87R13508 JES-D
 
  By: Thompson of Harris, Bailes H.B. No. 1932
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to notice of available alternatives to the lapse or
  surrender of a life insurance policy.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 1101, Insurance Code, is amended by
  adding Subchapter G to read as follows:
  SUBCHAPTER G. NOTICE REGARDING ALTERNATIVES TO LAPSE OR SURRENDER
         Sec. 1101.301.  NOTICE OF ALTERNATIVES TO LAPSE OR SURRENDER
  OF POLICY. (a) An insurer shall provide to a policy owner who is at
  least 60 years of age and who has held the policy for at least two
  years a written notice of the existence of potential available
  alternatives to the lapse or surrender of the owner's life
  insurance policy:
               (1)  before the termination or the complete or partial
  surrender of the policy; and
               (2)  on the request by the policy owner of:
                     (A)  a loan against or withdrawal of the cash
  value of the policy; or
                     (B)  any change to the terms of the policy,
  including a change regarding an accelerated death benefit, a
  nursing home benefit, a catastrophic illness benefit, or another
  living benefit.
         (b)  The notice provided under Subsection (a) must state that
  the policy owner may consult with the insurer's agent, the
  department, or a financial advisor regarding the potential
  available alternatives to the lapse or surrender of the owner's
  life insurance policy.
         SECTION 2.  This Act takes effect September 1, 2021.