By: Hegar S.B. No. 579
(In the Senate - Filed February 9, 2011; February 17, 2011,
read first time and referred to Committee on Business and Commerce;
March 23, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; March 23, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 579 By: Estes
A BILL TO BE ENTITLED
AN ACT
relating to the total benefit amount under a prepaid funeral
contract.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4054.157, Insurance Code, is amended to
read as follows:
Sec. 4054.157. LIMIT ON AGENT'S AUTHORITY. Except as
provided by Section 154.2021, Finance Code, a [A] funeral
prearrangement life insurance agent licensed under this subchapter
may not write any coverage or combination of coverages with an
initial guaranteed death benefit on any life that exceeds the total
cost of the prepaid funeral benefits purchased under the prepaid
funeral contract [$15,000 on any life].
SECTION 2. The change in law made by this Act applies to a
prepaid funeral contract that is formed on or after the effective
date of this Act. A contract that is formed before the effective
date of this Act is covered by the law in effect when the contract
was formed, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2011.
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