79R16290 AJA-D
By: Shapleigh S.B. No. 506
Substitute the following for S.B. No. 506:
By: Thompson C.S.S.B. No. 506
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, as
effective April 1, 2005, is amended by adding Chapter 560 to read as
follows:
CHAPTER 560. SALE OF LIFE INSURANCE TO CERTAIN MILITARY PERSONNEL
Sec. 560.001. DEFINITION. In this chapter, "life
insurance" does not include credit life insurance as described by
Section 1153.151.
Sec. 560.002. 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. 560.003. ADDITIONAL DISCLOSURE AND MARKETING
STANDARDS. The commissioner by rule shall adopt standards for the
disclosure required under Section 560.002 and for the marketing of
life insurance products specifically directed to members of the
United States armed forces and the Texas National Guard. The
standards adopted under this section must prohibit dishonest and
unfair insurance sales practices. The standards adopted under this
section must be consistent with any federal standards adopted.
Sec. 560.004. 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. 560.005. 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 560.003, 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 September 1, 2005.