By Maxey                                               H.B. No. 163

         75R5773 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to accelerated payment or assignment of life insurance

 1-3     benefits under the Texas Employees Uniform Group Insurance Benefits

 1-4     Act.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  The Texas Employees Uniform Group Insurance

 1-7     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is

 1-8     amended by adding Section 11A to read as follows:

 1-9           Sec. 11A.  PAYMENT OF ACCELERATED BENEFITS; IRREVOCABLE

1-10     DESIGNATION OF BENEFICIARY.  (a) The trustee shall adopt rules

1-11     requiring a group life insurance program provided to employees,

1-12     including annuitants or dependents, to include a provision allowing

1-13     the employee, annuitant, or dependent to:

1-14                 (1)  elect to receive an accelerated benefit under

1-15     Article 3.50-6, Insurance Code, subject to the provisions of that

1-16     article; or

1-17                 (2)  make, in conjunction with receipt of a viatical

1-18     settlement, an irrevocable designation of a beneficiary for all or

1-19     a part of the group life coverage benefits.

1-20           (b)  In this section, "viatical settlement" has the meaning

1-21     assigned by Article 3.50-6A, Insurance Code.

1-22           SECTION 2.  (a) This Act takes effect September 1, 1997.

1-23           (b)  Subject to Subsection (c) of this section, this Act

1-24     applies only to coverage under a group life insurance policy that

 2-1     is delivered, issued for delivery, or renewed on or after September

 2-2     1, 1997.  A group life insurance policy that is delivered, issued

 2-3     for delivery, or renewed before September 1, 1997, is governed by

 2-4     the law as it existed immediately before the effective date of this

 2-5     Act, and that law is continued in effect for that purpose.

 2-6           (c)  An employee or retired employee is not entitled to elect

 2-7     to receive an accelerated benefit or to designate a beneficiary in

 2-8     accordance with Section 11A, Texas Employees Uniform Group

 2-9     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

2-10     Code), as added by this Act, before January 1, 1998.

2-11           SECTION 3.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended.