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.