| 1 | 1 | | S.B. No. 796 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to arbitration provisions in surplus lines insurance |
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| 6 | 6 | | contracts. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 981.101, Insurance Code, is amended by |
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| 9 | 9 | | adding Subsection (d) to read as follows: |
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| 10 | 10 | | (d) An arbitration under a surplus lines insurance contract |
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| 11 | 11 | | that is related to a risk located entirely in this state must be |
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| 12 | 12 | | conducted in this state, and the insurance contract, including the |
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| 13 | 13 | | arbitration agreement, must be interpreted in accordance with the |
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| 14 | 14 | | laws of this state. This subsection may not be construed as a |
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| 15 | 15 | | defense to the enforcement of: |
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| 16 | 16 | | (1) an arbitration agreement that complies with or has |
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| 17 | 17 | | been reformed to comply with this subsection; or |
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| 18 | 18 | | (2) an award made under an agreement described by |
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| 19 | 19 | | Subdivision (1). |
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| 20 | 20 | | SECTION 2. Section 981.101(d), Insurance Code, as added by |
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| 21 | 21 | | this Act, applies only to an arbitration commenced on or after the |
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| 22 | 22 | | effective date of this Act. |
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| 23 | 23 | | SECTION 3. This Act takes effect September 1, 2023. |
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| 24 | 24 | | ______________________________ ______________________________ |
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| 25 | 25 | | President of the Senate Speaker of the House |
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| 26 | 26 | | I hereby certify that S.B. No. 796 passed the Senate on |
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| 27 | 27 | | March 30, 2023, by the following vote: Yeas 31, Nays 0; and that |
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| 28 | 28 | | the Senate concurred in House amendments on May 25, 2023, by the |
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| 29 | 29 | | following vote: Yeas 31, Nays 0. |
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| 30 | 30 | | ______________________________ |
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| 31 | 31 | | Secretary of the Senate |
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| 32 | 32 | | I hereby certify that S.B. No. 796 passed the House, with |
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| 33 | 33 | | amendments, on May 19, 2023, by the following vote: Yeas 136, |
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| 34 | 34 | | Nays 3, two present not voting. |
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| 35 | 35 | | ______________________________ |
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| 36 | 36 | | Chief Clerk of the House |
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| 37 | 37 | | Approved: |
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| 38 | 38 | | ______________________________ |
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| 39 | 39 | | Date |
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| 40 | 40 | | ______________________________ |
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| 41 | 41 | | Governor |
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