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AN ACT
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relating to arbitration provisions in certain surplus lines |
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insurance 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 Subsections (d) and (e) to read as follows: |
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(d) A surplus lines insurance contract for a risk located |
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wholly in this state and that contains an arbitration agreement |
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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 unless: |
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(A) the insurer and policyholder agree to a |
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different venue after the insurer provides written notice to the |
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policyholder of the insurer's request for a different venue; and |
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(B) the insurer provides the policyholder with a |
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premium credit for the costs incurred by the policyholder as a |
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result of the change in venue. |
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(e) Notwithstanding Subsection (d), for surplus lines |
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insurance contracts for over $2 million in insured value, the |
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insurer and policyholder may agree by mutual consent to a different |
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arbitration venue and governance under another state's laws, |
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provided the agreement is in a form. |
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SECTION 2. Sections 981.101(d) and (e), Insurance Code, as |
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added by this Act, apply 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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2026. A surplus lines insurance contract delivered, issued for |
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delivery, or renewed before January 1, 2026, 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, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 455 passed the Senate on |
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April 10, 2025, by the following vote: Yeas 30, Nays 0; and that |
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the Senate concurred in House amendment on May 14, 2025, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 455 passed the House, with |
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amendment, on May 10, 2025, by the following vote: Yeas 118, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |