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. 1-46 * * * * *