| 1 | 1 | | 88R23957 MEW-D |
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| 2 | 2 | | By: Guerra, Oliverson, Perez H.B. No. 1498 |
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| 3 | 3 | | Substitute the following for H.B. No. 1498: |
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| 4 | 4 | | By: Oliverson C.S.H.B. No. 1498 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to disclosure of an automatic premium loan provision in a |
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| 10 | 10 | | life insurance policy. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 1101, Insurance Code, is amended by |
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| 13 | 13 | | adding Subchapter G to read as follows: |
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| 14 | 14 | | SUBCHAPTER G. REQUIRED DISCLOSURES AND NOTICES |
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| 15 | 15 | | Sec. 1101.301. DISCLOSURE OF AUTOMATIC PREMIUM LOAN |
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| 16 | 16 | | PROVISION. (a) Before issuing a life insurance policy that |
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| 17 | 17 | | contains an automatic premium loan provision, an insurer shall: |
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| 18 | 18 | | (1) provide a written notice disclosing the automatic |
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| 19 | 19 | | premium loan provision that: |
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| 20 | 20 | | (A) is printed in at least 16-point font on a |
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| 21 | 21 | | separate page of the application or enrollment form for the policy; |
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| 22 | 22 | | (B) includes an affirmation that the insurer read |
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| 23 | 23 | | the notice aloud as required by Subdivision (2); and |
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| 24 | 24 | | (C) is signed by the applicant separately from |
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| 25 | 25 | | the rest of the application or enrollment form; and |
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| 26 | 26 | | (2) read the notice described by Subdivision (1) aloud |
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| 27 | 27 | | to the applicant. |
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| 28 | 28 | | (b) If any related policy document is in a language other |
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| 29 | 29 | | than English, notice under Subsection (a) must be provided and read |
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| 30 | 30 | | in that language in addition to English. |
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| 31 | 31 | | (c) The commissioner may adopt rules as necessary to |
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| 32 | 32 | | implement this section, including rules establishing what |
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| 33 | 33 | | satisfies the oral notice requirement under Subsection (a)(2). |
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| 34 | 34 | | SECTION 2. Subchapter G, Chapter 1101, Insurance Code, as |
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| 35 | 35 | | added by this Act, applies only to an insurance policy delivered or |
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| 36 | 36 | | issued for delivery on or after January 1, 2024. A policy delivered |
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| 37 | 37 | | or issued for delivery before January 1, 2024, is governed by the |
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| 38 | 38 | | law as it existed immediately before the effective date of this Act, |
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| 39 | 39 | | and that law is continued in effect for that purpose. |
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| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2023. |
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