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.