H.B. No. 2275 amends the Texas Insurance Code to establish specific requirements for arbitration provisions in surplus lines insurance contracts. The new legislation mandates that any surplus lines insurance contract for a risk located entirely within Texas and containing an arbitration agreement must stipulate that the arbitration will be conducted in Texas, unless both the insurer and policyholder agree to a different venue. In such cases, the insurer must provide written notice to the policyholder and offer a premium credit to cover any additional costs incurred due to the venue change. Additionally, the contract must be governed and interpreted according to Texas law.

The provisions outlined in the 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 or renewed before this date will continue to be governed by the existing law prior to the enactment of this bill. The effective date for this legislation is set for September 1, 2025.

Statutes affected:
Introduced: Insurance Code 981.101 (Insurance Code 981)
House Committee Report: Insurance Code 981.101 (Insurance Code 981)