HB 2275

AN ACT relating to arbitration provisions in surplus lines insurance

House Bill Morgan | Barry | Johnson | Garcia Hernandez, Cassandra | Bryant
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Requires surplus lines insurance contracts with arbitration agreements to be conducted and governed in Texas, using Texas state laws for interpretation. The new requirements will apply to insurance contracts delivered, issued, or renewed on or after January 1, 2026, providing clearer legal standards for surplus lines insurance arbitration. This change ensures that disputes related to these insurance contracts will be resolved within the state's legal framework, offering more predictability and consistency for businesses and insurers.

Subject Areas

Bill Text

relating to arbitration provisions in surplus lines insurance
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:
(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,
2026. A surplus lines insurance contract delivered, issued for
delivery, or renewed before January 1, 2026, 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, 2025.

Bill History

filed

Bill filed: AN ACT relating to arbitration provisions in surplus lines insurance