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.