Texas 2009 - 81st Regular

Texas House Bill HB1989 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R7928 PB-D
2	2	By: McReynolds H.B. No. 1989
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain amounts payable by the Texas Life, Accident,
8	8	Health, and Hospital Service Insurance Guaranty Association.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 463.204, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 463.204. OBLIGATIONS EXCLUDED. A contractual
13	13	obligation does not include:
14	14	(1) death benefits in an amount in excess of $300,000
15	15	or a net cash surrender or net cash withdrawal value in an amount in
16	16	excess of $100,000 under one or more policies on a single life;
17	17	(2) an amount in excess of:
18	18	(A) $250,000 [$100,000] in the present value
19	19	under one or more annuity contracts issued with respect to a single
20	20	life under individual annuity policies or group annuity policies;
21	21	or
22	22	(B) $5 million in unallocated annuity contract
23	23	benefits with respect to a single contract owner regardless of the
24	24	number of those contracts;
25	25	(3) an amount in excess of the following amounts,
26	26	including any net cash surrender or cash withdrawal values, under
27	27	one or more accident, health, accident and health, or long-term
28	28	care insurance policies on a single life:
29	29	(A) $500,000 for basic hospital,
30	30	medical-surgical, or major medical insurance, as those terms are
31	31	defined by this code or rules adopted by the commissioner;
32	32	(B) $300,000 for disability and long-term care
33	33	insurance, as those terms are defined by this code or rules adopted
34	34	by the commissioner; or
35	35	(C) $200,000 for coverages that are not defined
36	36	as basic hospital, medical-surgical, major medical, disability, or
37	37	long-term care insurance;
38	38	(4) an amount in excess of $250,000 [$100,000] in
39	39	present value annuity benefits, in the aggregate, including any net
40	40	cash surrender and net cash withdrawal values, with respect to each
41	41	individual participating in a governmental retirement benefit plan
42	42	established under Section 401, 403(b), or 457, Internal Revenue
43	43	Code of 1986 (26 U.S.C. Sections 401, 403(b), and 457), covered by
44	44	an unallocated annuity contract or the beneficiary or beneficiaries
45	45	of the individual if the individual is deceased;
46	46	(5) an amount in excess of $250,000 [$100,000] in
47	47	present value annuity benefits, in the aggregate, including any net
48	48	cash surrender and net cash withdrawal values, with respect to each
49	49	payee of a structured settlement annuity or the beneficiary or
50	50	beneficiaries of the payee if the payee is deceased;
51	51	(6) aggregate benefits in an amount in excess of
52	52	$300,000 with respect to a single life, except with respect to:
53	53	(A) benefits paid under basic hospital,
54	54	medical-surgical, or major medical insurance policies, described
55	55	by Subdivision (3)(A), in which case the aggregate benefits are
56	56	$500,000; and
57	57	(B) benefits paid to one owner of multiple
58	58	nongroup policies of life insurance, whether the policy owner is an
59	59	individual, firm, corporation, or other person, and whether the
60	60	persons insured are officers, managers, employees, or other
61	61	persons, in which case the maximum benefits are $5 million
62	62	regardless of the number of policies and contracts held by the
63	63	owner;
64	64	(7) an amount in excess of $5 million in benefits, with
65	65	respect to either one plan sponsor whose plans own directly or in
66	66	trust one or more unallocated annuity contracts not included in
67	67	Subdivision (4) irrespective of the number of contracts with
68	68	respect to the contract owner or plan sponsor or one contract owner
69	69	provided coverage under Section 463.201(a)(3)(B), except that, if
70	70	one or more unallocated annuity contracts are covered contracts
71	71	under this chapter and are owned by a trust or other entity for the
72	72	benefit of two or more plan sponsors, coverage shall be afforded by
73	73	the association if the largest interest in the trust or entity
74	74	owning the contract or contracts is held by a plan sponsor whose
75	75	principal place of business is in this state, and in no event shall
76	76	the association be obligated to cover more than $5 million in
77	77	benefits with respect to all these unallocated contracts;
78	78	(8) any contractual obligations of the insolvent or
79	79	impaired insurer under a covered policy or contract that do not
80	80	materially affect the economic value of economic benefits of the
81	81	covered policy or contract; or
82	82	(9) punitive, exemplary, extracontractual, or bad
83	83	faith damages, regardless of whether the damages are:
84	84	(A) agreed to or assumed by an insurer or
85	85	insured; or
86	86	(B) imposed by a court.
87	87	SECTION 2. The change in law made by this Act applies only
88	88	to an insurer that first becomes an impaired or insolvent insurer on
89	89	or after the effective date of this Act. An insurer that becomes an
90	90	impaired or insolvent insurer before the effective date of this Act
91	91	is governed by the law as it existed immediately before that date,
92	92	and that law is continued in effect for that purpose.
93	93	SECTION 3. This Act takes effect September 1, 2009.