 8 | 8 | | contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 981.101, Insurance Code, is amended by |
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| 11 | 11 | | adding Subsection (d) to read as follows: |
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| 12 | 12 | | (d) A surplus lines insurance contract that contains an |
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| 13 | 13 | | arbitration agreement must provide that: |
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| 14 | 14 | | (1) the arbitration will be: |
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| 15 | 15 | | (A) conducted in this state; and |
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| 16 | 16 | | (B) governed by the laws of this state; and |
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| 17 | 17 | | (2) the insurance contract will be interpreted in |
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| 18 | 18 | | accordance with the laws of this state. |
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| 19 | 19 | | SECTION 2. Section 981.101(d), Insurance Code, as added by |
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| 20 | 20 | | this Act, applies only to a surplus lines insurance contract |
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| 21 | 21 | | delivered, issued for delivery, or renewed on or after January 1, |
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| 22 | 22 | | 2024. A surplus lines insurance contract delivered, issued for |
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| 23 | 23 | | delivery, or renewed before January 1, 2024, is governed by the law |
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| 24 | 24 | | as it existed immediately before the effective date of this Act, and |
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| 25 | 25 | | that law is continued in effect for that purpose. |
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| 26 | 26 | | SECTION 3. This Act takes effect September 1, 2023. |
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