75R14033 MCK-D
By Delisi H.B. No. 2910
Substitute the following for H.B. No. 2910:
By Williams C.S.H.B. No. 2910
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the disposition of beneficial interests in life
1-3 insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 9.301, Family Code, as added by S.B. No.
1-6 334, Acts of the 75th Legislature, Regular Session, 1997, is
1-7 amended to read as follows:
1-8 Sec. 9.301. PRE-DECREE DESIGNATION OF EX-SPOUSE AS
1-9 BENEFICIARY OF LIFE INSURANCE. [(a)] If a decree of divorce or
1-10 annulment is rendered after an insured has designated the insured's
1-11 spouse as a beneficiary under a life insurance policy in force at
1-12 the time of rendition, a provision in the policy in favor of the
1-13 insured's former spouse is valid [not effective] unless the decree
1-14 states otherwise[:]
1-15 [(1) the decree designates the insured's former spouse
1-16 as the beneficiary;]
1-17 [(2) the insured redesignates the former spouse as the
1-18 beneficiary after rendition of the decree; or]
1-19 [(3) the former spouse is designated to receive the
1-20 proceeds in trust for, on behalf of, or for the benefit of a child
1-21 or a dependent of either former spouse.]
1-22 [(b) If a designation is not effective under Subsection (a),
1-23 the proceeds of the policy are payable to the named alternative
1-24 beneficiary or, if there is not a named alternative beneficiary, to
2-1 the estate of the insured.]
2-2 [(c) An insurer who pays the proceeds of a life insurance
2-3 policy issued by the insurer to the beneficiary under a designation
2-4 that is not effective under Subsection (a) is liable for payment of
2-5 the proceeds to the person or estate provided by Subsection (b)
2-6 only if:]
2-7 [(1) before payment of the proceeds to the designated
2-8 beneficiary, the insurer receives written notice at the home office
2-9 of the insurer from an interested person that the designation is
2-10 not effective under Subsection (a); and]
2-11 [(2) the insurer has not interpleaded the proceeds
2-12 into the registry of a court of competent jurisdiction in
2-13 accordance with the Texas Rules of Civil Procedure].
2-14 SECTION 2. (a) This Act takes effect September 1, 1997.
2-15 (b) The change in law made by this Act to Section 9.301,
2-16 Family Code, as added by S.B. No. 334, Acts of the 75th
2-17 Legislature, Regular Session, 1997, applies only to a decree of
2-18 divorce or annulment rendered on or after the effective date of
2-19 this Act.
2-20 (c) A decree of divorce or annulment rendered before the
2-21 effective date of this Act is governed by the law as it existed
2-22 immediately before the effective date of this Act, except as
2-23 provided by Subsection (d) of this section, and that law is
2-24 continued in effect for that purpose.
2-25 (d) Section 9.301, Family Code, or its predecessor statute,
2-26 as those statutes existed before amendment by this Act, does not
2-27 invalidate the designation of a former spouse as the beneficiary of
3-1 a life insurance policy if the insured's former spouse filed a
3-2 claim as the beneficiary of the life insurance policy before the
3-3 date the insurance company paid the proceeds of the life insurance
3-4 policy to another beneficiary or the estate of the insured.
3-5 SECTION 3. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.