SRC-AAA S.B. 285 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 285
By: Shapiro
Jurisprudence
2-4-97
As Filed


DIGEST 

Currently, in a divorce or annulment, Section 3.632(b) of  the Family Code
automatically terminates a spouse's designation as beneficiary of a life
insurance policy. This bill allows the life insurance policy beneficiary
to remain the same unless the policy holder chooses to designate another
person. 

PURPOSE

As proposed, S.B. 285 provides that an insurance policy's benefit
provision in favor of the insured's former spouse is valid unless the
divorce decree states otherwise. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3.632, Family Code, to provide that if a divorce
decree (decree) or annulment is rendered after an insured has designated
the insured's spouse as a beneficiary under a life insurance policy in
force at the time of rendition, a provision in the policy in favor of the
insured's former spouse is valid unless the decree states otherwise.
Deletes provisions whereby an insured's policy in favor of insured's
former spouse is not effective.  Deletes provisions whereby an insurer
would be liable for insurance benefits under Subsection (b). Makes
conforming changes. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.