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A BILL TO BE ENTITLED
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AN ACT
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relating to eligible policyholders for group life insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 1131.051(a) and (c), Insurance Code, |
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are amended to read as follows: |
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(a) A group life insurance policy may be issued to an |
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employer or to trustees of a fund established or adopted by an |
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employer to insure the employer's employees for the benefit of |
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persons other than the employer. |
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(c) The employer or the trustees of a fund established or |
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adopted by an employer are the policyholder under a policy to which |
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this section applies. |
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SECTION 2. Sections 1131.053(a) and (d), Insurance Code, |
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are amended to read as follows: |
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(a) A group life insurance policy that insures the |
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employers' employees or the unions' members for the benefit of |
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persons other than the employers or unions may be issued to the |
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trustees of a fund established or adopted by two or more employers |
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in the same industry or by one or more labor unions, by one or more |
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employers in the same industry and one or more labor unions, or by |
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one or more employers and one or more labor unions whose members are |
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in the same or related occupations or trades. |
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(d) A policy may not be issued under this section to insure |
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employees of: |
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(1) an employer whose eligibility to participate in |
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the fund as an employer arises out of considerations directly |
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related to the employer being a commercial correspondent or |
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business client or patron of another employer, without regard to |
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whether the other employer participates in the fund; or |
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(2) an employer that is not located in this state, |
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unless: |
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(A) the majority of the employers whose employees |
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are to be insured are located in this state; or |
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(B) the policy is issued to the trustees of a fund |
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established or adopted by one or more labor unions. |
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SECTION 3. This Act applies only to an insurance policy or |
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contract or evidence of coverage that is delivered, issued for |
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delivery, or renewed on or after January 1, 2010. An insurance |
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policy or contract or evidence of coverage delivered, issued for |
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delivery, or renewed before January 1, 2010, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |