Bill Text: TX SB2250 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to disclosure of a beneficiary to a funeral director under a life insurance policy.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2025-03-25 - Referred to Business & Commerce [SB2250 Detail]

Download: Texas-2025-SB2250-Introduced.html

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89R181 SCL-D
By: Kolkhorst S.B. No. 2250

A BILL TO BE ENTITLED
AN ACT
relating to disclosure of a beneficiary to a funeral director under
a life insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1103, Insurance Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR
Sec. 1103.201. DEFINITIONS. In this subchapter:
(1) "Funeral director" has the meaning assigned by
Section 651.001, Occupations Code.
(2) "Heir" and "personal representative" have the
meanings assigned by Chapter 22, Estates Code.
Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This
subchapter applies only to a life insurance policy with a death
benefit in an amount of not more than $15,000 issued in this state
by:
(1) a legal reserve life insurance company;
(2) a mutual assessment life insurance company;
(3) a stipulated premium life insurance company;
(4) a burial association; or
(5) a fraternal benefit society.
(b) This subchapter applies only to a funeral director who:
(1) is directing a decedent's funeral in this state;
(2) is provided reasonably sufficient information by
an heir, an heir's representative, or the personal representative
of the decedent that the decedent is or may be an insured under a
life insurance policy; and
(3) needs information from the issuer of the life
insurance policy because an heir, heir's representative, or
personal representative of the decedent is unaware or unable to
provide information on:
(A) whether the decedent was the owner of a life
insurance policy; or
(B) the identity of the designated beneficiary
under the policy.
Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR.
(a) A funeral director to whom this subchapter applies may request
a disclosure in accordance with this section from a life insurer to
which this subchapter applies if the director has obtained written
consent from an heir, an heir's representative, or the personal
representative of the decedent for the director to contact a
specific life insurer concerning designated beneficiaries in a
policy insuring the life of the decedent.
(b) The written consent described by Subsection (a) must
include:
(1) the name and address of the heir, heir's
representative, or personal representative providing consent;
(2) a brief statement of the facts establishing
knowledge as to the family and nearest relatives of the decedent;
(3) a brief statement of facts describing the basis
for the belief the decedent was or may have been an insured under a
life insurance policy with a particular life insurer; and
(4) a brief statement of facts concerning whether the
decedent was or may have been the owner of the policy.
(c) A funeral director shall provide a copy of the written
consent to the life insurer requested to provide information under
this section.
Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as
provided by Subsection (b), a life insurer shall provide a written
disclosure of the designated beneficiary of a life insurance policy
owned by the decedent for which a funeral director requests
information under Section 1103.203. The insurer shall provide the
disclosure not later than the fifth day after the date the insurer
receives the request.
(b) A life insurer may not disclose the designated
beneficiary of a life insurance policy insuring the life of a
decedent if the decedent is not the owner of the policy unless the
life insurer receives the written consent of the owner to provide
the disclosure. The insurer may advise a funeral director who
requests information under Section 1103.203 that the decedent is
not the owner of the policy.
Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter
may not be construed to:
(1) require a life insurer to disclose the owner or
designated beneficiary of a life insurance policy insuring the life
of a decedent that is not owned by the decedent without the owner's
written consent;
(2) establish a right of the funeral director or
assignee of the funeral director to benefits under a life insurance
policy unless the designated beneficiary of the policy has executed
a written assignment of benefits to the funeral director; or
(3) establish any determination that benefits are
payable under the terms of the applicable life insurance policy.
Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is
not subject to civil liability or administrative action by making
an authorized disclosure under this subchapter.
SECTION 2. This Act takes effect September 1, 2025.