The bill amends the Texas Insurance Code by adding a new subsection to Section 981.101, which pertains to arbitration provisions in surplus lines insurance contracts. Specifically, it mandates that any surplus lines insurance contract containing an arbitration agreement must stipulate that the arbitration will be conducted and governed by the laws of Texas. Additionally, it requires that the insurance contract itself be interpreted according to Texas law.

The new provisions will apply only to surplus lines insurance contracts that are delivered, issued for delivery, or renewed on or after January 1, 2026. Contracts that fall under the previous law will continue to be governed by the existing regulations until that date. The bill is set to take effect on September 1, 2025.

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