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A BILL TO BE ENTITLED
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AN ACT
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relating to arbitration related to certain risks under certain |
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insurance policies and contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 941, Insurance Code, is |
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amended by adding Section 941.157 to read as follows: |
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Sec. 941.157. ARBITRATION IN TEXAS. (a) An arbitration |
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under an insurance policy or contract written by a Lloyd's plan that |
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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 policy or contract must be interpreted in accordance with |
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the laws of this state. |
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(b) This section applies to an arbitration under an |
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insurance policy or contract written by a Lloyd's plan entered into |
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in or outside of this state. |
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SECTION 2. Subchapter B, Chapter 981, Insurance Code, is |
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amended by adding Section 981.067 to read as follows: |
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Sec. 981.067. ARBITRATION IN TEXAS. (a) An arbitration |
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under a surplus lines insurance contract that is related to a risk |
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located entirely in this state must be conducted in this state, and |
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the arbitration agreement in the insurance contract must be |
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interpreted in accordance with the laws of this state. |
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(b) This section applies to an arbitration under a surplus |
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lines insurance contract entered into in or outside of this state. |
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SECTION 3. (a) Section 941.157, Insurance Code, as added by |
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this Act, applies only to an insurance policy or contract written by |
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a Lloyd's plan delivered, issued for delivery, or renewed on or |
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after January 1, 2020. |
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(b) Section 981.067, Insurance Code, as added by this Act, |
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applies only to a surplus lines insurance contract delivered, |
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issued for delivery, or renewed on or after January 1, 2020. |
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SECTION 4. This Act takes effect September 1, 2019. |