89R20723 SCL-D
By: Morgan, Barry, Johnson, Garcia Hernandez, H.B. No. 2275
Bryant, et al.
Substitute the following for H.B. No. 2275:
By: Dean C.S.H.B. No. 2275
A BILL TO BE ENTITLED
AN ACT
relating to arbitration provisions in certain 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) A surplus lines insurance contract for a risk located
wholly in this state and that contains an arbitration agreement
must provide that:
(1) the arbitration will be:
(A) conducted in this state unless:
(i) the insurer and policyholder agree to a
different venue after the insurer provides written notice to the
policyholder of the insurer's request for a different venue; and
(ii) the insurer provides the policyholder
with a premium credit for the costs incurred by the policyholder as
a result of the change in venue; and
(B) governed by the laws of this state; and
(2) the insurance contract will be interpreted in
accordance with the laws 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,
2026. A surplus lines insurance contract delivered, issued for
delivery, or renewed before January 1, 2026, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.