Texas 2009 - 81st Regular

Texas House Bill HB969 Compare Versions

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1	1	81R6083 PB-D
2	2	By: Christian H.B. No. 969
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 $250,000 [$100,000] under one or more policies on a single
17	17	life;
18	18	(2) an amount in excess of:
19	19	(A) $250,000 [$100,000] in the present value
20	20	under one or more annuity contracts issued with respect to a single
21	21	life under individual annuity policies or group annuity policies;
22	22	or
23	23	(B) $5 million in unallocated annuity contract
24	24	benefits with respect to a single contract owner regardless of the
25	25	number of those contracts;
26	26	(3) an amount in excess of the following amounts,
27	27	including any net cash surrender or cash withdrawal values, under
28	28	one or more accident, health, accident and health, or long-term
29	29	care insurance policies on a single life:
30	30	(A) $500,000 for basic hospital,
31	31	medical-surgical, or major medical insurance, as those terms are
32	32	defined by this code or rules adopted by the commissioner;
33	33	(B) $300,000 for disability and long-term care
34	34	insurance, as those terms are defined by this code or rules adopted
35	35	by the commissioner; or
36	36	(C) $200,000 for coverages that are not defined
37	37	as basic hospital, medical-surgical, major medical, disability, or
38	38	long-term care insurance;
39	39	(4) an amount in excess of $250,000 [$100,000] in
40	40	present value annuity benefits, in the aggregate, including any net
41	41	cash surrender and net cash withdrawal values, with respect to each
42	42	individual participating in a governmental retirement benefit plan
43	43	established under Section 401, 403(b), or 457, Internal Revenue
44	44	Code of 1986 (26 U.S.C. Sections 401, 403(b), and 457), covered by
45	45	an unallocated annuity contract or the beneficiary or beneficiaries
46	46	of the individual if the individual is deceased;
47	47	(5) an amount in excess of $250,000 [$100,000] in
48	48	present value annuity benefits, in the aggregate, including any net
49	49	cash surrender and net cash withdrawal values, with respect to each
50	50	payee of a structured settlement annuity or the beneficiary or
51	51	beneficiaries of the payee if the payee is deceased;
52	52	(6) aggregate benefits in an amount in excess of
53	53	$300,000 with respect to a single life, except with respect to:
54	54	(A) benefits paid under basic hospital,
55	55	medical-surgical, or major medical insurance policies, described
56	56	by Subdivision (3)(A), in which case the aggregate benefits are
57	57	$500,000; and
58	58	(B) benefits paid to one owner of multiple
59	59	nongroup policies of life insurance, whether the policy owner is an
60	60	individual, firm, corporation, or other person, and whether the
61	61	persons insured are officers, managers, employees, or other
62	62	persons, in which case the maximum benefits are $5 million
63	63	regardless of the number of policies and contracts held by the
64	64	owner;
65	65	(7) an amount in excess of $5 million in benefits, with
66	66	respect to either one plan sponsor whose plans own directly or in
67	67	trust one or more unallocated annuity contracts not included in
68	68	Subdivision (4) irrespective of the number of contracts with
69	69	respect to the contract owner or plan sponsor or one contract owner
70	70	provided coverage under Section 463.201(a)(3)(B), except that, if
71	71	one or more unallocated annuity contracts are covered contracts
72	72	under this chapter and are owned by a trust or other entity for the
73	73	benefit of two or more plan sponsors, coverage shall be afforded by
74	74	the association if the largest interest in the trust or entity
75	75	owning the contract or contracts is held by a plan sponsor whose
76	76	principal place of business is in this state, and in no event shall
77	77	the association be obligated to cover more than $5 million in
78	78	benefits with respect to all these unallocated contracts;
79	79	(8) any contractual obligations of the insolvent or
80	80	impaired insurer under a covered policy or contract that do not
81	81	materially affect the economic value of economic benefits of the
82	82	covered policy or contract; or
83	83	(9) punitive, exemplary, extracontractual, or bad
84	84	faith damages, regardless of whether the damages are:
85	85	(A) agreed to or assumed by an insurer or
86	86	insured; or
87	87	(B) imposed by a court.
88	88	SECTION 2. The change in law made by this Act applies only
89	89	to an insurer that first becomes an impaired or insolvent insurer on
90	90	or after the effective date of this Act. An insurer that becomes an
91	91	impaired or insolvent insurer before the effective date of this Act
92	92	is governed by the law as it existed immediately before that date,
93	93	and that law is continued in effect for that purpose.
94	94	SECTION 3. This Act takes effect September 1, 2009.