By Maxey                                               H.B. No. 163

         75R750 DLF-D                           

                                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     under which any person covered by group life coverage provided

1-12     under this Act may:

1-13                 (1)  elect to receive an accelerated benefit under

1-14     Article 3.50-6, Insurance Code, subject to the provisions of that

1-15     article; or

1-16                 (2)  make, in conjunction with receipt of a viatical

1-17     settlement, an irrevocable designation of a beneficiary for all or

1-18     a part of the group life coverage benefits.

1-19           (b)  In this section, "viatical settlement" has the meaning

1-20     assigned by Article 3.50-6A, Insurance Code.

1-21           SECTION 2.  This Act takes effect September 1, 1997, and

1-22     applies only to coverage under a group life insurance policy that

1-23     is delivered, issued for delivery, or renewed on or after January

1-24     1, 1998.  Coverage under a group life insurance policy that is

 2-1     delivered, issued for delivery, or renewed before January 1, 1998,

 2-2     is governed by the law as it existed immediately before the

 2-3     effective date of this Act, and that law is continued in effect for

 2-4     this purpose.

 2-5           SECTION 3.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended.