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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure of a beneficiary to a funeral director under |
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a 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 1103, Insurance Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR |
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Sec. 1103.201. DEFINITIONS. In this subchapter: |
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(1) "Funeral director" has the meaning assigned by |
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Section 651.001, Occupations Code. |
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(2) "Heir" and "personal representative" have the |
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meanings assigned by Chapter 22, Estates Code. |
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Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to a life insurance policy with a death |
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benefit in an amount of not more than $15,000 issued in this state |
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by: |
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(1) a legal reserve life insurance company; |
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(2) a mutual assessment life insurance company; |
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(3) a stipulated premium life insurance company; |
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(4) a burial association; or |
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(5) a fraternal benefit society. |
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(b) This subchapter applies only to a funeral director who: |
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(1) is directing a decedent's funeral in this state; |
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(2) is provided reasonably sufficient information by |
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an heir, an heir's representative, or the personal representative |
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of the decedent that the decedent is or may be an insured under a |
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life insurance policy; and |
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(3) needs information from the issuer of the life |
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insurance policy because an heir, heir's representative, or |
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personal representative of the decedent is unaware or unable to |
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provide information on: |
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(A) whether the decedent was the owner of a life |
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insurance policy; or |
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(B) the identity of the designated beneficiary |
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under the policy. |
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Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR. |
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(a) A funeral director to whom this subchapter applies may request |
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a disclosure in accordance with this section from a life insurer to |
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which this subchapter applies if the director has obtained written |
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consent from an heir, an heir's representative, or the personal |
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representative of the decedent for the director to contact a |
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specific life insurer concerning designated beneficiaries in a |
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policy insuring the life of the decedent. |
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(b) The written consent described by Subsection (a) must |
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include: |
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(1) the name and address of the heir, heir's |
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representative, or personal representative providing consent; |
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(2) a brief statement of the facts establishing |
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knowledge as to the family and nearest relatives of the decedent; |
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(3) a brief statement of facts describing the basis |
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for the belief the decedent was or may have been an insured under a |
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life insurance policy with a particular life insurer; and |
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(4) a brief statement of facts concerning whether the |
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decedent was or may have been the owner of the policy. |
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(c) A funeral director shall provide a copy of the written |
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consent to the life insurer requested to provide information under |
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this section. |
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Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as |
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provided by Subsection (b), a life insurer shall provide a written |
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disclosure of the designated beneficiary of a life insurance policy |
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owned by the decedent for which a funeral director requests |
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information under Section 1103.203. The insurer shall provide the |
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disclosure not later than the fifth day after the date the insurer |
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receives the request. |
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(b) A life insurer may not disclose the designated |
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beneficiary of a life insurance policy insuring the life of a |
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decedent if the decedent is not the owner of the policy unless the |
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life insurer receives the written consent of the owner to provide |
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the disclosure. The insurer may advise a funeral director who |
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requests information under Section 1103.203 that the decedent is |
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not the owner of the policy. |
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Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter |
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may not be construed to: |
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(1) require a life insurer to disclose the owner or |
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designated beneficiary of a life insurance policy insuring the life |
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of a decedent that is not owned by the decedent without the owner's |
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written consent; |
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(2) establish a right of the funeral director or |
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assignee of the funeral director to benefits under a life insurance |
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policy unless the designated beneficiary of the policy has executed |
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a written assignment of benefits to the funeral director; or |
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(3) establish any determination that benefits are |
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payable under the terms of the applicable life insurance policy. |
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Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is |
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not subject to civil liability or administrative action by making |
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an authorized disclosure under this subchapter. |
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SECTION 2. This Act takes effect September 1, 2023. |