Texas 2021 - 87th Regular

Texas House Bill HB1932

Caption

Relating to notice of available alternatives to the lapse or surrender of a life insurance policy.

Impact

The introduction of HB 1932 is significant as it amends Chapter 1101 of the Texas Insurance Code by adding a new provision focused on transparency and consumer rights in insurance transactions. Insurers are obligated to inform policyholders who have held their life insurance for at least two years about potential alternatives to surrendering their policies. This change is expected to empower seniors to make better financial decisions, potentially preventing them from losing valuable insurance benefits unnecessarily.

Summary

House Bill 1932 aims to enhance consumer protection for life insurance policyholders, specifically targeting individuals aged 60 and over. The bill mandates that insurers provide written notices detailing available alternatives to lapse or surrender of a life insurance policy. This requirement is set to take place before the termination or alteration of the policy, ensuring that senior policyholders are aware of their options and can make informed choices regarding their financial assets.

Sentiment

The sentiment surrounding HB 1932 appears to be predominantly positive, with support from various consumer advocacy groups and legislators concerned with the financial wellbeing of older adults. The requirement for insurers to provide clear information is seen as a proactive step towards safeguarding the interests of seniors, who might be vulnerable to making hasty decisions regarding their life insurance policies. This sentiment indicates a consensus on the importance of informed consumer choices in the insurance industry.

Contention

Despite the overall positive reception, there may be some points of contention regarding the implementation of this bill. Insurers might raise concerns about the administrative burden associated with providing additional notices. However, supporters argue that the benefits of improving transparency and protecting consumers far outweigh any inconveniences that insurance companies might face in compliance. The effectiveness of these notifications in truly informing policyholders and affecting their decisions will also be a critical point of observation post-enactment.

Companion Bills

TX SB773

Same As Relating to notice of available alternatives to the lapse or surrender of a life insurance policy.

Previously Filed As

TX HB3273

Relating to public notice of the availability on the Internet of property-tax-related information.

TX HB1554

Relating to disclosure of a beneficiary to a funeral director under a life insurance policy.

TX HB847

Relating to the storage of firearms surrendered by a person subject to a magistrate's order for emergency protection or protective order as a result of family violence, sexual assault or abuse, stalking, or trafficking of persons.

TX HB2257

Relating to notice of certain provisions in insurance policies issued by surplus lines insurers.

TX HB60

Relating to requiring a person convicted of an offense involving family violence or a person who is the subject of a protective order to surrender firearms owned by the person; authorizing a fee.

TX HB1479

Relating to requiring a person convicted of an offense involving family violence or a person who is the subject of a protective order to surrender firearms owned by the person; authorizing a fee.

TX HB1498

Relating to disclosure of an automatic premium loan provision in a life insurance policy.

TX HB1900

Relating to notice of cancellation or nonrenewal of a property and casualty insurance policy.

TX HB1861

Relating to notice of nonrenewal of a property and casualty insurance policy.

TX HB2218

Relating to procedures for the issuance of a personal identification certificate to certain persons 70 years of age or older whose driver's license is surrendered.

Similar Bills

No similar bills found.