| 1 | 1 | | 87R10119 TYPED |
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| 2 | 2 | | By: Nichols S.B. No. 773 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to notice of available alternatives to the lapse or |
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| 8 | 8 | | surrender of a life insurance policy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 1101, Insurance Code, is amended by |
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| 11 | 11 | | adding Subchapter G to read as follows: |
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| 12 | 12 | | SUBCHAPTER G. NOTICE REGARDING ALTERNATIVES TO LAPSE OR SURRENDER |
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| 13 | 13 | | Sec. 1101.301. NOTICE OF ALTERNATIVES TO LAPSE OR SURRENDER |
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| 14 | 14 | | OF POLICY. (a) An insurer shall provide to a policy owner who is at |
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| 15 | 15 | | least 60 years of age and who has held the policy for at least two |
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| 16 | 16 | | years a written notice of the existence of potential available |
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| 17 | 17 | | alternatives to the lapse or surrender of the owner's life |
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| 18 | 18 | | insurance policy on the request by the policy owner of: |
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| 19 | 19 | | (1) prior to the termination or complete or partial |
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| 20 | 20 | | surrender of the policy; |
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| 21 | 21 | | (2) on the request by the policy owner of a loan |
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| 22 | 22 | | against or withdrawal of the cash value of the policy; or |
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| 23 | 23 | | (3) on the request by the policy owner of any change to |
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| 24 | 24 | | the terms of the policy, including a change regarding an |
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| 25 | 25 | | accelerated death benefit, a nursing home benefit, a catastrophic |
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| 26 | 26 | | illness benefit, or another living benefit. |
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| 27 | 27 | | (b) The notice must state that the policy holder may consult |
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| 28 | 28 | | with the insurer's agent, the department, or financial advisor. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2021. |
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