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A BILL TO BE ENTITLED
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AN ACT
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relating to the insurable interest of certain persons providing |
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care to individuals with disabilities in the life of those |
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individuals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1103.053, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsections (c) and (d) to read |
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as follows: |
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(a) Except as provided by Subsection (b) or (c), a |
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beneficiary or owner of a life insurance policy who is designated in |
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accordance with this subchapter or an entity to which a life |
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insurance policy or an interest, benefit, right, or title in a life |
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insurance policy is transferred or assigned in accordance with this |
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subchapter has, at all times after the designation, an insurable |
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interest in the life of the individual who is insured under the |
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policy. |
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(c) Notwithstanding Section 1103.051, this subsection |
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applies to a life insurance policy issued under Chapter 1101. A |
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person providing care to an individual with a disability, including |
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an intellectual disability, at a state supported living center, as |
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defined by Section 531.002, Health and Safety Code, an assisted |
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living facility licensed under Chapter 247, Health and Safety Code, |
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an intermediate care facility licensed under Chapter 252, Health |
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and Safety Code, or a group home, as defined by Section 591.003, |
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Health and Safety Code, does not directly or indirectly have an |
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insurable interest in the life of an individual unless the person is |
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a relative of the individual. |
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(d) In this section, "relative" means an individual who is |
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related to the insured within the third degree by consanguinity or |
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affinity as determined under Chapter 573, Government Code. |
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SECTION 2. Section 1103.053(c), Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2024. |
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SECTION 3. This Act takes effect September 1, 2023. |