Insurance clauses that force arbitration before you can sue would no longer hold up in Texas

What it does

HB 1117 would void a binding arbitration clause in a property and casualty insurance policy if it makes you take the dispute to arbitration before you can use the courts, waives or limits your rights, damages, attorney's fees, or other remedies available under Texas law, shortens a time limit that Texas law sets, requires arbitration to happen outside Texas for a Texas resident, or charges an arbitration fee much higher than the filing fee in a district court. An agreement to arbitrate an insurance dispute would be enforceable only if it is made after the dispute arises, is signed separately by all parties, and gives everyone equal rights, procedures, and remedies. The new rules would apply to insurance contracts delivered, issued for delivery, or renewed on or after January 1, 2028, and the act takes effect September 1, 2027.