By Maxey H.B. No. 792
76R3727 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of viatical settlement agreements.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1(2), Article 3.50-6A, Insurance Code, is
1-5 amended to read as follows:
1-6 (2) "Viatical settlement" means an agreement that is
1-7 solicited, negotiated, offered, entered into, delivered, or issued
1-8 for delivery in this state under which a person pays compensation
1-9 or anything of value that is less than the expected death benefit
1-10 of a policy insuring the life of an individual [who has a
1-11 catastrophic or life-threatening illness or condition] in return
1-12 for the policy owner's or certificate holder's assignment,
1-13 transfer, sale, devise, or bequest of the death benefit under or
1-14 ownership of the policy.
1-15 SECTION 2. Sections 3 and 4, Article 3.50-6A, Insurance
1-16 Code, are amended to read as follows:
1-17 Sec. 3. APPLICATION OF [ENFORCEMENT. For a violation of a
1-18 rule adopted under this article, the commissioner may take any
1-19 action against a person engaged in the business of viatical
1-20 settlements that may be taken under:]
1-21 [(1) Articles 1.10 and 1.10E of this code; or]
1-22 [(2) Article 1.10D of this code against a person
1-23 engaged in a fraudulent insurance act.]
1-24 [Sec. 4. RELATION TO] OTHER INSURANCE LAWS. The
2-1 commissioner by rule may specify the other provisions of this code
2-2 or other insurance laws of this state that apply to a person
2-3 engaged in the business of viatical settlements.
2-4 Sec. 4. ENFORCEMENT. The commissioner may take against a
2-5 person engaged in the business of viatical settlements who violates
2-6 this article, an applicable provision of this code or another
2-7 insurance law of this state, or a rule adopted under this article
2-8 or under such a provision any action that the commissioner may take
2-9 against a person engaged in the business of insurance who violates
2-10 a statute or rule. [Except as otherwise provided by this article
2-11 or by rules adopted under this article, this code and any other
2-12 insurance law of this state do not apply to the business of
2-13 viatical settlements.]
2-14 SECTION 3. The change in law made by this Act applies only
2-15 to conduct that occurs on or after the effective date of this Act.
2-16 Conduct that occurs before the effective date of this Act is
2-17 governed by the law in effect when the conduct occurred, and that
2-18 law is continued in effect for that purpose.
2-19 SECTION 4. This Act takes effect September 1, 1999.
2-20 SECTION 5. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.