Bill Text: TX HB1932 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to notice of available alternatives to the lapse or surrender of a life insurance policy.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2021-05-03 - Received from the House [HB1932 Detail]
Download: Texas-2021-HB1932-Engrossed.html
87R13508 JES-D | ||
By: Thompson of Harris, Bailes | H.B. No. 1932 |
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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. |