Amend HB 2811 as follows:
(1) In Chapter 802, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 802.051 and
substitute the following:
Sec. 802.051. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to each company regulated by the commissioner, including:
(1) a stock life, health, or accident insurance
company;
(2) a mutual life, health, or accident insurance
company;
(3) a stock fire or casualty insurance company;
(4) a mutual fire or casualty insurance company;
(5) a Mexican casualty company;
(6) a Lloyd's plan;
(7) a reciprocal or interinsurance exchange;
(8) a fraternal benefit society;
(9) a title insurance company;
(10) an attorney's title insurance company;
(11) a stipulated premium insurance company;
(12) a nonprofit legal service corporation;
(13) a health maintenance organization;
(14) a statewide mutual assessment company;
(15) a local mutual aid association;
(16) a local mutual burial association;
(17) an association exempt under Section 887.102;
(18) a nonprofit hospital, medical, or dental service
corporation, including a company subject to Chapter 842;
(19) a county mutual insurance company; and
(20) a farm mutual insurance company. (V.T.I.C.
Art. 1.11, Subsec. (b) (part).)
(2) In Section 821.051, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), between
"inland" and "insurance", insert "marine".
(3) In Section 823.053, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(1), strike
"distribution" and substitute "dividend or distribution".
(4) In Section 823.107, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "DISTRIBUTIONS" in the
section heading and substitute "DIVIDENDS OR DISTRIBUTIONS" and
strike "extraordinary distribution" in each place the phrase
appears in that section and substitute "extraordinary dividend or
distribution".
(5) In Section 823.107, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (c), strike
"proposed distribution" and substitute "proposed dividend or
distribution".
(6) In Section 823.107, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsections (d) and (e),
strike "the distribution" in each place the phrase appears in those
subsections and substitute "the dividend or distribution".
(7) In Section 828.051, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "Article 3.39 does" and
substitute "Articles 3.33 and 3.39 do".
(8) In Section 828.054, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "Article 3.39" and
substitute "Article 3.33 or 3.39".
(9) In Section 828.055, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "or request or an" and
substitute "request to purchase, or".
(10) In Section 828.056, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike
"Article 3.39" and substitute "Article 3.33 or 3.39".
(11) In Section 841.259, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the section heading, strike
"PROHIBITED".
(12) In Section 843.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), following Subdivision (28),
insert the following:
(29) "Uncovered liabilities" means obligations
resulting from unpaid uncovered expenses, the outstanding
indebtedness of loans that are not specifically subordinated to
uncovered medical and health care expenses or guaranteed by the
sponsoring organization, and all other monetary obligations that
are not similarly subordinated or guaranteed.
(13) In Section 843.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the recitation of the source
law for that section, between "(w) as amended Acts 75th Leg., R.S.,
Ch. 1023;" and "(x)", insert "(w) as amended Acts 75th Leg., R.S.,
Ch. 1026;".
(14) In Section 843.076, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(1), strike
"commissioner rule" and substitute "rules adopted by the
commissioner".
(15) In Section 843.080, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike the
second sentence and substitute: "If, before the 31st day after the
date a modification or amendment for which the commissioner's
approval is required is filed, the commissioner does not disapprove
the modification or amendment, it is considered approved."
(16) In Section 843.082, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the section heading, before
"APPROVAL", insert "REQUIREMENTS FOR".
(17) In Section 843.102, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (d) and
substitute the following:
(d) A health maintenance organization shall record formal
proceedings of quality assurance program activities and maintain
documentation in a confidential manner. The health maintenance
organization shall make the quality assurance program minutes
available to the commissioner.
(18) In Section 843.201, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike "a
handbook provided by the health maintenance organization" and
substitute "the health maintenance organization's handbook".
(19) In Section 843.208, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subdivision (2), strike
"commissioner rule" and substitute "rules adopted by the
commissioner".
(20) In Section 846.059, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike "pay
to the commissioner" and substitute "pay to the department".
(21) In Chapter 862, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 862.001, 862.002,
862.052, 862.151, 862.152, and 862.154, strike "inland insurance"
in each place the phrase appears in those sections and substitute
"inland marine insurance".
(22) In Section 862.001, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (b)(7)(A) and
substitute the following:
(A) separately the amount received, after
deducting reinsurance, as fire, marine, and inland marine
transportation premiums;
(23) In Section 882.559, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike
"commissioner" in each place the word appears in that subsection
and substitute "department".
(24) In Chapter 883, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 883.001 and
substitute the following:
Sec. 883.001. DEFINITIONS. In this chapter:
(1) "Domestic mutual insurance company" means a mutual
insurance company organized under this chapter.
(2) "Foreign mutual insurance company" means a mutual
insurance company organized under the laws of a jurisdiction other
than this state and authorized to engage in the business of
insurance on a mutual plan in any state, district, or territory.
(V.T.I.C. Arts. 15.14 (part), 15.15 (part); New.)
(25) In Section 883.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike "a
mutual insurance company and a foreign mutual insurance company"
and substitute "domestic and foreign mutual insurance companies".
(26) In Chapter 883, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 883.002, 883.003,
883.102, 883.151, 883.154, 883.155, 883.159, 883.201, 883.202, and
883.203, strike "mutual insurance company organized under this
chapter" in each place the phrase appears in those sections and
substitute "domestic mutual insurance company".
(27) In Section 883.204, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike "A
mutual insurance company and a foreign mutual insurance company"
and substitute "Domestic and foreign mutual insurance companies".
(28) In Chapter 883, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 883.206 and 883.207,
strike "A mutual insurance company and a foreign mutual insurance
company organized or operating under this chapter are" and
substitute "Each domestic or foreign mutual insurance company
organized or operating under this chapter is".
(29) In Section 884.056, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "commissioner" in each
place the word appears in that section and substitute "department".
(30) In Section 884.554, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "COMMISSIONER" in the
section heading and substitute "DEPARTMENT" and strike
"commissioner" in each other place the word appears in that section
and substitute "department".
(31) In Chapter 884, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Subchapter O and
substitute the following:
SUBCHAPTER O. GENERAL FINANCIAL REGULATION
Sec. 884.701. HAZARDOUS FINANCIAL CONDITION, SUPERVISION,
CONSERVATORSHIP, AND LIQUIDATION. Articles 1.32, 21.28, and 21.28-A
apply to a stipulated premium company engaged in the business of
insurance in this state. (New.)
(32) In Section 885.203, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike "any
state court" and substitute "a state court".
(33) In Section 885.404, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (c), strike "the
life of a woman" and substitute "a female risk".
(34) In Section 885.501, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subdivision (2), strike
"benefit members" and substitute "members holding benefit
certificates".
(35) In Section 885.703, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(3), strike
"the fine" and substitute "a fine".
(36) In Section 886.001, Insurance Code, as added by SECTION
1 of the bill (introduced version), between "entity" and
"authorized", insert ", including a society or association of any
sort,".
(37) In Section 886.104, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (d), strike
"certificate" and substitute "policy".
(38) In Section 886.107, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike the
first sentence and substitute: "For the filing of each annual
statement, the department shall charge the appropriate fee."
(39) In Section 887.001, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subdivisions (3)-(6) and
substitute the following:
(3) "Insurance certificate" means an insurance policy,
contract of insurance, certificate of membership, or other document
through which insurance is effected or evidenced.
(4) "Member" includes a certificate holder or any
other insured of an association.
(5) "Membership fee" means the amount of the first
assessment or assessments placed in the expense fund of an
association and representing the cost of soliciting or procuring a
member, as permitted by the department.
(6) "Mortuary fund" includes a mortuary fund, relief
fund, claim fund, or similar fund.
(40) In Section 887.051, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (c) and
substitute the following:
(c) An association's bylaws must contain all things required
by this chapter and may not contain any provision in conflict with
this chapter.
(41) In Section 887.054, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(3), strike
"loss to the association" and substitute "loss sustained by the
association".
(42) In Chapter 887, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 887.054, 887.064,
887.203, 887.207, 887.210, 887.352, 887.353, 887.354, 887.355,
887.356, 887.357, 887.359, 887.360, and 887.406, strike "claim
fund" in each place the phrase appears in those sections and
substitute "mortuary fund".
(43) In Section 887.055, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a)(3), strike
"loss to the association" and substitute "loss sustained by the
association".
(44) In Section 887.055, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "claim funds" and
substitute "mortuary funds".
(45) In Section 887.060, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(3), strike
"claim and expense funds" and substitute "mortuary and expense
funds".
(46) In Sections 887.154, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subdivision (3)(A),
strike "expense and claim funds" and substitute "mortuary and
expense funds".
(47) In Section 887.255, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the section heading, before
"INSURANCE", insert "LIFE".
(48) In Section 887.255, Insurance Code, as added by SECTION
1 of the bill (introduced version), following Subsection (g),
insert the following:
(h) This section does not apply to health and accident
insurance policies.
(49) In Section 887.301, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (d)(2), strike
"or claim".
(50) In Section 887.302, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike
"accident and health" and substitute "accident, health, and
hospitalization".
(51) In Chapter 887, Insurance Code, as added by SECTION 1
of the bill (introduced version), in the heading for Subchapter H,
strike "CLAIM" and substitute "MORTUARY".
(52) In Section 887.351, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "CLAIM" in the section
heading and substitute "MORTUARY" and strike "claim" in the other
place the word appears in that section and substitute "mortuary".
(53) In Section 887.354, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a)(2), strike
"accident or health" and substitute "accident, health, or
hospitalization".
(54) In Section 887.358, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "CLAIM FUND" in the
section heading and substitute "MORTUARY FUND" and strike "claim
fund" in the other place the phrase appears in that section and
substitute "mortuary fund".
(55) In Section 887.360, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "accident or health" in
each place the phrase appears in that section and substitute
"accident, health, or hospitalization".
(56) In Section 887.404, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "ACCIDENT AND HEALTH" in
the section heading and substitute "ACCIDENT, HEALTH, AND
HOSPITALIZATION" and strike "accident and health" in the other
place the phrase appears in that section and substitute "accident,
health, and hospitalization".
(57) In Section 887.405, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (d), after
"compute", insert "or cause to be computed".
(58) In Section 887.455, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a)(1), strike
"any laws" and substitute "all laws".
(59) In Section 887.457, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "CLAIM FUND" in the
section heading and substitute "MORTUARY FUND" and strike "claim
fund" in each other place the phrase appears in that section and
substitute "mortuary fund".
(60) In Section 887.502, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subdivision (1), strike "or
claim".
(61) In Chapter 887, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Subchapter L and
substitute the following:
SUBCHAPTER L. GENERAL FINANCIAL REGULATION
Sec. 887.551. HAZARDOUS FINANCIAL CONDITION, SUPERVISION,
CONSERVATORSHIP, AND LIQUIDATION. Articles 1.32, 21.28, and
21.28-A apply to an association engaged in the business of
insurance in this state. (New.)
(62) In Section 888.151, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the section heading, strike
"STUDIES RELATED TO BURIAL ASSOCIATIONS AND" and substitute "DATA
COLLECTION RELATED TO".
(63) In Chapter 888, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 888.151 and
substitute the following:
Sec. 888.151. STUDIES RELATED TO BURIAL ASSOCIATIONS AND
RATES. (a) The commissioner shall:
(1) collect data, statistics, and information on the
death rates, lapses, experiences, and other information relating to
burial association rates in and outside of this state that the
commissioner considers useful in determining reasonable and
adequate rates for burial associations; and
(2) study the statistics, rates, and experiences of
burial associations.
(b) The commissioner may distribute information collected
under Subsection (a)(1) to burial associations in this state.
(V.T.I.C. Arts. 14.47, 14.48 (part).)
(64) In Section 888.152, Insurance Code, as added by SECTION
1 of the bill (introduced version), in the section heading, strike
"BY COMMISSIONER".
(65) In Section 888.152, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (e), strike
"commissioner" and substitute "department".
(66) In Section 888.154, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "commissioner" in each
place the word appears in that section and substitute "department"
and strike "commissioner's" in each place the word appears in that
section and substitute "department's".
(67) In Section 888.156, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike
"commissioner's" and substitute "department's" and strike
"commissioner" and substitute "department".
(68) In Section 888.157, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike
"commissioner's" and substitute "department's".
(69) In Section 888.202, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike
"commissioner" and substitute "department".
(70) In Chapter 888, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 888.204 and
substitute the following:
Sec. 888.204. CERTAIN AFFILIATIONS BETWEEN BURIAL
ASSOCIATIONS AND FUNERAL HOMES PROHIBITED. (a) It is against the
public policy of this state for a funeral home or an owner of an
interest in a funeral home to be directly or indirectly connected
or affiliated with more than one burial association.
(b) The commissioner shall adopt rules as necessary to
implement this section. (V.T.I.C. Art. 14.51 (part).)
(71) In Section 911.202, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike
"principal office" and substitute "home office".
(72) In Section 911.303, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (b) and
substitute the following:
(b) The farm mutual insurance company may contract for
mutual or reciprocal reinsurance with another company on the mutual
or cooperative plan subject to the following conditions:
(1) the farm mutual company may assume the reinsurance
on the risks of the other company only if the other company
reinsures the risks of the farm mutual insurance company; and
(2) the farm mutual company may write or assume the
reinsurance only on property that the company is authorized to
insure and that is located in this state.
(73) In Section 911.303, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (c), strike
"contract of interinsurance" and substitute "reinsurance contract".
(74) In Section 912.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (a) and
substitute the following:
(a) A county mutual insurance company is exempt from the
operation of all insurance laws of this state, including the
flexible rating program under Article 5.101, except laws that are
made applicable by their specific terms or except as specifically
provided by this chapter.
(75) In Section 912.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(1), strike ",
822.057(a)(3), (b), and (c), 822.058(b) and (c),".
(76) In Section 912.055, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subdivision (2), strike
"association" and substitute "company".
(77) In Section 912.251, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "Articles 21.07 and
21.14" and substitute "Article 21.07 or 21.14".
(78) In Section 912.304, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (b) and
substitute the following:
(b) The county mutual insurance company may contract for
mutual or reciprocal reinsurance with another company on the mutual
or cooperative plan subject to the following conditions:
(1) the county mutual insurance company may assume the
reinsurance on the risks of the other company only if the other
company reinsures the risks of the county mutual insurance company;
and
(2) the county mutual insurance company may write or
assume the reinsurance only on property that the company is
authorized to insure and that is located in this state.
(79) In Section 912.304, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (c), strike
"contract of interinsurance" and substitute "reinsurance contract".
(80) In Chapter 912, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Subchapter G, insert new
Section 912.310 to read as follows:
Sec. 912.310. CERTAIN COMPANIES EXEMPT. (a) Chapter 196,
Acts of the 53rd Legislature, Regular Session, 1953, and Chapter
117, Acts of the 54th Legislature, Regular Session, 1955, do not
apply to a county mutual insurance company:
(1) that was organized and operating as a county
mutual fire insurance company on May 22, 1953; and
(2) the business of which is devoted exclusively to
the writing of industrial fire insurance policies covering
dwellings, household goods and wearing apparel on a weekly,
monthly, or quarterly basis on a continuous premium payment plan.
(b) The exemption established by this section applies only
so long as the company is engaged exclusively in the writing of
industrial fire insurance policies described by Subsection (a).
(V.T.I.C. Art. 17.02 (part).)
(81) In Chapter 912, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Subchapter O and
substitute the following:
SUBCHAPTER O. GENERAL FINANCIAL REGULATION
Sec. 912.701. HAZARDOUS FINANCIAL CONDITION, SUPERVISION,
CONSERVATORSHIP, AND LIQUIDATION. Articles 1.32, 21.28, and 21.28-A
apply to a county mutual insurance company engaged in the business
of insurance in this state. (New.)
(82) In Section 941.003, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (a) and
substitute the following:
(a) A Lloyd's plan is exempt from the operation of all
insurance laws of this state except as specifically provided in
this chapter or unless it is specifically provided in the other law
that the law is applicable.
(83) In Section 941.003, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (d)(1), strike
"replaces" and substitute "are instead of".
(84) In Section 941.004, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike "commissioner" in each
place the word appears in that section and substitute "department".
(85) In Section 941.102, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b)(6), strike
"commissioner" and substitute "department".
(86) In Section 941.202, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (d), between
"fact" and "may", insert "for a Lloyd's plan".
(87) In Chapter 941, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 941.206 and
substitute the following:
Sec. 941.206. HAZARDOUS FINANCIAL CONDITION, SUPERVISION,
CONSERVATORSHIP, AND LIQUIDATION; IMPAIRMENT OF SURPLUS. (a)
Articles 1.32, 21.28, and 21.28-A apply to a Lloyd's plan engaged
in the business of insurance in this state.
(b) Section 5, Article 1.10, applies to a Lloyd's plan.
(V.T.I.C. Art. 18.07; New.)
(88) In Section 941.251, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), in the first
sentence, between "fact" and the period, insert "for a Lloyd's
plan".
(89) In Section 942.001, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subdivision (1), between
"authorization" and the comma, insert "of the attorney in fact".
(90) In Section 942.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (c) and
substitute the following:
(c) An exchange may not engage in the business of life
insurance.
(91) In Section 942.003, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (a) and
substitute the following:
(a) An exchange is exempt from the operation of all
insurance laws of this state except as specifically provided in
this chapter or unless exchanges are specifically mentioned in the
other law.
(92) In Section 942.003, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (e)(1), strike
"subscriber declaration" and substitute "declaration of the
subscribers".
(93) In Section 942.159, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subsection (a) and
substitute the following:
(a) An attorney in fact commits an offense if the attorney
in fact:
(1) exchanges a reciprocal or interinsurance contract
without first complying with the law governing the contract; or
(2) directly or indirectly solicits or negotiates an
application for the contract without first complying with the law
governing the contract.
(94) In Section 942.203, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (a), strike
"appropriate" and substitute "applicable".
(95) In Section 961.001, Insurance Code, as added by SECTION
1 of the bill (introduced version), strike Subdivision (2) and
substitute the following:
(2) "Benefit certificate" means a document issued to a
participant that states the benefits and other required matters
under a group contract for legal services or an individual contract
for legal services issued to a participant.
(96) In Section 961.002, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (b), strike
Subdivisions (1)-(6) and substitute the following:
(1) Articles 1.01, 1.09-1, 1.11, 1.12, 1.13, 1.15,
1.15A, 1.16, 1.17, 1.18, 1.19, 1.20, 1.21, 1.22, 21.21, 21.21-2,
21.28, 21.28-A, 21.47, and 21.49-8;
(2) Sections 2, 6, and 17, Article 1.10;
(3) Sections 31.002, 31.004, 31.007, 31.021, 31.022,
31.023, 31.025, 31.026, 31.027, 32.001, 32.002, 32.003, 32.021,
32.022(a), 32.023, 32.041, 33.002, 33.006, 38.001, 81.004, 801.001,
801.002, 801.051-801.055, 801.057, 801.101, 801.102, 802.003,
841.251, and 841.252;
(4) Subchapter B, Chapter 31;
(5) Subchapter D, Chapter 36;
(6) Subchapter A, Chapter 805; and
(7) Chapter 824.
(97) In Chapter 961, Insurance Code, as added by SECTION 1
of the bill (introduced version), strike Section 961.003 and
substitute the following:
Sec. 961.003. CORPORATION SUBJECT TO DEPARTMENT REGULATION.
Each nonprofit legal services corporation is subject to this
chapter and to direct regulation by the department. (V.T.I.C.
Arts. 23.02 (part), 23.09 (part).)
(98) In Section 961.203, Insurance Code, as added by SECTION
1 of the bill (introduced version), in Subsection (e), strike
"Income" and substitute "Net income".
(99) In Section 961.252, Insurance Code, as added by SECTION
1 of the bill (introduced version), between "A" and "certificate",
insert "benefit".
(100) In Section 961.303, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subsection (a)(2),
strike "relations" and substitute "relationship".
(101) In Section 961.355, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subsection (a),
between "a" and "renewal application", insert "completed".
(102) In Section 961.357, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subsection (d)(2),
between "receives the" and "application", insert "completed".
(103) In Section 982.001, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subdivision (2),
strike ""Alien company"" and substitute ""Alien insurance
company"".
(104) In Section 982.001, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike Subdivision (3)
and substitute the following:
(3) "Domestic insurance company" has, in the context
of a life insurance company, accident insurance company, life and
accident insurance company, health and accident insurance company,
or life, health, and accident insurance company, the meaning
assigned by Section 841.001.
(105) In Section 982.001, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike Subdivision (4)
and substitute the following:
(4) "Foreign insurance company" means an insurance
company organized under the laws of another state of the United
States.
(106) In Section 982.001, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike Subdivision (6)
and substitute the following:
(6) "Policyholder" has, in the context of a life
insurance company, accident insurance company, life and accident
insurance company, health and accident insurance company, or life,
health, and accident insurance company, the meaning assigned by
Section 841.001.
(7) "Trusteed asset" means an asset that an authorized
alien insurance company is required or permitted by this chapter to
deposit with one or more trustees for the security of the company's
policyholders in the United States.
(107) In Section 982.004, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in the section heading,
strike "ALIEN COMPANIES" and substitute "ALIEN INSURANCE
COMPANIES".
(108) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 982.004, 982.051, and
982.302, strike "foreign company" in each place the phrase appears
in those sections and substitute "foreign insurance company".
(109) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 982.004, 982.110,
982.111, 982.112, 982.201, 982.202, 982.203, 982.204, and 982.254,
strike "alien company" in each place the phrase appears in those
sections and substitute "alien insurance company".
(110) In Section 982.051, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subdivisions (1) and
(2), strike "the company" in each place the phrase appears in those
subdivisions and substitute "the foreign insurance company".
(111) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Section 982.052, strike "A
foreign company or alien company" and substitute "Except as
provided by Chapter 101 or 981, a foreign or alien insurance
company".
(112) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 982.102, 982.104,
982.106, 982.107, 982.301, 982.303, 982.304, and 982.305, strike
"foreign or alien company" in each place the phrase appears in
those sections and substitute "foreign or alien insurance company".
(113) In Section 982.103, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "ALIEN COMPANY"
in the section heading and substitute "ALIEN INSURANCE COMPANY" and
strike "alien company" in the other place the phrase appears in
that section and substitute "alien insurance company".
(114) In Section 982.108, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "ALIEN
COMPANIES" in the section heading and substitute "ALIEN INSURANCE
COMPANY" and strike "alien company" in the other place the phrase
appears in that section and substitute "alien insurance company".
(115) In Section 982.113, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subsection (a)(2),
strike "will not be hazardous" and substitute "will not create a
condition that might be hazardous".
(116) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in the headings for Subchapters D
and E, strike "ALIEN COMPANIES" and substitute "ALIEN INSURANCE
COMPANIES".
(117) In Section 982.251, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "ALIEN COMPANY"
in the section heading and substitute "ALIEN INSURANCE COMPANY" and
strike "alien company's" in the place the phrase appears in that
section and substitute "alien insurance company's".
(118) In Section 982.252, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "ALIEN COMPANY"
in the section heading and substitute "ALIEN INSURANCE COMPANY" and
strike "alien company" in each other place the phrase appears in
that section and substitute "alien insurance company".
(119) In Chapter 982, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 982.252 and 982.253,
strike "alien company's" in each place the phrase appears in those
sections and substitute "alien insurance company's".
(120) In Section 982.255, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "ALIEN COMPANY"
in the section heading and substitute "ALIEN INSURANCE COMPANY",
strike "alien company's" in the place the phrase appears in that
section and substitute "alien insurance company's", and strike
"alien company" in the place the phrase appears in that section and
substitute "alien insurance company".
(121) In Section 983.055, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) The insurer or health maintenance organization, under
conditions approved by the commissioner and with an appropriate
endorsement, may continue to use an insurance policy or evidence of
coverage form that was approved before the redomestication.
(122) In Section 984.001, Insurance Code, as added by
SECTION 1 of the bill (introduced version), in Subsection (a),
strike Subdivision (2) and substitute the following:
(2) authorized to write insurance policies described
by Subsection (b) by those laws, the company's charter or articles
of association, and a license that is in effect and that is issued
by the appropriate insurance regulatory authority of the United
Mexican States or any state of that nation.
(123) In Chapter 984, Insurance Code, as added by SECTION 1
of the bill (introduced version), in Sections 984.101, 984.102,
984.103, and 984.153, strike "commissioner" in each place the word
appears in those sections and substitute "department".
(124) In Section 984.201, Insurance Code, as added by
SECTION 1 of the bill (introduced version), strike "or renew".
(125) In Section 1101.006, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
between "years" and "during", insert "from its date of issue".
(126) In Section 1101.006, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike "incontestible" and substitute "incontestable".
(127) In Section 1101.009, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike "This section does not apply to:" and substitute "The
following policies are not required to comply with this section:".
(128) In Section 1101.010, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) A term life insurance policy is not required to comply
with this section.
(129) In Section 1101.054, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b),
strike "life insurance policy or an endowment" and substitute "life
or endowment insurance policy".
(130) In Section 1101.054, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (c),
strike "insurance, endowment," and substitute "life or endowment
insurance".
(131) In Section 1101.055, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b)(3),
strike "commissioner under Subchapter A" and substitute "department
under Article 3.42".
(132) In Section 1101.101, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b),
strike "Subchapter A" and substitute "Article 3.42".
(133) In Section 1101.151, Insurance Code, as added by
SECTION 2 of the bill (introduced version), between the period and
"(New.)", insert: "This subchapter does not apply to a term life
insurance policy."
(134) In Section 1101.153, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (c)
strike "the life of a woman" and substitute "a female risk".
(135) In Section 1101.156, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "premium
payments and the value of the policy is applied to the purchase of
other insurance that" and substitute "premium payments, the value
of the policy shall be applied to the purchase of other insurance
and".
(136) In Section 1103.102, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike "and designates in writing filed with the company that
issues the policy a beneficiary to receive the proceeds of the
policy," and substitute ", designates in writing a beneficiary to
receive the proceeds of the policy, and files the writing with the
company that issues the policy,".
(137) In Section 1105.002, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) This chapter also applies to a policy issued by a
company after a date specified in a written notice:
(1) that was filed by the company with the State Board
of Insurance after August 23, 1963, but before January 1, 1974; and
(2) under which the company filing the notice elected
to comply before January 1, 1974, with the law codified by this
chapter.
(138) In Section 1105.003, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike Subdivisions (1)-(3) and substitute the following:
(1) reinsurance;
(2) group insurance;
(3) pure endowment;
(139) In Chapter 1105, Insurance Code, as added by SECTION 2
of the bill (introduced version), strike Section 1105.004 and
substitute the following:
Sec. 1105.004. REQUIRED NONFORFEITURE PROVISIONS. (a) A
life insurance policy delivered or issued for delivery in this
state must contain in substance the provisions prescribed by
Subsections (b), (c), and (d) or corresponding provisions that:
(1) in the opinion of the department, are at least as
favorable to the defaulting or surrendering policyholder; and
(2) essentially comply with Section 1105.012.
(b) A life insurance policy must provide that if there is a
default in the payment of a premium the company, on proper request
not later than the 60th day after the due date of the premium that
is in default, will grant a paid-up nonforfeiture benefit on a plan
stipulated in the policy, effective as of that due date, in the
amount specified by this chapter. A company may substitute for the
paid-up nonforfeiture benefit required by this subsection an
actuarially equivalent alternative paid-up nonforfeiture benefit
that provides a greater amount or longer period of death benefits
or, if applicable, a greater amount or earlier payment of endowment
benefits. To elect an alternative paid-up nonforfeiture benefit
under this subsection, the person entitled to make the election
must submit a proper request not later than the 60th day after the
due date of the premium that is in default.
(c) A life insurance policy must:
(1) provide that on surrender of the policy not later
than the 60th day after the due date of a premium payment that is
in default the company will pay, in lieu of a paid-up nonforfeiture
benefit, a cash surrender value in the amount specified by this
chapter if the premiums have been paid for at least:
(A) three full years for a policy of ordinary
insurance; or
(B) five full years for a policy of industrial
insurance;
(2) provide that a specified paid-up nonforfeiture
benefit is effective as specified by the policy unless the person
entitled to make the election elects another available option not
later than the 60th day after the due date of a premium payment
that is in default; and
(3) provide that on surrender of the policy not later
than the 30th day after any policy anniversary the company will pay
a cash surrender value in the amount specified by this chapter if:
(A) the policy has become paid up by completion
of all premium payments; or
(B) the policy is continued under a paid-up
nonforfeiture benefit that became effective on or after:
(i) the third policy anniversary for a
policy of ordinary insurance; or
(ii) the fifth policy anniversary for a
policy of industrial insurance.
(d) A life insurance policy must contain:
(1) subject to Subsection (e), a statement of:
(A) the mortality table, interest rate, and
method used to compute the cash surrender values and the paid-up
nonforfeiture benefits available under the policy, if the policy:
(i) causes, on a basis guaranteed by the
policy, unscheduled changes in benefits or premiums; or
(ii) provides an option for changes in
benefits or premiums other than a change to a new policy; or
(B) the mortality table and interest rate used
to compute the cash surrender values and the paid-up nonforfeiture
benefits available under the policy, with a table showing the cash
surrender value, if any, and paid-up nonforfeiture benefit, if any,
available under the policy on each policy anniversary during the
first 20 policy years or the term of the policy, whichever is
shorter, if the policy is a policy other than one described by
Paragraph (A)(i) or (ii);
(2) a statement that the cash surrender values and the
paid-up nonforfeiture benefits available under the policy are not
less than the minimum values and benefits required by the insurance
laws of this state;
(3) an explanation of the manner in which the cash
surrender values and the paid-up nonforfeiture benefits are altered
by the existence of any paid-up additions credited to the policy or
any indebtedness to the company on the policy and, if a detailed
statement of the method used to compute the values and benefits
shown in the policy is not stated in the policy, a statement that
the method of computation has been filed with the department; and
(4) a statement of the method to be used to compute
the cash surrender value and paid-up nonforfeiture benefit
available under the policy on any policy anniversary after the last
anniversary for which those values and benefits are consecutively
shown in the policy.
(e) The values and benefits described by Subsection
(d)(1)(B) must be computed on the assumption that:
(1) there are no dividends or paid-up additions
credited to the policy; and
(2) there is no indebtedness to the company on the
policy.
(f) A provision prescribed by Subsection (b), (c), or (d) or
a portion of a provision that does not apply because of the plan of
insurance may, to the extent inapplicable, be omitted from the
policy.
(g) A company shall reserve the right to defer payment of
any cash surrender value for a period of six months after demand
for payment of the cash surrender value and surrender of the
policy. (V.T.I.C. Art. 3.44a, Sec. 2.)
(140) In Section 1105.005, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b),
strike "the life of a woman" and substitute "a female risk".
(141) In Section 1105.005, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (e),
strike "commissioner" and substitute "department".
(142) In Section 1105.051, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) This subchapter also applies to a policy issued by a
company after the date specified in a written notice:
(1) that was filed with the State Board of Insurance
after August 31, 1981, but before January 1, 1989; and
(2) under which the company filing the notice elected
to comply before January 1, 1989, with the law codified by this
subchapter.
(143) In Section 1105.052, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (d),
strike "on the date the policy is issued" and substitute "on the
date of issue of the policy".
(144) In Section 1105.055, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsections (h) and
(i), strike "commissioner rule" in each place the phrase appears in
those subsections and substitute "rules adopted by the
commissioner".
(145) In Section 1105.101, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsections (b) and
(d), strike "commissioner" in each place the word appears in those
subsections and substitute "department".
(146) In Section 1105.101, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (c),
strike "by commissioner rule" and substitute "under rules adopted
by the commissioner".
(147) In Section 1105.152, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) This section also applies to an ordinary policy issued
by a company after a date specified in a written notice:
(1) that was filed by the company with the State Board
of Insurance after August 23, 1963, but before January 1, 1974; and
(2) under which the company filing the notice elected
to comply before January 1, 1974, with the law codified by this
section.
(148) In Section 1105.152, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (e),
strike "the life of a woman" and substitute "a female risk".
(149) In Section 1105.152, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (g),
strike "commissioner" and substitute "department".
(150) In Section 1105.153, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) This section also applies to an industrial policy issued
by a company after a date specified in a written notice:
(1) that was filed by the company with the State Board
of Insurance after August 23, 1963, but before January 1, 1974; and
(2) under which the company filing the notice elected
to comply before January 1, 1974, with the law codified by this
section.
(151) In Section 1105.153, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (f),
strike "commissioner" and substitute "department".
(152) In Section 1106.009, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (e).
(153) In Section 1106.010, Insurance Code, as added by
SECTION 2 of the bill (introduced version), between "chapter" and
the period, insert ", and the disclosure required by Section
1106.009 must be made in the form and manner prescribed by the
commissioner after notice and hearing".
(154) In Section 1107.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) This chapter also applies to an annuity contract issued
by a company after a date specified in a written notice:
(1) that was filed with the State Board of Insurance
after August 29, 1977, but before August 29, 1979; and
(2) under which the company filing the notice elected
to comply before August 29, 1979, with the law codified by this
chapter.
(155) In Section 1107.002, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike Subdivisions (1) and (2) and substitute the following:
(1) a reinsurance contract;
(2) a group annuity contract that is purchased under a
retirement plan or plan of deferred compensation established or
maintained by an employer, including a partnership or sole
proprietorship, by an employee organization, or by both, other than
a plan that provides individual retirement accounts or individual
retirement annuities under Section 408, Internal Revenue Code of
1986, as amended;
(156) In Section 1107.004, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (a)
and substitute the following:
(a) Notwithstanding the requirements of Section 1107.003, an
annuity contract may provide that the company has the option to
terminate the contract by making a cash payment of the then present
value of that portion of the paid-up annuity benefit if:
(1) no considerations are received under the contract
for two years; and
(2) at maturity, payments on the portion of the
paid-up annuity benefit on the plan stipulated in the contract
attributable to considerations paid before that period would be
less than $20 each month.
(157) In Chapter 1107, Insurance Code, as added by SECTION 2
of the bill (introduced version), strike Section 1107.053 and
substitute the following:
Sec. 1107.053. CONTRACT WITH FIXED, SCHEDULED
CONSIDERATIONS. (a) For an annuity contract that provides for the
payment of fixed, scheduled considerations, the minimum
nonforfeiture amount is computed in the same manner as the minimum
nonforfeiture amount for an annuity contract with flexible
considerations that are paid annually, except that:
(1) the amount of net consideration for a contract
year is computed using an annual contract charge equal to the
lesser of:
(A) $30; or
(B) 10 percent of the amount of the gross annual
considerations paid on the contract; and
(2) the percentage of the net consideration amount for
the first contract year to be used to compute the minimum
nonforfeiture amount is 65 percent of the amount of net
consideration for the first contract year plus 22.5 percent of the
amount by which the amount of net consideration for the first
contract year exceeds the lesser of:
(A) the amount of net consideration for the
second contract year; or
(B) the amount of net consideration for the
third contract year.
(b) The computation made under Subsection (a) must assume
that the considerations are paid annually in advance. (V.T.I.C.
Art. 3.44b, Sec. 2(b).)
(158) In Chapter 1107, Insurance Code, as added by SECTION 2
of the bill (introduced version), strike Section 1107.102 and
substitute the following:
Sec. 1107.102. COMPUTATION OF PAID-UP ANNUITY BENEFIT UNDER
CERTAIN CONTRACTS. (a) This section applies only to an annuity
contract that does not provide a cash surrender benefit.
(b) Subject to Subsection (e), the present value of a
paid-up annuity benefit available as a nonforfeiture option before
the maturity date may not be less than the present value of the
portion of the maturity value of the paid-up annuity benefit
provided under the contract that arises from considerations paid on
the contract before the date the contract is surrendered in
exchange for or is changed to a deferred paid-up annuity.
(c) The present value of a paid-up annuity benefit under
Subsection (b) shall be:
(1) computed for the period before the maturity date
on the basis of the interest rate specified in the contract for
accumulating the net considerations paid on the contract to
determine the maturity value; and
(2) increased by any additional amount credited by
the company to the contract.
(d) Subject to Subsection (e), for an annuity contract that
does not provide a death benefit before annuity payments begin, the
present value of a paid-up annuity benefit available as a
nonforfeiture option shall be computed using the interest rate and
the mortality table specified in the contract for determining the
maturity value of the paid-up annuity benefit.
(e) The present value of a paid-up annuity benefit may not
be less than the minimum nonforfeiture amount on the date of
surrender or change. (V.T.I.C. Art. 3.44b, Sec. 5.)
(159) In Section 1107.106, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "the value of
the minimum nonforfeiture benefits is an amount equal to the value"
and substitute "the minimum nonforfeiture benefits are equal to the
sum".
(160) In Chapter 1110, Insurance Code, as added by SECTION 2
of the bill (introduced version), in the chapter heading, strike
"LIFE INSURANCE" and substitute "CERTAIN".
(161) In Section 1110.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (1)(B),
strike "life insurance policy loan" and substitute "policy loan".
(162) In Section 1110.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (2),
strike ""Life insurance policy loan"" and substitute ""Policy
loan"".
(163) In Section 1110.003, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "life insurance
policy loans" and substitute "policy loans".
(164) In Section 1110.004, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b),
strike "must provide for" and substitute "must include a provision
for".
(165) In Section 1110.004, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b)(2),
strike "is adjustable" and substitute "is an adjustable maximum
interest rate established from time to time by the life insurer as
permitted by law".
(166) In Section 1110.004, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsections (b) and
(c), strike "life insurance policy loan" in each place the phrase
appears in those subsections and substitute "policy loan".
(167) In Section 1110.005, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (1),
strike "rate under" and substitute "interest rate determined
under".
(168) In Section 1110.007, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsections (d) and
(e), strike "life insurance policy loan" in each place the phrase
appears in those subsections and substitute "policy loan".
(169) In Section 1111.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (1)(B),
strike "transfer" and substitute "assignment, transfer, bequest,
devise, or sale".
(170) In Section 1111.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subdivisions (3)
and (4) and substitute the following:
(3) "Viatical settlement" means an agreement that is
solicited, negotiated, offered, entered into, delivered, or issued
for delivery in this state under which a person pays anything of
value that is:
(A) less than the expected death benefit of a
policy insuring the life of an individual who has a catastrophic or
life-threatening illness or condition; and
(B) paid in return for the policy owner's or
certificate holder's assignment, transfer, bequest, devise, or sale
of the death benefit under or ownership of the policy.
(171) In Section 1111.002, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (2),
strike "transfers" and substitute "sells or otherwise transfers".
(172) In Section 1111.003, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (c),
strike "transfer" in each place the word appears in that subsection
and substitute "sale or purchase".
(173) In Section 1111.005, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a)(8),
between "or" and "of a misdemeanor", insert "was convicted".
(174) In Chapter 1131, Insurance Code, as added by SECTION 2
of the bill (introduced version), in the chapter heading, strike
"FRANCHISE" and substitute "WHOLESALE, FRANCHISE, OR EMPLOYEE".
(175) In Chapter 1131, Insurance Code, as added by SECTION 2
of the bill (introduced version), in Sections 1131.001, 1131.751,
1131.753, 1131.754, 1131.755, 1131.756, and 1131.757, strike
"franchise" in each place the word appears in those sections and
substitute "wholesale, franchise, or employee".
(176) In Section 1131.003, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "FRANCHISE" in
the section heading and substitute "WHOLESALE, FRANCHISE, OR
EMPLOYEE" and strike "franchise" in the other place the word
appears in that section and substitute "wholesale, franchise, or
employee".
(177) In Chapter 1131, Insurance Code, as added by SECTION 2
of the bill (introduced version), in Subchapter A following Section
1131.006, insert the following:
Sec. 1131.007. POLICY FORM. A policy of group life
insurance is subject to Article 3.42. (New.)
(178) In Chapter 1131, Insurance Code, as added by SECTION 2
of the bill (introduced version), in the heading for Subchapter B,
strike "FRANCHISE" and substitute "WHOLESALE, FRANCHISE, OR
EMPLOYEE".
(179) In Section 1131.053, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (a)
and substitute the following:
(a) A group life insurance policy that insures the
employers' employees or the unions' members for the benefit of
persons other than the employers or unions may be issued to the
trustees of a fund established by two or more employers in the same
industry or by one or more labor unions, by one or more employers
in the same industry and one or more labor unions, or by one or
more employers and one or more labor unions whose members are in
the same or related occupations or trades.
(180) In Section 1131.055, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in the section heading,
between "STATES" and the period, insert "GOVERNMENT".
(181) In Section 1131.065, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "FRANCHISE" in
the section heading and substitute "WHOLESALE, FRANCHISE, OR
EMPLOYEE" and strike "franchise" in the other place the word
appears in that section and substitute "wholesale, franchise, or
employee".
(182) In Section 1131.104, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (2),
between "years" and "during", insert "from its date of issue".
(183) In Section 1131.110, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsections (b)
and (c) and substitute the following:
(b) An individual must apply for an individual policy and
pay the first premium to the insurer not later than the 31st day
after the date the individual's employment or membership
terminates.
(c) An individual policy under this section must be issued
without evidence of insurability.
(184) In Section 1131.111, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b)(1),
strike "before the 31st day" and substitute "not later than the
31st day".
(185) In Section 1131.203, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) An insurer may not issue a policy as to which the entire
premium is to be derived from funds contributed by the insured
employees.
(186) In Section 1131.205, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike Subsection (b)
and substitute the following:
(b) An insurer may not issue a policy that provides life
insurance on an employee that, together with any other life
insurance under any group life insurance policies issued to the
employer or to the trustees of a fund established by the employer,
exceeds $250,000, except that if the employee's annual compensation
from the employer or employers multiplied by seven exceeds
$250,000, the group term life insurance may not exceed that
computed amount.
(187) In Section 1131.304, Insurance Code, as added by
SECTION 2 of the bill (introduced version), following Subsection
(b), insert the following:
(c) A group policy issued before September 1, 1969, to a
group described by Section 1131.054 that was in existence on that
date continues in force without regard to whether the number of the
employees or members insured under the policy was less than 75
percent of the employees or members eligible on that date.
(188) In Chapter 1131, Insurance Code, as added by SECTION
2 of the bill (introduced version), in the heading for Subchapter
P, strike "FRANCHISE" and substitute "WHOLESALE, FRANCHISE, OR
EMPLOYEE".
(189) In Section 1131.758, Insurance Code, as added by
SECTION 2 of the bill (introduced version), between "not" and
"affect", insert "impair or otherwise".
(190) In Section 1131.758, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (2),
strike "franchise life insurance" and substitute "wholesale,
franchise, or employee life insurance".
(191) In Section 1131.858, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (b),
strike "under this section" and substitute "in accordance with this
section".
(192) In Section 1132.001, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subsection (a),
strike Subdivisions (1)-(5) and substitute the following:
(1) a life insurance company;
(2) an accident insurance company;
(3) a general casualty insurance company;
(4) a mutual life insurance company;
(5) a mutual or natural premium life insurance
company;
(6) a fraternal benefit society; or
(7) a local mutual aid association.
(193) In Section 1151.055, Insurance Code, as added by
SECTION 2 of the bill (introduced version), strike "in effect
during the lifetime of the insured for the two-year period
following the date of the policy," and substitute "in force for two
years from its date of issue during the lifetime of the insured,".
(194) In Section 1151.055, Insurance Code, as added by
SECTION 2 of the bill (introduced version), in Subdivision (2),
strike "exclusion from coverage for".
(195) In Chapter 1151, Insurance Code, as added by SECTION 2
of the bill (introduced version), strike Section 1151.101 and
substitute the following:
Sec. 1151.101. AUTHORIZED PROVISIONS. In addition to the
provisions required by Subchapter B and Section 1151.152, an
industrial life insurance policy may:
(1) exclude liability or promise a benefit that is
less than the full amount payable as a death benefit if the
insured:
(A) dies by the insured's own hand, regardless
of whether the insured is sane or insane; or
(B) dies as a result of engaging in<