78R4947 AKH-D

By:  Ellis                                                        S.B. No. 1621



A BILL TO BE ENTITLED

AN ACT

relating to unclaimed benefits under certain life insurance 
policies.       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 1101, Insurance Code, as effective June 
1, 2003, is amended by adding Subchapter H to read as follows:
	SUBCHAPTER H. UNCLAIMED BENEFITS UNDER CERTAIN POLICIES                 
	Sec. 1101.351.  APPLICABILITY.  (a)  This subchapter applies 
to each insurer authorized to write life insurance in this state 
operating under Chapter 841, 882, 884, or 982.  This subchapter does 
not apply to an insurer operating under Chapter 881, 885, 886, 887, 
or 888, or an insurer exempt under Section 887.102.
	(b)  This subchapter applies to any individual or group life 
insurance policy, other than a term life insurance policy, issued 
in this state, including an industrial insurance policy offered 
under Chapter 1151.
	Sec. 1101.352.  DUE DILIGENCE STANDARDS.  The commissioner 
shall adopt rules as necessary to define minimum standards of due 
diligence that an insurer must exercise relating to the payment of 
unclaimed benefits payable on the death of an insured who is covered 
under more than one life insurance policy issued by the insurer.
	SECTION 2.  Not later than January 1, 2004, the commissioner 
of insurance shall adopt rules as required by Section 1101.352, 
Insurance Code, as added by this Act.
	SECTION 3.  This Act takes effect September 1, 2003.