79S10640 AJA-D

By:  Shapleigh                                                    S.B. No. 71 



A BILL TO BE ENTITLED

AN ACT

relating to the sale of life insurance to military personnel; 
providing an administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle C, Title 5, Insurance Code, is amended 
by adding Chapter 560 to read as follows:

CHAPTER 560.  SALE OF LIFE INSURANCE TO CERTAIN MILITARY PERSONNEL
	Sec. 560.001.  REQUIRED DISCLOSURE.  An insurer or an 
insurer's agent may not sell a life insurance policy to a member of 
the United States armed forces or the Texas National Guard unless 
the insurer or agent first notifies the member that subsidized or 
less expensive life insurance may be available to the member from 
the state or federal government.
	Sec. 560.002.  ADDITIONAL DISCLOSURE AND MARKETING 
STANDARDS.  The commissioner by rule shall adopt standards for the 
disclosure required under Section 560.001 and for the marketing of 
life insurance products to members of the United States armed 
forces and the Texas National Guard.  The standards adopted under 
this section must prohibit dishonest and predatory insurance sales 
practices.  The standards adopted under this section must be 
consistent with any federal standards adopted.
	Sec. 560.003.  APPLICABILITY TO CONDUCT ON CERTAIN FEDERAL 
PROPERTY.  To the extent authorized by federal law, this chapter and 
rules adopted under this chapter apply to conduct on a federal 
military installation or other federal land or facility.
	Sec. 560.004.  ENFORCEMENT.  In addition to the sanctions 
authorized by Chapter 82, the commissioner may revoke the 
certificate of authority of an insurer or the license of an agent if 
the commissioner finds that the insurer or agent has violated this 
chapter.
	SECTION 2.  The commissioner of insurance shall adopt rules 
under Section 560.002, Insurance Code, as added by this Act, not 
later than the 60th day after the effective date of this Act.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect November 1, 2005.