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.