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

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

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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

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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.