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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) A surplus lines insurance contract that contains an |
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arbitration agreement must provide that: |
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(1) the arbitration will be: |
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(A) conducted in this state; and |
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(B) governed by the laws of this state; and |
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(2) the insurance contract will be interpreted in |
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accordance with the laws of this 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. A surplus lines insurance contract delivered, issued for |
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delivery, or renewed before January 1, 2024, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |