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