Texas 2021 - 87th Regular

Texas House Bill HB643 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	87R19048 SCL-D
1	2		By: Raymond H.B. No. 643
	3	+	Substitute the following for H.B. No. 643:
	4	+	By: Oliverson C.S.H.B. No. 643
2	5
3	6
4	7		A BILL TO BE ENTITLED
5	8		AN ACT
6	9		relating to disclosure of a beneficiary to a funeral director under
7	10		a life insurance policy.
8	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	12		SECTION 1. Chapter 1103, Insurance Code, is amended by
10	13		adding Subchapter E to read as follows:
11	14		SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR
12	15		Sec. 1103.201. DEFINITIONS. In this subchapter:
13	16		(1) "Funeral director" has the meaning assigned by
14	17		Section 651.001, Occupations Code.
15	18		(2) "Heir" and "personal representative" have the
16	19		meanings assigned by Chapter 22, Estates Code.
17	20		Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This
18	21		subchapter applies only to a life insurance policy with a death
19		-	benefit in an amount of not more than $30,000 issued in this state
	22	+	benefit in an amount of not more than $15,000 issued in this state
20	23		by:
21	24		(1) a legal reserve life insurance company;
22	25		(2) a mutual assessment life insurance company;
23	26		(3) a stipulated premium life insurance company;
24	27		(4) a burial association; or
25	28		(5) a fraternal benefit society.
26	29		(b) This subchapter applies only to a funeral director who:
27	30		(1) is directing a decedent's funeral in this state;
28	31		(2) is provided reasonably sufficient information by
29	32		an heir, an heir's representative, or the personal representative
30	33		of the decedent that the decedent is or may be an insured under a
31	34		life insurance policy; and
32	35		(3) needs information from the issuer of the life
33	36		insurance policy because an heir, heir's representative, or
34	37		personal representative of the decedent is unaware or unable to
35	38		provide information on:
36	39		(A) whether the decedent was the owner of a life
37	40		insurance policy; or
38	41		(B) the identity of the designated beneficiary
39	42		under the policy.
40	43		Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR.
41	44		(a) A funeral director to whom this subchapter applies may request
42	45		a disclosure in accordance with this section from a life insurer to
43	46		which this subchapter applies if the director has obtained written
44	47		consent from an heir, an heir's representative, or the personal
45	48		representative of the decedent for the director to contact a
46	49		specific life insurer concerning designated beneficiaries in a
47	50		policy insuring the life of the decedent.
48	51		(b) The written consent described by Subsection (a) must
49	52		include:
50	53		(1) the name and address of the heir, heir's
51	54		representative, or personal representative providing consent;
52	55		(2) a brief statement of the facts establishing
53	56		knowledge as to the family and nearest relatives of the decedent;
54	57		(3) a brief statement of facts describing the basis
55	58		for the belief the decedent was or may have been an insured under a
56	59		life insurance policy with a particular life insurer; and
57	60		(4) a brief statement of facts concerning whether the
58	61		decedent was or may have been the owner of the policy.
59	62		(c) A funeral director shall provide a copy of the written
60	63		consent to the life insurer requested to provide information under
61	64		this section.
62	65		Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as
63	66		provided by Subsection (b), a life insurer shall provide a written
64	67		disclosure of the designated beneficiary of a life insurance policy
65	68		owned by the decedent for which a funeral director requests
66	69		information under Section 1103.203. The insurer shall provide the
67	70		disclosure not later than the fifth day after the date the insurer
68	71		receives the request.
69	72		(b) A life insurer may not disclose the designated
70	73		beneficiary of a life insurance policy insuring the life of a
71	74		decedent if the decedent is not the owner of the policy unless the
72	75		life insurer receives the written consent of the owner to provide
73	76		the disclosure. The insurer may advise a funeral director who
74	77		requests information under Section 1103.203 that the decedent is
75	78		not the owner of the policy.
76	79		Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter
77	80		may not be construed to:
78	81		(1) require a life insurer to disclose the owner or
79	82		designated beneficiary of a life insurance policy insuring the life
80	83		of a decedent that is not owned by the decedent without the owner's
81	84		written consent;
82	85		(2) establish a right of the funeral director or
83	86		assignee of the funeral director to benefits under a life insurance
84	87		policy unless the designated beneficiary of the policy has executed
85	88		a written assignment of benefits to the funeral director; or
86	89		(3) establish any determination that benefits are
87	90		payable under the terms of the applicable life insurance policy.
88	91		Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is
89	92		not subject to civil liability or administrative action by making
90	93		an authorized disclosure under this subchapter.
91	94		SECTION 2. This Act takes effect September 1, 2021.