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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of available alternatives to the lapse or |
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surrender of a life insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1101, Insurance Code, is amended by |
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adding Subchapter G to read as follows: |
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SUBCHAPTER G. NOTICE REGARDING ALTERNATIVES TO LAPSE OR SURRENDER |
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Sec. 1101.301. NOTICE OF ALTERNATIVES TO LAPSE OR SURRENDER |
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OF POLICY. (a) An insurer shall provide to a policy owner who is at |
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least 60 years of age and who has held the policy for at least two |
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years a written notice of the existence of potential available |
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alternatives to the lapse or surrender of the owner's life |
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insurance policy: |
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(1) before the termination or the complete or partial |
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surrender of the policy; and |
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(2) on the request by the policy owner of: |
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(A) a loan against or withdrawal of the cash |
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value of the policy; or |
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(B) any change to the terms of the policy, |
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including a change regarding an accelerated death benefit, a |
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nursing home benefit, a catastrophic illness benefit, or another |
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living benefit. |
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(b) The notice provided under Subsection (a) must state that |
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the policy owner may consult with the insurer's agent, the |
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department, or a financial advisor regarding the potential |
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available alternatives to the lapse or surrender of the owner's |
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life insurance policy. |
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SECTION 2. This Act takes effect September 1, 2021. |