S.B. No. 796
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 insurance contract, including the
arbitration agreement, must be interpreted in accordance with the
laws of this state. This subsection may not be construed as a
defense to the enforcement of:
(1) an arbitration agreement that complies with or has
been reformed to comply with this subsection; or
(2) an award made under an agreement described by
Subdivision (1).
SECTION 2. Section 981.101(d), Insurance Code, as added by
this Act, applies only to an arbitration commenced on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 796 passed the Senate on
March 30, 2023, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 25, 2023, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 796 passed the House, with
amendments, on May 19, 2023, by the following vote: Yeas 136,
Nays 3, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor