H.B. 152 78(R)    BILL ANALYSIS


H.B. 152
By: Wilson
Insurance
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Traditionally, insurance companies have been allowed to insure the life of
any employee, regardless of position or place of importance in the
company.  This allows the company to collect the policy amount for their
sole profit and gain.  House Bill 152 prohibits certain insurance policies
that insure the life of an employee. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

House Bill 152 amends the Insurance Code to prohibit an individual,
partnership, association, corporation, or other legal entity who is the
employer of an individual insured under a life insurance policy to be
designated as a beneficiary.  The bill does not prohibit an employer from
being designated as a beneficiary, if the employer is related by blood or
marriage to the insured or the designation would otherwise be permitted
under provisions  relating to corporations, joint stock associations,
trust estates, or partnerships or partners. 

A violation of the provisions of the Act is considered an unfair or
deceptive act or practice in the business of insurance.  An insurer that
violates the provisions of the Act is subject to sanctions under Chapter
82. 


EFFECTIVE DATE

September 1, 2003.