Bill Text: TX SB796 | 2023-2024 | 88th Legislature | Introduced

Texas Senate Bill 796

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relating to arbitration provisions in surplus lines insurance contracts.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Vetoed) 2023-06-17 - Vetoed by the Governor [SB796 Detail]

Download: Texas-2023-SB796-Introduced.html

	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.