By Madla                                               S.B. No. 405
         76R4526 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the extension of certain group life insurance coverage
 1-3     to spouses and 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:
1-21                 (1)  the amounts of insurance under the policy are
1-22     based on some plan precluding individual selection either by the
1-23     insured or the policyholder;[,] and
1-24                 (2)  [provided further that] the amount of such
 2-1     insurance on the life of the spouse or a child may be limited to a
 2-2     percentage [shall not exceed one-half] of the amount of the
 2-3     insurance on the life of the primary [aforesaid] insured under said
 2-4     policy.
 2-5           Sec. 2.  Premiums for the group [term] life insurance on such
 2-6     spouse and children may be paid by the group policyholder or by
 2-7     each insured under the said policy, or by the group policyholder
 2-8     and each such insured jointly.
 2-9           Sec. 3.  Upon termination of the group [term] life insurance
2-10     with respect to the spouse of any such insured by reason of said
2-11     insured's termination of employment, eligibility for such
2-12     insurance, or death, or by termination of the group [term] life
2-13     insurance policy, such spouse shall have the same conversion rights
2-14     as to the group [term] life insurance on his or her life as is
2-15     provided for the insured.
2-16           Sec. 4.  Only one certificate need be issued for delivery to
2-17     an insured if a statement concerning any spouse's and any child's
2-18     coverage is included in such certificate.
2-19           SECTION 2.  Article 3.51-4A, Insurance Code, as amended by
2-20     this Act, applies only to an insurance policy delivered, issued for
2-21     delivery, or renewed on or after January 1, 2000.  A policy
2-22     delivered, issued for delivery, or renewed before January 1, 2000,
2-23     is governed by the law as it existed immediately before the
2-24     effective date of this Act, and that law is continued in effect for
2-25     that purpose.
2-26           SECTION 3.  This Act takes effect September 1, 1999.
2-27           SECTION 4.  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.