By: Ellis S.B. No. 137
A BILL TO BE ENTITLED
AN ACT
relating to certain life insurance policies insuring the life of an
employee or other third parties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1103, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1103.057 to
read as follows:
Sec. 1103.057. CERTAIN LIFE INSURANCE POLICIES INSURING
EMPLOYEES PROHIBITED. (a) An individual who is insured under a life
insurance policy may not designate or consent to the designation of
an individual, partnership, association, corporation, or other
legal entity who is the employer of the individual as a beneficiary
of the policy.
(b) Subsection (a) does not apply if:
(1) the employer is an individual who is related by
blood or marriage to the individual who is insured under the policy;
or
(2) the designation would otherwise be permitted under
Section 1103.003 or 1103.004.
SECTION 2. Section 1103.056, Insurance Code, as effective
June 1, 2003, is repealed.
SECTION 3. This Act takes effect September 1, 2003, and
applies only to an insurance policy that is delivered or issued for
delivery on or after that date. A policy that is delivered or
issued for delivery before September 1, 2003, is governed by the
law as it existed immediately before the effective date of this Act,
and that law is continued in effect for that purpose.