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A BILL TO BE ENTITLED
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AN ACT
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relating to the total benefit amount under a prepaid funeral |
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contract. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4054.157, Insurance Code, is amended to |
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read as follows: |
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Sec. 4054.157. LIMIT ON AGENT'S AUTHORITY. A funeral |
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prearrangement life insurance agent licensed under this subchapter |
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may not write any coverage or combination of coverages with an |
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initial guaranteed death benefit on any life that exceeds the total |
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cost of the prepaid funeral benefits purchased under the prepaid |
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funeral contract [$15,000 on any life]. |
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SECTION 2. The change in law made by this Act applies to a |
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prepaid funeral contract that is formed on or after the effective |
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date of this Act. A contract that is formed before the effective |
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date of this Act is covered by the law in effect when the contract |
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was formed, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |