| 1 | 1 | | By: Creighton S.B. No. 1285 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | Relating to certain information or assistance provided by life |
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| 7 | 7 | | insurance agents to owners of life insurance policies. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter B, Chapter 541, Insurance Code, is |
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| 10 | 10 | | amended by adding Section 541.062 to read as follows: |
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| 11 | 11 | | Sec. 541.062. INTERFERENCE WITH LIFE INSURANCE AGENT |
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| 12 | 12 | | PROHIBITED. |
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| 13 | 13 | | (a) This section applies with respect to individual life |
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| 14 | 14 | | insurance policies only. |
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| 15 | 15 | | (b) It is against the law and public policy of the State of |
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| 16 | 16 | | Texas for any person or entity in the business of insurance to |
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| 17 | 17 | | directly or indirectly interfere with the ability of a life |
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| 18 | 18 | | insurance agent to: |
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| 19 | 19 | | (1) inform a policy owner about: |
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| 20 | 20 | | (A) the benefit options available under life |
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| 21 | 21 | | insurance policy; |
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| 22 | 22 | | (B) the alternatives to the lapse or surrender of |
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| 23 | 23 | | a life insurance policy; or |
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| 24 | 24 | | (C) a policy owner's rights related to the |
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| 25 | 25 | | disposition of a life insurance policy; |
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| 26 | 26 | | (2) assist a policy owner with securing discounted |
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| 27 | 27 | | policy proceeds under or related to a life insurance policy; or |
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| 28 | 28 | | (3) unless otherwise prohibited by law, act as a life |
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| 29 | 29 | | settlement broker under Chapter 19.1111A for the policy owner. |
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| 30 | 30 | | (c) The remedies under this section do not include: |
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| 31 | 31 | | (1) a private cause of action under Subchapter D, or |
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| 32 | 32 | | (2) a class action under subchapter F. |
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| 33 | 33 | | SECTION 2. This Act takes effect September 1, 2017. |
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