88R23957 MEW-D
By: Guerra, Oliverson, Perez H.B. No. 1498
Substitute the following for H.B. No. 1498:
By: Oliverson C.S.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. (a) 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:
(A) is printed in at least 16-point font on a
separate page of the application or enrollment form for the policy;
(B) includes an affirmation that the insurer read
the notice aloud as required by Subdivision (2); and
(C) is 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.
(b) If any related policy document is in a language other
than English, notice under Subsection (a) must be provided and read
in that language in addition to English.
(c) The commissioner may adopt rules as necessary to
implement this section, including rules establishing what
satisfies the oral notice requirement under Subsection (a)(2).
SECTION 2. Subchapter G, Chapter 1101, Insurance Code, as
added by this Act, applies only to an insurance policy delivered or
issued for delivery on or after January 1, 2024. A policy delivered
or issued for delivery 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.