| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to arbitration provisions in certain insurance policies |
|
|
and 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 that contains an |
|
|
arbitration agreement must provide that: |
|
|
(1) the arbitration will be: |
|
|
(A) conducted in this state; 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. Subchapter A, Chapter 2301, Insurance Code, is |
|
|
amended by adding Section 2301.011 to read as follows: |
|
|
Sec. 2301.011. ARBITRATION PROVISIONS IN FORMS. (a) A form |
|
|
for use in writing insurance described by Section 2301.003 that |
|
|
contains an arbitration agreement must provide that: |
|
|
(1) the arbitration will be: |
|
|
(A) conducted in this state; and |
|
|
(B) governed by the laws of this state; and |
|
|
(2) the policy will be interpreted in accordance with |
|
|
the laws of this state. |
|
|
(b) The commissioner shall disapprove or withdraw approval |
|
|
of a form that violates this section. |
|
|
SECTION 3. (a) 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, |
|
|
2020. A surplus lines insurance contract delivered, issued for |
|
|
delivery, or renewed before January 1, 2020, 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. |
|
|
(b) Section 2301.011, Insurance Code, as added by this Act, |
|
|
applies only to an insurance policy delivered, issued for delivery, |
|
|
or renewed on or after January 1, 2020. A policy delivered, issued |
|
|
for delivery, or renewed before January 1, 2020, 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 4. This Act takes effect September 1, 2019. |