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Bill

HB 2275

Relating to arbitration provisions in certain surplus lines insurance contracts.

89th Legislature (2025) Introduced by Daniel Alders and 99 co-sponsors

Bill modifies Texas arbitration requirements in surplus lines insurance contracts, affecting dispute resolution for hard-to-insure commercial and individual policyholders.

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#insurance--general(i0445) #insurance--insurers&agents(i0425) #mediation #disputeresolution #&arbitration(s8683)
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Bill Summary · HB 2275

Legislative bill overview

HB 2275 modifies Texas law governing arbitration clauses in surplus lines insurance contracts—policies issued by non-admitted insurers for hard-to-insure risks. The bill appears to establish or clarify requirements around how arbitration provisions must be structured or disclosed in these specialized insurance agreements. This addresses a niche but significant area of commercial insurance regulation.

Why is this important

Surplus lines insurance serves businesses and individuals who cannot obtain coverage through standard insurers, making arbitration clause terms directly affect dispute resolution options for high-risk clients. The legislation could impact whether policyholders retain court access or must submit claims to private arbitration, affecting legal protections and remedies available. This is particularly significant for commercial entities that may lack bargaining power to negotiate contract terms.

Potential points of contention

  • Mandatory arbitration vs. court access: Whether insurers can require binding arbitration limits policyholders' ability to appeal disputes through the judicial system
  • Disclosure and transparency: Ambiguity over how clearly arbitration terms must be presented to consumers, particularly smaller businesses unfamiliar with surplus lines markets
  • Enforceability standards: What specific language or formatting requirements must arbitration provisions meet to be valid under Texas law, potentially creating compliance burdens on insurers

Compiled from official sources — confirm details with the bill’s official record.

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