Relating to a limitation on life insurance proceeds for terroristic acts.
Impact
The implications of HB2104 are significant, as they introduce a new legal framework for handling life insurance claims linked to violent acts labeled as terrorism. By limiting the payout in such instances, the legislation could also impact policyholder behavior and the insurance industry's assessment of risk. Furthermore, this bill seeks to ensure that life insurance is not financially exploited in circumstances that involve maleficent actions, thus reflecting a shift towards enhancing public safety and accountability.
Summary
House Bill 2104 addresses the limitations placed on life insurance proceeds in cases where the insured person's death results from acts defined as terroristic in nature. The bill introduces a new provision under the Texas Insurance Code, specifically Section 1101.014, which allows insurance policies to limit the death benefits to the amount of premiums paid if the insured's conduct involves violence intended to instill fear in the public or disrupt lawful activities. The bill effectively takes a strong stance on the intersection of insurance and acts of terrorism.
Contention
Notable points of contention surrounding HB2104 primarily concern the ethical implications and fairness of limiting insurance payouts in accordance with the conduct of the insured. Critics argue that while the bill aims to mitigate potential abuse of insurance benefits, it may unintentionally penalize beneficiaries who are innocent parties, thereby creating potential hardships for families affected by violence. Furthermore, there are concerns about how broadly the terms defining 'terroristic acts' are interpreted and applied, which could lead to inconsistency in claims processing and payouts.
Relating to limitations on the use of workers' compensation insurance experience modifier values in soliciting and awarding public construction contracts.