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A BILL TO BE ENTITLED
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AN ACT
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relating to the interest of a governmental entity in a life |
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insurance policy insuring the life of an employee or retired |
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employee of the governmental entity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 1103, Insurance Code, is |
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amended by adding Section 1103.006 to read as follows: |
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Sec. 1103.006. LOCAL GOVERNMENT OR STATE AGENCY AS |
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BENEFICIARY. A local government or state agency, as defined by |
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Section 2256.002, Government Code, or an assignee or designee of a |
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local government or state agency may be designated as a beneficiary |
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in a policy that insures the life of an employee or retired employee |
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of the local government or state agency or an individual who was an |
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employee of a local government or state agency at the time the life |
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insurance policy was issued but subsequently ceased employment for |
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any reason. |
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SECTION 2. Subchapter A, Chapter 2256, Government Code, is |
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amended by adding Section 2256.0165 to read as follows: |
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Sec. 2256.0165. AUTHORIZED INVESTMENTS: GOVERNMENTAL |
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EMPLOYEE LIFE INSURANCE POLICIES. A life insurance policy that |
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insures the life of an employee or retired employee of a local |
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government or state agency, or an individual who was an employee of |
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a local government or state agency at the time the life insurance |
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policy was issued but subsequently ceased employment for any |
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reason, and designates the local government or state agency or an |
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assignee or designee of the local government or state agency as a |
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beneficiary, is an authorized investment of the local government or |
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state agency under this subchapter if: |
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(1) the life insurance policy allows the employee or |
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retired employee to designate a beneficiary for a portion of the |
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policy; and |
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(2) the local government or state agency allows the |
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employee or retired employee to decline coverage under the policy. |
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SECTION 3. This Act takes effect September 1, 2011. |