By Averitt                                                 H B. 768
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the extension of group life insurance to spouses and
 1-3     children.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 3.51-4A, Insurance Code, is amended to
 1-6     read as follows:
 1-7           Art. 3.51-4A.  EXTENSION OF GROUP [TERM] LIFE INSURANCE TO
 1-8     SPOUSES AND CHILDREN.
 1-9           Sec. 1.  Insurance under any group [term] life insurance
1-10     policy issued and delivered pursuant to the laws of the State of
1-11     Texas, except a policy issued and delivered to a creditor pursuant
1-12     to Section 1(4) of Article 3.50 of the Texas Insurance Code or
1-13     pursuant to any other law of the State of Texas providing for
1-14     credit life insurance, may be extended to cover the spouse, the
1-15     children under 21 years of age, natural or adopted, and the
1-16     children over 21 years of age, natural or adopted, who are enrolled
1-17     as full-time students at an educational institution or are
1-18     physically or mentally disabled and who are under the supervision
1-19     of the parents, of each person eligible to be insured thereunder,
1-20     provided that the amounts of insurance under the policy are based
1-21     on some plan precluding individual selection either by the insured
 2-1     or the policyholder, and provided further that the amount of such
 2-2     insurance on the life of the spouse or a child may be limited to a
 2-3     percentage of the amount of insurance for which the employee or
 2-4     member is insured [shall not exceed one-half of the amount of
 2-5     insurance on the life of the aforesaid insured under said policy].
 2-6           Sec. 2.  Premiums for the group [term] life insurance on such
 2-7     spouse and children may be paid by the group policyholder or by
 2-8     each insured under the said policy, or by the group policyholder
 2-9     and each such insured jointly.
2-10           Sec. 3.  Upon termination of the group [term] life insurance
2-11     with respect to the spouse of any such insured by reason of said
2-12     insured's termination of employment, eligibility for such
2-13     insurance, or death, or by termination of the group [term] life
2-14     insurance policy, such spouse shall have the same conversion rights
2-15     as to the group [term] life insurance on his or her life as is
2-16     provided for the insured.
2-17           Sec. 4.  Only one certificate need be issued for delivery to
2-18     an insured if a statement concerning any spouse's and any child's
2-19     coverage is included in such certificate.
2-20           SECTION 2.  No group life insurance policy entered into on or
2-21     before the effective date of this Act shall be deemed to have been
2-22     entered into in violation of Article 3.51-4A solely because the
2-23     amounts of insurance provided under such contract exceeded the
2-24     amounts previously permitted by Article 3.51-4A.
2-25           SECTION 3.  The importance of this legislation and the
 3-1     crowded condition of the calendars in both houses create an
 3-2     emergency and an imperative public necessity that the
 3-3     constitutional rule requiring bills to be read on three several
 3-4     days in each house be suspended, and this rule is hereby suspended.