88R1155 MEW-D
By: Guerra H.B. No. 1498
A BILL TO BE ENTITLED
AN ACT
relating to disclosure of an automatic premium loan provision in 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. REQUIRED DISCLOSURES AND NOTICES
Sec. 1101.301. DISCLOSURE OF AUTOMATIC PREMIUM LOAN
PROVISION. Before issuing a life insurance policy that contains an
automatic premium loan provision, an insurer shall:
(1) provide a written notice disclosing the automatic
premium loan provision that is:
(A) printed in at least 16-point font on a
separate page of the application or enrollment form for the policy;
and
(B) signed by the applicant separately from the
rest of the application or enrollment form; and
(2) read the notice described by Subdivision (1) aloud
to the applicant.
SECTION 2. Subchapter G, Chapter 1101, Insurance Code, as
added by this Act, applies only to an insurance policy delivered,
issued for delivery, or renewed on or after January 1, 2024. A
policy delivered, issued for delivery, or renewed before January 1,
2024, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2023.