Texas 2009 - 81st Regular

Texas Senate Bill SB1109 Compare Versions

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Old	New	Differences
1	1	81R9262 PB-F
2	2	By: Jackson, Mike S.B. No. 1109
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the limits of certain life insurance coverage written
8	8	by stipulated premium insurance companies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 884.303(b), Insurance Code, is amended
11	11	to read as follows:
12	12	(b) A stipulated premium company may not insure one life
13	13	under this section for more than $25,000 [$15,000], except as
14	14	provided by Section 884.304 or Subchapter I.
15	15	SECTION 2. Section 884.304, Insurance Code, is amended to
16	16	read as follows:
17	17	Sec. 884.304. LIFE INSURANCE OF MORE THAN $25,000
18	18	[$15,000]. (a) Except as provided by this section, a stipulated
19	19	premium company may not assume liability on a life insurance risk on
20	20	one life in an amount that exceeds $25,000 [$15,000].
21	21	(b) If a stipulated premium company assumes a life insurance
22	22	risk under a life insurance policy, the initial death benefit of
23	23	$25,000 [$15,000] or less may increase to an amount greater than
24	24	$25,000 [$15,000] subject to this section.
25	25	(c) For each policy year of a policy for which, after
26	26	issuance, the death benefit exceeds $25,000 [$15,000], the amount
27	27	of the increase of the death benefit at the end of that policy year
28	28	from the end of the preceding policy year may not exceed the greater
29	29	of:
30	30	(1) the amount computed using the maximum rate of
31	31	increase provided by the policy, which rate may not exceed five
32	32	percent a year, compounded annually; or
33	33	(2) the amount computed using the consumer price index
34	34	for all urban consumers for all items and for all regions of the
35	35	United States combined, as determined by the United States
36	36	Department of Labor, Bureau of Labor Statistics, on September 30 of
37	37	the year preceding the year in which the policy year ends,
38	38	compounded annually.
39	39	SECTION 3. Section 4054.051, Insurance Code, is amended to
40	40	read as follows:
41	41	Sec. 4054.051. LICENSE REQUIRED. Except as provided by
42	42	Subchapter G, a person is required to hold a general life, accident,
43	43	and health license if the person acts as:
44	44	(1) an agent who represents a health maintenance
45	45	organization;
46	46	(2) an industrial life insurance agent for an insurer
47	47	that writes only weekly premium life insurance on a debit basis
48	48	under Chapter 1151;
49	49	(3) an agent who writes life, accident, and health
50	50	insurance for a life insurance company;
51	51	(4) an agent who writes only accident and health
52	52	insurance;
53	53	(5) an agent who writes fixed or variable annuity
54	54	contracts or variable life contracts;
55	55	(6) an agent who writes for a stipulated premium
56	56	company:
57	57	(A) only life insurance in excess of $25,000
58	58	[$15,000] on any one life;
59	59	(B) only accident and health insurance; or
60	60	(C) both kinds of insurance described by
61	61	Paragraphs (A) and (B);
62	62	(7) an agent who writes life, accident, and health
63	63	insurance for any type of authorized life insurance company that is
64	64	domiciled in this state, including a legal reserve life insurance
65	65	company, and who represents the company:
66	66	(A) in a foreign country or territory; and
67	67	(B) on a United States military installation or
68	68	with United States military personnel;
69	69	(8) an agent who writes life, accident, and health
70	70	insurance for a fraternal benefit society except as provided by
71	71	Section 885.352; or
72	72	(9) an agent who writes any other kind of insurance as
73	73	required by the commissioner for the protection of the insurance
74	74	consumers of this state.
75	75	SECTION 4. The heading to Subchapter E, Chapter 4054,
76	76	Insurance Code, is amended to read as follows:
77	77	SUBCHAPTER E. LIFE INSURANCE NOT
78	78	EXCEEDING $25,000 [$15,000]
79	79	SECTION 5. Section 4054.201(a), Insurance Code, is amended
80	80	to read as follows:
81	81	(a) The department shall issue a license to an individual
82	82	applicant to act as an agent who writes only life insurance policies
83	83	in an amount that does not exceed $25,000 [$15,000] on any one life
84	84	on receipt of certification from a stipulated premium company, a
85	85	statewide mutual assessment company, a local mutual aid
86	86	association, or a local mutual burial association, that the
87	87	applicant has:
88	88	(1) completed a course of study and instruction in
89	89	compliance with this subchapter; and
90	90	(2) passed without aid a written examination
91	91	administered by the insurer.
92	92	SECTION 6. Section 4054.206, Insurance Code, is amended to
93	93	read as follows:
94	94	Sec. 4054.206. LIMIT ON AGENT'S AUTHORITY. An insurance
95	95	agent licensed under this subchapter may not write any coverage or
96	96	combination of coverages with an initial guaranteed death benefit
97	97	that exceeds $25,000 [$15,000] on any life.
98	98	SECTION 7. Sections 4054.301(a) and (d), Insurance Code,
99	99	are amended to read as follows:
100	100	(a) Except as provided by Subsection (b), a person is
101	101	required to hold a life agent license if the person does not hold a
102	102	general life, accident, and health license under Subchapter B and
103	103	the person acts as:
104	104	(1) an agent who writes insurance coverage on human
105	105	lives, including endowment benefits and annuities, benefits in the
106	106	event of death or dismemberment by accident, and benefits for
107	107	disability income;
108	108	(2) an industrial life insurance agent for an insurer
109	109	that writes only weekly premium life insurance on a debit basis
110	110	under Chapter 1151;
111	111	(3) an agent who writes fixed or variable annuity
112	112	contracts or variable life contracts;
113	113	(4) an agent who writes for a stipulated premium
114	114	company only life insurance in excess of $25,000 [$15,000] on any
115	115	one life; or
116	116	(5) an agent who writes any other kind of insurance as
117	117	required by the commissioner for the protection of the insurance
118	118	consumers of this state.
119	119	(d) A person who holds a license to write life insurance not
120	120	exceeding $25,000 [$15,000] under Subchapter E and who engages in
121	121	the business of insurance only within the scope of that license is
122	122	not required to hold a life agent license. A person who holds a
123	123	life agent license may write the insurance described by that
124	124	subchapter.
125	125	SECTION 8. This Act applies only to an insurance policy
126	126	delivered, issued for delivery, or renewed on or after January 1,
127	127	2010. A policy delivered, issued for delivery, or renewed before
128	128	January 1, 2010, is governed by the law as it existed immediately
129	129	before the effective date of this Act, and that law is continued in
130	130	effect for that purpose.
131	131	SECTION 9. This Act takes effect September 1, 2009.