By Harris S.B. No. 311 75R3987 MCK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the disposition of beneficial interests in insurance. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 3.632(b), Family Code, is amended to read 1-5 as follows: 1-6 (b) If a decree of divorce or annulment is rendered after an 1-7 insured has designated the insured's spouse as a beneficiary under 1-8 a life insurance policy in force at the time of rendition and if 1-9 the premiums are paid by an employer, a provision in the policy in 1-10 favor of the insured's former spouse is not effective until the day 1-11 after the first anniversary of the date on which the decree is 1-12 rendered unless: 1-13 (1) the decree designates the insured's former spouse 1-14 as the beneficiary; 1-15 (2) the insured redesignates the former spouse as the 1-16 beneficiary after rendition of the decree; or 1-17 (3) the former spouse is designated to receive the 1-18 proceeds in trust for, on behalf of, or for the benefit of a child 1-19 or a dependent of either former spouse. 1-20 SECTION 2. (a) This Act takes effect immediately. 1-21 (b) The change in law made by this Act to Section 3.632(b), 1-22 Family Code, applies only to an insurance policy that is delivered, 1-23 issued for delivery, or renewed on or after the effective date of 1-24 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) Section 3.632(b), Family Code, as it existed before 2-7 amendment by this Act, does not invalidate the designation of a 2-8 former spouse as the beneficiary of a life insurance policy if: 2-9 (1) the insured's former spouse had physical 2-10 possession of the life insurance policy at all times after the 2-11 decree of divorce or annulment was rendered; 2-12 (2) the insured's former spouse paid each insurance 2-13 premium on the life insurance policy after the rendition of the 2-14 decree; 2-15 (3) the insured's former spouse was named executor of 2-16 the insured's estate; and 2-17 (4) the insured's former spouse filed a claim as the 2-18 beneficiary of the life insurance policy before the date the 2-19 insurance company paid the proceeds of the life insurance policy to 2-20 another beneficiary or the estate of the insured. 2-21 SECTION 3. The importance of this legislation and the 2-22 crowded condition of the calendars in both houses create an 2-23 emergency and an imperative public necessity that the 2-24 constitutional rule requiring bills to be read on three several 2-25 days in each house be suspended, and this rule is hereby suspended, 2-26 and that this Act take effect and be in force from and after its 2-27 passage, and it is so enacted.