82R10265 RWG-F
By: Veasey H.B. No. 2532
A BILL TO BE ENTITLED
AN ACT
relating to the interest of a governmental entity in a life
insurance policy insuring the life of an employee or retired
employee of the governmental entity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 1103, Insurance Code, is
amended by adding Section 1103.006 to read as follows:
Sec. 1103.006. LOCAL GOVERNMENT OR STATE AGENCY AS
BENEFICIARY. A local government or state agency, as defined by
Section 2256.002, Government Code, or an assignee or designee of a
local government or state agency may be designated as a beneficiary
in a policy that insures the life of an employee or retired employee
of the local government or state agency or an individual who was an
employee of a local government or state agency at the time the life
insurance policy was issued but subsequently ceased employment for
any reason.
SECTION 2. Subchapter A, Chapter 2256, Government Code, is
amended by adding Section 2256.0165 to read as follows:
Sec. 2256.0165. AUTHORIZED INVESTMENTS: GOVERNMENTAL
EMPLOYEE LIFE INSURANCE POLICIES. A life insurance policy that
insures the life of an employee or retired employee of a local
government or state agency, or an individual who was an employee of
a local government or state agency at the time the life insurance
policy was issued but subsequently ceased employment for any
reason, and designates the local government or state agency or an
assignee or designee of the local government or state agency as a
beneficiary, is an authorized investment of the local government or
state agency under this subchapter if:
(1) the life insurance policy allows the employee or
retired employee to designate a beneficiary for a portion of the
policy; and
(2) the local government or state agency allows the
employee or retired employee to decline coverage under the policy.
SECTION 3. This Act takes effect September 1, 2011.