1-1     By:  Maxey (Senate Sponsor - Gallegos)                 H.B. No. 163

 1-2           (In the Senate - Received from the House April 4, 1997;

 1-3     April 8, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 16, 1997, reported favorably by the following vote:

 1-5     Yeas 13, Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to accelerated payment or assignment of life insurance

 1-9     benefits under the Texas Employees Uniform Group Insurance Benefits

1-10     Act.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  The Texas Employees Uniform Group Insurance

1-13     Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is

1-14     amended by adding Section 11A to read as follows:

1-15           Sec. 11A.  PAYMENT OF ACCELERATED BENEFITS; IRREVOCABLE

1-16     DESIGNATION OF BENEFICIARY.  (a) The trustee shall adopt rules

1-17     requiring a group life insurance program provided to employees,

1-18     including annuitants or dependents, to include a provision allowing

1-19     the employee, annuitant, or dependent to:

1-20                 (1)  elect to receive an accelerated benefit under

1-21     Article 3.50-6, Insurance Code, subject to the provisions of that

1-22     article; or

1-23                 (2)  make, in conjunction with receipt of a viatical

1-24     settlement, an irrevocable designation of a beneficiary for all or

1-25     a part of the group life coverage benefits.

1-26           (b)  In this section, "viatical settlement" has the meaning

1-27     assigned by Article 3.50-6A, Insurance Code.

1-28           SECTION 2.  (a) This Act takes effect September 1, 1997.

1-29           (b)  Subject to Subsection (c) of this section, this Act

1-30     applies only to coverage under a group life insurance policy that

1-31     is delivered, issued for delivery, or renewed on or after September

1-32     1, 1997.  A group life insurance policy that is delivered, issued

1-33     for delivery, or renewed before September 1, 1997, is governed by

1-34     the law as it existed immediately before the effective date of this

1-35     Act, and that law is continued in effect for that purpose.

1-36           (c)  An employee or retired employee is not entitled to elect

1-37     to receive an accelerated benefit or to designate a beneficiary in

1-38     accordance with Section 11A, Texas Employees Uniform Group

1-39     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

1-40     Code), as added by this Act, before January 1, 1998.

1-41           SECTION 3.  The importance of this legislation and the

1-42     crowded condition of the calendars in both houses create an

1-43     emergency and an imperative public necessity that the

1-44     constitutional rule requiring bills to be read on three several

1-45     days in each house be suspended, and this rule is hereby suspended.

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