BILL ANALYSIS
Senate Research Center S.B. 1680
By: Averitt
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Section 1131.802 (Group Life Insurance and Whole Sale, Franchise, or Employee Life Insurance), Insurance Code, authorizes, but does not require, a carrier issuing group life coverage to extend coverage to dependent children. This section defines a "dependent" to include natural or adopted children younger than 21 years of age, or older than 21 years of age if enrolled as a full-time student at an educational institution or physically or mentally disabled and under a parent's supervision.
As proposed, S.B. 1680 authorizes the extension of insurance under a group life insurance policy to an insured's natural and adopted children who are unmarried and younger than 25 years of age and eliminates the authorization for coverage for children over 21 years of age who are enrolled full-time in an educational institution.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1131.802, Insurance Code, as follows:
Sec. 1131.802. EXTENSION OF GROUP LIFE INSURANCE TO SPOUSES AND CHILDREN; ELIGIBLE CHILDREN. Authorizes insurance under a group life insurance policy to be extended to cover certain children, including a natural or adopted child of each individual eligible to be insured under the policy if the child is unmarried and younger than 25 years of age or is physically or mentally disabled and under the parent's supervision. Authorizes the extension of the insurance coverage if the child is a natural or adopted grandchild of each individual eligible to be covered under the policy if the child is unmarried, younger than 25 years of age, and a dependent of the insured for federal income tax purposes at the time the application for coverage of the grandchild is made. Deletes existing text authorizing the extension of the coverage to natural or adopted child who is older than 21 years of age and enrolled full-time at an educational institution.
SECTION 2. Effective date: September 1, 2007.