81R17808 PMO-F
 
  By: Hancock H.B. No. 2690
 
  Substitute the following for H.B. No. 2690:
 
  By:  Taylor C.S.H.B. No. 2690
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligible policyholders for group life insurance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 1131.053(a) and (d), Insurance Code,
  are amended to read as follows:
         (a)  A group life insurance policy that insures the
  employers' employees or the unions' members for the benefit of
  persons other than the employers or unions may be issued to the
  trustees of a fund established or adopted by two or more employers
  in the same industry or by one or more labor unions, by one or more
  employers in the same industry and one or more labor unions, or by
  one or more employers and one or more labor unions whose members are
  in the same or related occupations or trades.
         (d)  A policy may not be issued under this section to insure
  employees of:
               (1)  an employer whose eligibility to participate in
  the fund as an employer arises out of considerations directly
  related to the employer being a commercial correspondent or
  business client or patron of another employer, without regard to
  whether the other employer participates in the fund; or
               (2)  an employer that is not located in this state,
  unless:
                     (A)  the majority of the employers whose employees
  are to be insured are located in this state; or
                     (B)  the policy is issued to the trustees of a fund
  established or adopted by one or more labor unions.
         SECTION 2.  This Act applies only to an insurance policy or
  contract or evidence of coverage that is delivered, issued for
  delivery, or renewed on or after January 1, 2010. An insurance
  policy or contract or evidence of coverage delivered, issued for
  delivery, or renewed before January 1, 2010, 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.
         SECTION 3.  This Act takes effect September 1, 2009.