H.B. No. 2690
AN ACT
relating to eligible policyholders for group life insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1131.053(a) and (d), Insurance Code,
are amended to read as follows:
(a) A group life insurance policy that insures the
employers' employees or the unions' members for the benefit of
persons other than the employers or unions may be issued to the
trustees of a fund established or adopted by two or more employers
in the same industry or by one or more labor unions, by one or more
employers in the same industry and one or more labor unions, or by
one or more employers and one or more labor unions whose members are
in the same or related occupations or trades.
(d) A policy may not be issued under this section to insure
employees of:
(1) an employer whose eligibility to participate in
the fund as an employer arises out of considerations directly
related to the employer being a commercial correspondent or
business client or patron of another employer, without regard to
whether the other employer participates in the fund; or
(2) an employer that is not located in this state,
unless:
(A) the majority of the employers whose employees
are to be insured are located in this state; or
(B) the policy is issued to the trustees of a fund
established or adopted by one or more labor unions.
SECTION 2. This Act applies only to an insurance policy or
contract or evidence of coverage that is delivered, issued for
delivery, or renewed on or after January 1, 2010. An insurance
policy or contract or evidence of coverage delivered, issued for
delivery, or renewed before January 1, 2010, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2690 was passed by the House on May
15, 2009, by the following vote: Yeas 144, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2690 was passed by the Senate on May
27, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor