AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Under current law, dependents up to 25 years of age are eligible to be covered under a group life insurance policy.  H.B. 2172 seeks to allow an insurer to cover dependents up to age 26 or at a younger age as stated in the policy and offer more individuals the opportunity to obtain life insurance coverage through a parent's employer at a minimal cost.

 

H.B. 2172 amends current law relating to the eligibility of certain children under group life insurance policies.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

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:

 

(1)  the spouse of each individual eligible to be insured under the policy;

 

(2)  a natural or adopted child of each individual eligible to be insured under the policy if the child is younger than 26 years of age or a younger age stated in the policy, rather than unmarried and younger than 25 years of age, or physically or mentally disabled and under the parents' supervision; or

 

(3)  a natural or adopted grandchild of each individual eligible to be insured under the policy if the child is younger than 26 years of age or a younger age stated in the policy, rather than 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 child is made.

 

SECTION 2.  Makes application of this Act prospective to January 1, 2012.

 

SECTION 3.  Effective date:  September 1, 2011.