75R11348 SAW-F
By Maxey, et al. H.B. No. 1865
Substitute the following for H.B. No. 1865:
By Burnam C.S.H.B. No. 1865
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to payment of accelerated life insurance benefits.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Article 3.50-6, Insurance Code, is amended to
1-5 read as follows:
1-6 Art. 3.50-6. PAYMENT OF ACCELERATED LIFE INSURANCE BENEFITS
1-7 [DEATH BENEFIT IN EVENT OF TERMINAL ILLNESS OR INJURY]. (a) In
1-8 this article:
1-9 (1) "Accelerated benefit" means a benefit paid to an
1-10 insured in lieu of a portion of a death benefit.
1-11 (2) "Death benefit" means a benefit payable to a
1-12 beneficiary on the death of an insured.
1-13 (3) "Long-term care illness" means an illness or
1-14 physical condition that results in the inability to perform the
1-15 activities of daily life or the substantial and material duties of
1-16 any occupation.
1-17 (4) "Specified disease" means an illness or physical
1-18 condition that is likely to cause permanent disability or premature
1-19 death, including the following:
1-20 (A) acquired immunodeficiency syndrome (AIDS);
1-21 (B) a malignant tumor;
1-22 (C) a condition that requires an organ
1-23 transplant; and
1-24 (D) a coronary artery disease that results in
2-1 acute infarction or requires surgery.
2-2 (5) "Terminal illness" means an illness or physical
2-3 condition, including a physical injury, that can reasonably be
2-4 expected to result in death in two years or less.
2-5 (b) An insurance company may pay an accelerated benefit
2-6 under an individual or [a] group term life insurance policy or
2-7 certificate if:
2-8 (1) the company has received a written medical
2-9 opinion, satisfactory to the company, that the insured has a [is
2-10 not expected to continue living for more than 12 months because of]
2-11 terminal illness, a long-term care illness, or a specified disease
2-12 [or injury]; and
2-13 (2) [the amount of the accelerated benefit does not
2-14 exceed the greater of $25,000 or 50 percent of the amount of the
2-15 death benefit payable under the policy or certificate; and]
2-16 [(3)] the amount of the accelerated benefit is
2-17 deducted from the amount of the death benefit payable under the
2-18 policy or certificate and from any amount the insured would
2-19 otherwise be entitled to convert to an individual contract.
2-20 (c) The commissioner may adopt rules to implement this
2-21 article.
2-22 SECTION 2. This Act takes effect on September 1, 1997, and
2-23 applies only to a policy or contract that is delivered, issued for
2-24 delivery, or renewed on or after that date. A policy or contract
2-25 that is delivered, issued for delivery, or renewed before the
2-26 effective date of this Act is governed by the law as it existed
2-27 immediately before that date, and that law is continued in effect
3-1 for that purpose.
3-2 SECTION 3. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended.