By Hilbert H.B. No. 3152 75R2947 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain servicing agents for life insurance companies. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter A, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.08-1 to read as follows: 1-6 Art. 21.08-1. DESIGNATION OF SERVICING AGENT FOR LIFE 1-7 INSURANCE POLICY. (a) The owner of a policy of life insurance may 1-8 designate an agent for the life insurance company that issued the 1-9 policy to service the policy for the policy owner during the period 1-10 the policy is in force. The owner of the policy may change the 1-11 designated servicing agent under this subsection. 1-12 (b) The life insurance company that issued the policy shall 1-13 pay to the servicing agent designated under Subsection (a) of this 1-14 article the applicable renewal or service commissions for the 1-15 policy during the period the policy is in force. 1-16 (c) The commissioner of insurance shall adopt rules to 1-17 implement this article. The rules must include rules governing: 1-18 (1) notice to a policy owner of the policy owner's 1-19 right to designate a servicing agent under this article; and 1-20 (2) the manner in which a servicing agent is 1-21 designated and the manner in which the designation may be changed. 1-22 SECTION 2. This Act takes effect September 1, 1997, and 1-23 applies only to a life insurance policy that is delivered or issued 1-24 for delivery on or after January 1, 1998. A policy that is 2-1 delivered or issued for delivery before January 1, 1998, including 2-2 a policy that is delivered or issued for delivery before January 1, 2-3 1998, and renewed on or after January 1, 1998, is governed by the 2-4 law as it existed immediately before the effective date of this 2-5 Act, and that law is continued in effect for that purpose. 2-6 SECTION 3. The importance of this legislation and the 2-7 crowded condition of the calendars in both houses create an 2-8 emergency and an imperative public necessity that the 2-9 constitutional rule requiring bills to be read on three several 2-10 days in each house be suspended, and this rule is hereby suspended.