TITLE: Relating to arbitration provisions in surplus lines insurance contracts.

SUMMARY: Relating to arbitration provisions in surplus lines insurance contracts.

FULL TEXT:
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.