Relating to the insurable interest of certain persons providing care to individuals with disabilities in the life of those individuals.
Impact
The passage of HB 1010 would significantly amend existing state law governing life insurance and caregiving practices. It targets the loophole currently allowing non-related caregivers to secure life insurance policies on individuals with disabilities, thereby enhancing protection for these vulnerable individuals. By defining 'relative' and clarifying the insurable interest, the bill ensures that only family members have such authority, reducing the risk of misuse of life insurance as a financial tool by caregivers who may not have the individual’s best interests at heart.
Summary
House Bill 1010, introduced by Representative Turner, addresses the insurable interest related to life insurance policies that caregivers can take out on individuals with intellectual or developmental disabilities. The bill stipulates that caregivers do not possess an insurable interest in the life of the person they are caring for unless they are related by blood or marriage within the third degree. This legislation aims to protect vulnerable individuals in state-supported living facilities, assisted living facilities, and similar venues from potential exploitation associated with life insurance policies.
Sentiment
The sentiment surrounding HB 1010 has been largely positive, receiving unanimous support during voting, indicating a legislative consensus regarding its importance. Supporters argue that it addresses past oversights and provides much-needed safeguards for individuals who may be at risk due to inadequate regulations surrounding insurable interest in the caregiving context. Nevertheless, the bill also faced some discussion regarding its necessity, as some may consider it a constraint on caregivers' rights.
Contention
Notably, some contention arose around the interpretation of what constitutes a 'relative,' especially concerning the nuances of familial relationships and potential challenges in enforcement. While the bill's intention is to curb unethical practices, discussions hinted that there could be unintended consequences for care arrangements, especially in cases where caregivers form close relationships with individuals over time. Legislative debates likely underscored the balance between protecting vulnerable populations and ensuring that the care ecosystem remains functional and supportive.
Texas Constitutional Statutes Affected
Health And Safety Code
Chapter 531. Provisions Generally Applicable To Mental Health And Intellectual Disability Services
Section: 002
Section: 002
Chapter 247. Assisted Living Facilities
Section: New Section
Section: New Section
Chapter 252. Intermediate Care Facilities For Individuals With An Intellectual Disability
Section: New Section
Section: New Section
Chapter 591. General Provisions
Section: 003
Section: 003
Government Code
Chapter 573. Degrees Of Relationship; Nepotism Prohibitions
Relating to the protection and care of individuals with mental retardation and to certain legal protections for individuals with disabilities; providing criminal penalties.