Chad T. Wilson Law Firm Supports Landmark Reforms in Surplus Lines Insurance Arbitration with Passage of HB 2275/SB 455

Business Wire

HOUSTON--(BUSINESS WIRE)--
The Chad T. Wilson Law Firm proudly announces its support for and involvement in the passage of House Bill 2275/Senate Bill 455—a transformative legislation that reforms arbitration procedures in surplus lines insurance contracts for Texas policyholders.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250731397275/en/

Under previous practices, surplus lines insurance contracts included provisions requiring disputes that originated in Texas to be resolved out of state and not under Texas laws. This placed a significant burden on Texas policyholders and undermined state-level legal protections.

HB 2275/SB 455 addresses this issue by mandating that arbitration for surplus lines insurance policies must be conducted within the state and governed by Texas law.

These changes ensure that insurance contract disputes will now be resolved on Texas soil, under Texas statutes. The legislation also includes provisions allowing an alternative arbitration venue only if both the insurer and policyholder consent post-arbitrator selection—and only if the insurer provides a written request along with a premium credit to the policyholder to compensate for venue-related costs.

This reform marks a major shift in the legal and operational landscape for both insurers and insureds. For policyholders, this bill restores local jurisdictional control, reduces litigation expenses, and ensures more equitable access to dispute resolution. For insurers, it provides clearer, uniform requirements when structuring arbitration clauses in surplus lines contracts.

The Chad T. Wilson Law Firm has maintained an active involvement in supporting this legislation, recognizing the need for fairness and transparency in how surplus lines disputes are handled.

This reform is particularly timely as surplus lines insurance becomes an increasingly common recourse for Texas residents seeking property and casualty coverage in hard-to-insure areas. Ensuring that these policies are governed by Texas laws and arbitrated within the state protects consumer rights and ensures accountability in the surplus lines market.

About Chad T. Wilson Law Firm

The Chad T. Wilson Law Firm is dedicated to representing policyholders in insurance disputes. We specialize in fighting on behalf of policyholders when insurance companies fail to honor their contracts.