1-1 By: Madla S.B. No. 405
1-2 (In the Senate - Filed February 4, 1999; February 8, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 1, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; March 1, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 405 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the extension of certain group life insurance coverage
1-11 to spouses and children.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Article 3.51-4A, Insurance Code, is amended to
1-14 read as follows:
1-15 Art. 3.51-4A. EXTENSION OF GROUP [TERM] LIFE INSURANCE TO
1-16 SPOUSES AND CHILDREN
1-17 Sec. 1. Insurance under any group [term] life insurance
1-18 policy issued and delivered pursuant to the laws of the State of
1-19 Texas, except a policy issued and delivered to a creditor pursuant
1-20 to Section 1(4) of Article 3.50 of the Texas Insurance Code or
1-21 pursuant to any other law of the State of Texas providing for
1-22 credit life insurance, may be extended to cover the spouse, the
1-23 children under 21 years of age, natural or adopted, and the
1-24 children over 21 years of age, natural or adopted, who are enrolled
1-25 as full-time students at an educational institution or are
1-26 physically or mentally disabled and who are under the supervision
1-27 of the parents, of each person eligible to be insured thereunder,
1-28 provided that:
1-29 (1) the amounts of insurance under the policy are
1-30 based on some plan precluding individual selection either by the
1-31 insured or the policyholder;[,] and
1-32 (2) [provided further that] the amount of such
1-33 insurance on the life of the spouse or a child may be limited to a
1-34 percentage [shall not exceed one-half] of the amount of the
1-35 insurance on the life of the aforesaid person eligible to be
1-36 insured under said policy.
1-37 Sec. 2. Premiums for the group [term] life insurance on such
1-38 spouse and children may be paid by the group policyholder or by
1-39 each insured under the said policy, or by the group policyholder
1-40 and each such insured jointly.
1-41 Sec. 3. Upon termination of the group [term] life insurance
1-42 with respect to the spouse of any such insured by reason of said
1-43 insured's termination of employment, eligibility for such
1-44 insurance, or death, or by termination of the group [term] life
1-45 insurance policy, such spouse shall have the same conversion rights
1-46 as to the group [term] life insurance on his or her life as is
1-47 provided for the insured.
1-48 Sec. 4. Only one certificate need be issued for delivery to
1-49 an insured if a statement concerning any spouse's and any child's
1-50 coverage is included in such certificate.
1-51 SECTION 2. Article 3.51-4A, Insurance Code, as amended by
1-52 this Act, applies only to an insurance policy delivered, issued for
1-53 delivery, or renewed on or after January 1, 2000. A policy
1-54 delivered, issued for delivery, or renewed before January 1, 2000,
1-55 is governed by the law as it existed immediately before the
1-56 effective date of this Act, and that law is continued in effect for
1-57 that purpose.
1-58 SECTION 3. This Act takes effect September 1, 1999.
1-59 SECTION 4. The importance of this legislation and the
1-60 crowded condition of the calendars in both houses create an
1-61 emergency and an imperative public necessity that the
1-62 constitutional rule requiring bills to be read on three several
1-63 days in each house be suspended, and this rule is hereby suspended.
1-64 * * * * *