By: Middleton, Menéndez S.B. No. 796
A BILL TO BE ENTITLED
AN ACT
relating to arbitration provisions in surplus lines insurance
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) An arbitration under a surplus lines insurance contract
that is related to a risk located entirely in this state must be
conducted in this state, and the arbitration agreement in the
insurance contract must be interpreted in accordance with the laws
of this state. This subsection applies to an arbitration under a
surplus lines insurance contract entered into in or outside of this
state.
SECTION 2. 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,
2024.
SECTION 3. This Act takes effect September 1, 2023.