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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of an automatic premium loan provision in a |
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life insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1101, Insurance Code, is amended by |
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adding Subchapter G to read as follows: |
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SUBCHAPTER G. REQUIRED DISCLOSURES AND NOTICES |
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Sec. 1101.301. DISCLOSURE OF AUTOMATIC PREMIUM LOAN |
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PROVISION. Before issuing a life insurance policy that contains an |
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automatic premium loan provision, an insurer shall: |
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(1) provide a written notice disclosing the automatic |
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premium loan provision that is: |
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(A) printed in at least 16-point font on a |
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separate page of the application or enrollment form for the policy; |
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and |
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(B) signed by the applicant separately from the |
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rest of the application or enrollment form; and |
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(2) read the notice described by Subdivision (1) aloud |
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to the applicant. |
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SECTION 2. Subchapter G, Chapter 1101, Insurance Code, as |
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added by this Act, applies only to an insurance policy delivered, |
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issued for delivery, or renewed on or after January 1, 2024. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2024, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |