87R13508 JES-D
By: Thompson of Harris, Bailes H.B. No. 1932
A BILL TO BE ENTITLED
AN ACT
relating to notice of available alternatives to the lapse or
surrender of a life insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1101, Insurance Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. NOTICE REGARDING ALTERNATIVES TO LAPSE OR SURRENDER
Sec. 1101.301. NOTICE OF ALTERNATIVES TO LAPSE OR SURRENDER
OF POLICY. (a) An insurer shall provide to a policy owner who is at
least 60 years of age and who has held the policy for at least two
years a written notice of the existence of potential available
alternatives to the lapse or surrender of the owner's life
insurance policy:
(1) before the termination or the complete or partial
surrender of the policy; and
(2) on the request by the policy owner of:
(A) a loan against or withdrawal of the cash
value of the policy; or
(B) any change to the terms of the policy,
including a change regarding an accelerated death benefit, a
nursing home benefit, a catastrophic illness benefit, or another
living benefit.
(b) The notice provided under Subsection (a) must state that
the policy owner may consult with the insurer's agent, the
department, or a financial advisor regarding the potential
available alternatives to the lapse or surrender of the owner's
life insurance policy.
SECTION 2. This Act takes effect September 1, 2021.