88R7327 JES-D
 
  By: Middleton S.B. No. 796
 
 
 
A BILL TO BE ENTITLED
 
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)  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.  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,
  2024. A surplus lines insurance contract delivered, issued for
  delivery, or renewed before January 1, 2024, 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 3.  This Act takes effect September 1, 2023.