Bill Text: TX SB455 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to arbitration provisions in certain surplus lines insurance contracts.

Sponsorship: Broadly Bipartisan Bill

Status: (Passed) 2025-05-27 - Effective on 9/1/25 [SB455 Detail]

Download: Texas-2025-SB455-Enrolled.html

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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