Bill Text: TX HB2257 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to notice of certain provisions in insurance policies issued by surplus lines insurers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-09 - Referred to Insurance [HB2257 Detail]
Download: Texas-2023-HB2257-Introduced.html
88R7328 JES-D | ||
By: Cain | H.B. No. 2257 |
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relating to notice of certain provisions in insurance policies | ||
issued by surplus lines insurers. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter C, Chapter 981, Insurance Code, is | ||
amended by adding Section 981.106 to read as follows: | ||
Sec. 981.106. NOTICE REQUIREMENTS FOR CERTAIN PROVISIONS IN | ||
SURPLUS LINES POLICIES. (a) A surplus lines insurer must provide | ||
written notice to an insured if the surplus lines insurance policy: | ||
(1) subjects the insured to the jurisdiction or laws | ||
of another state or country; | ||
(2) requires the insured to submit to arbitration in | ||
another state or country or under the laws of another state or | ||
country; | ||
(3) includes a deductible that exceeds the replacement | ||
cost of any structural component of the covered property; or | ||
(4) provides that the insurer will only pay the actual | ||
cash value for the repair or replacement of a structural component | ||
of the covered property. | ||
(b) A notice provided under Subsection (a) must be: | ||
(1) signed and notarized by the surplus lines agent | ||
and the insured; and | ||
(2) retained by the insurer until the fifth | ||
anniversary of the date the insured's policy terminates. | ||
(c) An insured is entitled to void a provision described by | ||
Subsection (a) in a surplus lines insurance policy if the insurer | ||
does not disclose or retain documentation of the notice provided to | ||
the insured regarding the provision in accordance with this | ||
section. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
a surplus lines insurance policy delivered, issued for delivery, or | ||
renewed on or after January 1, 2024. | ||
SECTION 3. This Act takes effect September 1, 2023. |