| 3 | 2 | | |
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| 4 | 3 | | |
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| 5 | 4 | | |
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| 6 | 5 | | |
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| 7 | 6 | | A BILL TO BE ENTITLED |
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| 8 | 7 | | AN ACT |
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| 9 | 8 | | relating to arbitration provisions in certain surplus lines |
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| 10 | 9 | | insurance contracts. |
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| 11 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 11 | | SECTION 1. Section 981.101, Insurance Code, is amended by |
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| 13 | 12 | | adding Subsection (d) to read as follows: |
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| 14 | 13 | | (d) A surplus lines insurance contract for a risk located |
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| 15 | 14 | | wholly in this state and that contains an arbitration agreement |
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| 16 | 15 | | must provide that: |
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| 17 | 16 | | (1) the arbitration will be: |
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| 18 | 17 | | (A) conducted in this state unless: |
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| 19 | 18 | | (i) the insurer and policyholder agree to a |
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| 20 | 19 | | different venue after the insurer provides written notice to the |
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| 21 | 20 | | policyholder of the insurer's request for a different venue; and |
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| 22 | 21 | | (ii) the insurer provides the policyholder |
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| 23 | 22 | | with a premium credit for the costs incurred by the policyholder as |
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| 24 | 23 | | a result of the change in venue; and |
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| 25 | 24 | | (B) governed by the laws of this state; and |
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| 26 | 25 | | (2) the insurance contract will be interpreted in |
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| 27 | 26 | | accordance with the laws of this state. |
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| 28 | 27 | | SECTION 2. Section 981.101(d), Insurance Code, as added by |
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| 29 | 28 | | this Act, applies only to a surplus lines insurance contract |
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| 30 | 29 | | delivered, issued for delivery, or renewed on or after January 1, |
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| 31 | 30 | | 2026. A surplus lines insurance contract delivered, issued for |
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| 32 | 31 | | delivery, or renewed before January 1, 2026, is governed by the law |
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| 33 | 32 | | as it existed immediately before the effective date of this Act, and |
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| 34 | 33 | | that law is continued in effect for that purpose. |
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| 35 | 34 | | SECTION 3. This Act takes effect September 1, 2025. |
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