SB455 - Relating to arbitration provisions in certain surplus lines insurance contracts.

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