73R2853 PB-F By Chisum, et al. H.B. No. 431 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of viatical settlements by the State 1-3 Board of Insurance. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 3, Insurance Code, is 1-6 amended by adding Article 3.50-6A to read as follows: 1-7 Art. 3.50-6A. VIATICAL SETTLEMENTS 1-8 Sec. 1. DEFINITION. In this article, "viatical settlement" 1-9 means a contract, entered into by an insured with a terminal 1-10 illness who owns a life insurance policy insuring the life of the 1-11 insured, under which the insured assigns or transfers the insurance 1-12 policy to another person or entity for valuable consideration. 1-13 Sec. 2. REGULATION BY BOARD. The board has exclusive 1-14 jurisdiction in this state to regulate viatical settlements, 1-15 regardless of form, including regulation of a transaction that 1-16 would otherwise be governed by The Securities Act (Article 581-1 et 1-17 seq., Vernon's Texas Civil Statutes). 1-18 SECTION 2. The importance of this legislation and the 1-19 crowded condition of the calendars in both houses create an 1-20 emergency and an imperative public necessity that the 1-21 constitutional rule requiring bills to be read on three several 1-22 days in each house be suspended, and this rule is hereby suspended, 1-23 and that this Act take effect and be in force from and after its 1-24 passage, and it is so enacted.