TX SB455

Surplus lines insurance contracts for risks located wholly in Texas that contain arbitration agreements must require arbitration to be conducted in Texas and governed by Texas law

Insurance contracts must be interpreted under Texas law unless the insurer and policyholder mutually agree to a different venue, with the insurer providing written notice and a premium credit to cover the policyholder's costs from the venue change

For surplus lines contracts exceeding $2 million in insured value, insurers and policyholders may mutually agree to arbitration in a different venue under another state's laws

Applies only to surplus lines insurance contracts delivered, issued, or renewed on or after January 1, 2026

Takes effect September 1, 2025; passed Senate 30-0 on April 10, 2025 and House 118-0 on May 10, 2025