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By: Middleton |
S.B. No. 796 |
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(In the Senate - Filed February 9, 2023; March 1, 2023, read |
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first time and referred to Committee on Business & Commerce; |
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March 22, 2023, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 10, Nays 0; March 22, 2023, |
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sent to printer.) |
| Click here to see the committee vote |
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COMMITTEE SUBSTITUTE FOR S.B. No. 796 |
By: Middleton |
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A BILL TO BE ENTITLED
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AN ACT
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relating to arbitration provisions in surplus lines insurance |
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contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 981.101, Insurance Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) An arbitration under a surplus lines insurance contract |
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that is related to a risk located entirely in this state must be |
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conducted in this state, and the arbitration agreement in the |
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insurance contract must be interpreted in accordance with the laws |
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of this state. This subsection applies to an arbitration under a |
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surplus lines insurance contract entered into in or outside of this |
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state. |
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SECTION 2. Section 981.101(d), Insurance Code, as added by |
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this Act, applies only to a surplus lines insurance contract |
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delivered, issued for delivery, or renewed on or after January 1, |
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2024. |
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SECTION 3. This Act takes effect September 1, 2023. |
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