By McCall H.B. No. 2288
76R8532 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the consent to ownership or beneficiary of certain life
1-3 insurance policies
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 3.49-1, Insurance Code, is amended to
1-6 read as follows:
1-7 Sec. 1. DESIGNATION OF BENEFICIARIES OR OWNERS IN
1-8 APPLICATION. Any person of legal age may apply for insurance on
1-9 his life in any legal reserve or mutual assessment life insurance
1-10 company and in such application designate in writing any person,
1-11 persons, partnership, association, corporation or other legal
1-12 entity, or any combination thereof, as the beneficiary or
1-13 beneficiaries, or the absolute or partial owner or owners, or both
1-14 beneficiary and owner, of any policy or policies issued in
1-15 connection with such application; and with respect to any such
1-16 policy or policies any such beneficiary or owner so designated
1-17 shall at all times thereafter have an insurable interest in the
1-18 life of such person, except as provided in Section 4 [3] hereof.
1-19 Sec. 2. DESIGNATION OF BENEFICIARIES OR OWNERS IN EXISTING
1-20 OR FUTURE POLICIES. Any person of legal age whose life is insured
1-21 under any existing or future policy of insurance by any legal
1-22 reserve or mutual assessment life insurance company may, in the
1-23 manner and to the extent permitted by the policy, designate in
1-24 writing as the beneficiary or beneficiaries thereof any person,
2-1 persons, partnership, association, corporation or other legal
2-2 entity, or any combination thereof, and in addition, in any manner
2-3 and to any extent not prohibited by the terms of the policy, may
2-4 transfer or assign in writing any such policy or any interest,
2-5 benefit, right or title therein to any person, persons,
2-6 partnership, association, corporation or other legal entity, or any
2-7 combination thereof, and with respect to any such policy any such
2-8 beneficiary, transferee or assignee shall at all times thereafter
2-9 have an insurable interest in the life of such person, except as
2-10 provided in Section 3 hereof.
2-11 Sec. 3. CONSENT TO OWNERSHIP OR BENEFICIARY OF POLICIES.
2-12 Any person of legal age may consent in writing to the purchase of
2-13 or the application for an individual or group insurance policy or
2-14 policies issued by any legal reserve or mutual assessment life
2-15 insurance company by a third party or parties and in such written
2-16 document, consent to or designate any person, persons, partnership,
2-17 association, corporation or other legal entity, or any combination
2-18 thereof, as the absolute or partial owner or owners, beneficiary,
2-19 or any combination thereof, of any policy or policies issued in
2-20 connection with such consent or designation; and with respect to
2-21 any such policy or policies any such owner or beneficiary shall at
2-22 all times thereafter have an insurable interest in the life of such
2-23 person, except as provided in Section 4 hereof.
2-24 Sec. 4 [3]. EXCEPTION OF PERSONS, ETC., ENGAGED IN THE
2-25 BUSINESS OF BURYING DEAD. Notwithstanding the provisions thereof,
2-26 no person, persons, partnership, association, corporation or other
2-27 legal entity, or any combination thereof, directly or indirectly
3-1 engaged in the business of burying the dead shall have or obtain,
3-2 directly or indirectly, any insurable interest in the life of any
3-3 person by virtue of Sections 1, [or] 2, or 3 hereof, or shall have
3-4 an insurable interest in the life of any person unless such
3-5 insurable interest be established under and by virtue of other
3-6 applicable statutory or common law.
3-7 Sec. 5 [4]. CUMULATIVE EFFECT; LIBERAL CONSTRUCTION. The
3-8 provisions of this Act are cumulative of existing law in Texas,
3-9 statutory and otherwise, on the question of insurable interest.
3-10 This Act is enacted in specific recognition of the provisions of
3-11 Article 21.23 of the Texas Insurance Code, 1951, that the interest
3-12 of any beneficiary in a life insurance policy is forfeited if the
3-13 beneficiary is the principal or an accomplice in bringing about the
3-14 death of the insured.
3-15 This Act shall be liberally construed to effectuate its
3-16 purposes, and its provisions are not to be limited or restricted by
3-17 previous declarations or holdings of the Courts of Texas defining
3-18 the term insurable interest.
3-19 SECTION 2. This legislation is effective for all insurance
3-20 contracts delivered, issued, or used on or after January 1, 2000.
3-21 SECTION 3. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended.