By: Harris S.B. No. 311
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the disposition of beneficial interests in insurance.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (b), Section 3.632, Family Code, is
1-4 amended to read as follows:
1-5 (b) If a decree of divorce or annulment is rendered after an
1-6 insured has designated the insured's spouse as a beneficiary under
1-7 a group insurance policy providing life insurance [policy] in force
1-8 at the time of rendition, a provision in the policy in favor of the
1-9 insured's former spouse is not effective until the day after the
1-10 first anniversary of the date on which the decree is rendered
1-11 unless:
1-12 (1) the decree designates the insured's former spouse
1-13 as the beneficiary;
1-14 (2) the insured redesignates the former spouse as the
1-15 beneficiary after rendition of the decree; or
1-16 (3) the former spouse is designated to receive the
1-17 proceeds in trust for, on behalf of, or for the benefit of a child
1-18 or a dependent of either former spouse.
1-19 SECTION 2. (a) This Act takes effect immediately.
1-20 (b) The change in law made by this Act to Subsection (b),
1-21 Section 3.632, Family Code, applies only to an insurance policy
1-22 that is delivered, issued for delivery, or renewed on or after the
1-23 effective date of this Act.
2-1 (c) A policy that is not delivered, issued for delivery, or
2-2 renewed on or after the effective date of this Act, is governed by
2-3 the law as it existed immediately before the effective date of this
2-4 Act, except as provided by Subsection (d) of this section, and that
2-5 law is continued in effect for that purpose.
2-6 (d) Subsection (b), Section 3.632, Family Code, as it
2-7 existed before amendment by this Act, does not invalidate the
2-8 designation of a former spouse as the beneficiary of a life
2-9 insurance policy if:
2-10 (1) the insured's former spouse had physical
2-11 possession of the life insurance policy at all times after the
2-12 decree of divorce or annulment was rendered;
2-13 (2) the insured's former spouse paid each insurance
2-14 premium on the life insurance policy after the rendition of the
2-15 decree;
2-16 (3) the insured's former spouse was named executor of
2-17 the insured's estate; and
2-18 (4) the insured's former spouse filed a claim as the
2-19 beneficiary of the life insurance policy before the date the
2-20 insurance company paid the proceeds of the life insurance policy to
2-21 another beneficiary or the estate of the insured.
2-22 SECTION 3. The importance of this legislation and the
2-23 crowded condition of the calendars in both houses create an
2-24 emergency and an imperative public necessity that the
2-25 constitutional rule requiring bills to be read on three several
3-1 days in each house be suspended, and this rule is hereby suspended,
3-2 and that this Act take effect and be in force from and after its
3-3 passage, and it is so enacted.