87R10119 TYPED
 
  By: Thompson of Harris 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 on the request by the policy owner of:
               (1)  prior to the termination or complete or partial
  surrender of the policy;
               (2)  on the request by the policy owner of a loan
  against or withdrawal of the cash value of the policy; or
               (3)  on the request by the policy owner of 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 must state that the policy holder may consult
  with the insurer's agent, the department, or financial advisor.
         SECTION 2.  This Act takes effect September 1, 2021.