Texas 2023 - 88th Regular

Texas House Bill HB1554 Compare Versions

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1	1	88R2654 SCL-D
2	2	By: Raymond H.B. No. 1554
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to disclosure of a beneficiary to a funeral director under
8	8	a life insurance policy.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 1103, Insurance Code, is amended by
11	11	adding Subchapter E to read as follows:
12	12	SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR
13	13	Sec. 1103.201. DEFINITIONS. In this subchapter:
14	14	(1) "Funeral director" has the meaning assigned by
15	15	Section 651.001, Occupations Code.
16	16	(2) "Heir" and "personal representative" have the
17	17	meanings assigned by Chapter 22, Estates Code.
18	18	Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This
19	19	subchapter applies only to a life insurance policy with a death
20	20	benefit in an amount of not more than $15,000 issued in this state
21	21	by:
22	22	(1) a legal reserve life insurance company;
23	23	(2) a mutual assessment life insurance company;
24	24	(3) a stipulated premium life insurance company;
25	25	(4) a burial association; or
26	26	(5) a fraternal benefit society.
27	27	(b) This subchapter applies only to a funeral director who:
28	28	(1) is directing a decedent's funeral in this state;
29	29	(2) is provided reasonably sufficient information by
30	30	an heir, an heir's representative, or the personal representative
31	31	of the decedent that the decedent is or may be an insured under a
32	32	life insurance policy; and
33	33	(3) needs information from the issuer of the life
34	34	insurance policy because an heir, heir's representative, or
35	35	personal representative of the decedent is unaware or unable to
36	36	provide information on:
37	37	(A) whether the decedent was the owner of a life
38	38	insurance policy; or
39	39	(B) the identity of the designated beneficiary
40	40	under the policy.
41	41	Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR.
42	42	(a) A funeral director to whom this subchapter applies may request
43	43	a disclosure in accordance with this section from a life insurer to
44	44	which this subchapter applies if the director has obtained written
45	45	consent from an heir, an heir's representative, or the personal
46	46	representative of the decedent for the director to contact a
47	47	specific life insurer concerning designated beneficiaries in a
48	48	policy insuring the life of the decedent.
49	49	(b) The written consent described by Subsection (a) must
50	50	include:
51	51	(1) the name and address of the heir, heir's
52	52	representative, or personal representative providing consent;
53	53	(2) a brief statement of the facts establishing
54	54	knowledge as to the family and nearest relatives of the decedent;
55	55	(3) a brief statement of facts describing the basis
56	56	for the belief the decedent was or may have been an insured under a
57	57	life insurance policy with a particular life insurer; and
58	58	(4) a brief statement of facts concerning whether the
59	59	decedent was or may have been the owner of the policy.
60	60	(c) A funeral director shall provide a copy of the written
61	61	consent to the life insurer requested to provide information under
62	62	this section.
63	63	Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as
64	64	provided by Subsection (b), a life insurer shall provide a written
65	65	disclosure of the designated beneficiary of a life insurance policy
66	66	owned by the decedent for which a funeral director requests
67	67	information under Section 1103.203. The insurer shall provide the
68	68	disclosure not later than the fifth day after the date the insurer
69	69	receives the request.
70	70	(b) A life insurer may not disclose the designated
71	71	beneficiary of a life insurance policy insuring the life of a
72	72	decedent if the decedent is not the owner of the policy unless the
73	73	life insurer receives the written consent of the owner to provide
74	74	the disclosure. The insurer may advise a funeral director who
75	75	requests information under Section 1103.203 that the decedent is
76	76	not the owner of the policy.
77	77	Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter
78	78	may not be construed to:
79	79	(1) require a life insurer to disclose the owner or
80	80	designated beneficiary of a life insurance policy insuring the life
81	81	of a decedent that is not owned by the decedent without the owner's
82	82	written consent;
83	83	(2) establish a right of the funeral director or
84	84	assignee of the funeral director to benefits under a life insurance
85	85	policy unless the designated beneficiary of the policy has executed
86	86	a written assignment of benefits to the funeral director; or
87	87	(3) establish any determination that benefits are
88	88	payable under the terms of the applicable life insurance policy.
89	89	Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is
90	90	not subject to civil liability or administrative action by making
91	91	an authorized disclosure under this subchapter.
92	92	SECTION 2. This Act takes effect September 1, 2023.