Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Haggerty                                      H.B. No. 652

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     Amending Article 3.70-13, relating to certain policies continuous.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1:  Article 3.70-13, Insurance Code, is amended to

 1-5     read as follows:

 1-6     Article 3.70-13

 1-7           (a)  A guaranteed renewable policy or a noncancellable policy

 1-8     shall be deemed to be a continuous policy, subject only to the

 1-9     terms and conditions thereof, including payment of policy premiums,

1-10     and such policies shall be considered to be continued in force by

1-11     the policy terms and conditions, and such policies shall not be

1-12     deemed or treated as renewed policies by the payment of such

1-13     contracted policy premiums.  This article does not apply to a

1-14     health benefit plan adopted in accordance with Chapter 26 of this

1-15     code, as added by H.B. No. 2055, Acts of the 73rd Legislature,

1-16     Regular Session, 1993.

1-17           (b)  Guaranteed renewable policies may be issued to persons

1-18     sixty-one years of age or older for any term of years but not less

1-19     than two.

1-20           SECTION 2:  In the event that a court of competent

1-21     jurisdiction shall declare any provision of this Act

1-22     unconstitutional, the unconstitutional provision shall be severed

1-23     from the remaining provisions, which shall continue in full force

1-24     and effect.

 2-1           SECTION 3:  Any rule adopted by the Commissioner which is not

 2-2     in conformity to the standards set forth in Section 1 of this Act

 2-3     shall be null and void and of no force or effect.

 2-4           SECTION 4:  If this law is in conflict with any other law,

 2-5     rule, regulation, or  provision of the code, this law shall

 2-6     control.

 2-7           SECTION 5:  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended,

2-12     and that this Act take effect and be in force from and after its

2-13     passage, and it is so enacted.