By: Turner S.B. No. 1239
73R4179 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the limit on coverage for certain annuity contracts
1-3 under the Life, Accident, Health, and Hospital Service Insurance
1-4 Guaranty Association Act.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 5(3), Article 21.28-D, Insurance Code, is
1-7 amended to read as follows:
1-8 (3) "Contractual obligation" means an obligation under
1-9 a policy or contract or certificate under a group policy or
1-10 contract, or portion thereof for which coverage is provided under
1-11 Section 3 of this Act. A contractual obligation does not include:
1-12 (A) death benefits in an amount in excess of
1-13 $300,000 or a net cash surrender or net cash withdrawal value in an
1-14 amount in excess of $100,000 in the aggregate under one or more
1-15 covered policies on any one life;
1-16 (B) an amount in excess of $300,000 <$100,000>
1-17 in the aggregate under one or more annuity contracts within the
1-18 scope of this Act issued to the same holder of individual annuity
1-19 policies or to the same annuitant or participant under group
1-20 annuity policies or an amount in excess of $5,000,000 in
1-21 unallocated annuity contract benefits with respect to any one
1-22 contract holder irrespective of the number of such contracts;
1-23 (C) an amount in excess of $200,000 in the
1-24 aggregate under one or more accident and health, accident, or
2-1 health insurance policies on any one life; or
2-2 (D) punitive, exemplary, extracontractual, or
2-3 bad faith damages, whether agreed to or assumed by an insurer or
2-4 insured or imposed by a court of competent jurisdiction.
2-5 SECTION 2. This Act takes effect September 1, 1993, and
2-6 applies only to the contractual obligations of an insurer
2-7 designated an impaired insurer by the commissioner of insurance on
2-8 or after that date. The contractual obligations of an insurer
2-9 designated an impaired insurer before the effective date of this
2-10 Act are governed by the law as it existed immediately before the
2-11 effective date of this Act, and that law is continued in effect for
2-12 that purpose.
2-13 SECTION 3. The importance of this legislation and the
2-14 crowded condition of the calendars in both houses create an
2-15 emergency and an imperative public necessity that the
2-16 constitutional rule requiring bills to be read on three several
2-17 days in each house be suspended, and this rule is hereby suspended.