BILL ANALYSIS

H.B. 2104

By: Frullo

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There are concerns about the general public's insurance premium dollars being paid out to individuals who commit terroristic acts. H.B. 2104 seeks to address this concern by authorizing life insurance policies to limit payments to beneficiaries if the policyholder committed a terroristic act.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2104 amends the Insurance Code to authorize a life insurance policy to provide that proceeds are limited to the amount paid in premiums if the insured's death occurs as a result of the insured's conduct occurring not later than the second anniversary of the effective date of the policy and constituting an offense involving violence to any person or property and with the intent to do the following:

· place the public or a substantial group of the public in fear of serious bodily injury;

· influence the conduct or activities of a branch or agency of the federal government, the state, or a political subdivision of the state; or

· significantly disrupt or interfere with lawful commerce or the right of lawful assembly.

The bill applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2020.

EFFECTIVE DATE

September 1, 2019.