1-1 By: Harris S.B. No. 311
1-2 (In the Senate - Filed January 27, 1997; January 29, 1997,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 February 19, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0;
1-6 February 19, 1997, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 311 By: Harris
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the disposition of beneficial interests in insurance.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (b), Section 3.632, Family Code, is
1-13 amended to read as follows:
1-14 (b) If a decree of divorce or annulment is rendered after an
1-15 insured has designated the insured's spouse as a beneficiary under
1-16 a group insurance policy providing life insurance [policy] in force
1-17 at the time of rendition, a provision in the policy in favor of the
1-18 insured's former spouse is not effective until the day after the
1-19 first anniversary of the date on which the decree is rendered
1-20 unless:
1-21 (1) the decree designates the insured's former spouse
1-22 as the beneficiary;
1-23 (2) the insured redesignates the former spouse as the
1-24 beneficiary after rendition of the decree; or
1-25 (3) the former spouse is designated to receive the
1-26 proceeds in trust for, on behalf of, or for the benefit of a child
1-27 or a dependent of either former spouse.
1-28 SECTION 2. (a) This Act takes effect immediately.
1-29 (b) The change in law made by this Act to Subsection (b),
1-30 Section 3.632, Family Code, applies only to an insurance policy
1-31 that is delivered, issued for delivery, or renewed on or after the
1-32 effective date of this Act.
1-33 (c) A policy that is not delivered, issued for delivery, or
1-34 renewed on or after the effective date of this Act, is governed by
1-35 the law as it existed immediately before the effective date of this
1-36 Act, except as provided by Subsection (d) of this section, and that
1-37 law is continued in effect for that purpose.
1-38 (d) Subsection (b), Section 3.632, Family Code, as it
1-39 existed before amendment by this Act, does not invalidate the
1-40 designation of a former spouse as the beneficiary of a life
1-41 insurance policy if:
1-42 (1) the insured's former spouse had physical
1-43 possession of the life insurance policy at all times after the
1-44 decree of divorce or annulment was rendered;
1-45 (2) the insured's former spouse paid each insurance
1-46 premium on the life insurance policy after the rendition of the
1-47 decree;
1-48 (3) the insured's former spouse was named executor of
1-49 the insured's estate; and
1-50 (4) the insured's former spouse filed a claim as the
1-51 beneficiary of the life insurance policy before the date the
1-52 insurance company paid the proceeds of the life insurance policy to
1-53 another beneficiary or the estate of the insured.
1-54 SECTION 3. The importance of this legislation and the
1-55 crowded condition of the calendars in both houses create an
1-56 emergency and an imperative public necessity that the
1-57 constitutional rule requiring bills to be read on three several
1-58 days in each house be suspended, and this rule is hereby suspended,
1-59 and that this Act take effect and be in force from and after its
1-60 passage, and it is so enacted.
1-61 * * * * *