The bill, S.B. No. 455, amends the Texas Insurance Code to establish specific requirements for arbitration provisions in surplus lines insurance contracts. It introduces a new subsection (d) to Section 981.101, which mandates that any surplus lines insurance contract containing an arbitration agreement must specify that the arbitration will be conducted and governed by the laws of Texas. Additionally, it requires that the insurance contract be interpreted in accordance with Texas law.

The provisions of this bill will apply only to surplus lines insurance contracts that are delivered, issued for delivery, or renewed on or after January 1, 2026. Contracts that are delivered, issued for delivery, or renewed before this date will continue to be governed by the existing law prior to the enactment of this bill. The effective date of the bill is set for September 1, 2025.

Statutes affected:
Introduced: Insurance Code 981.101 (Insurance Code 981)