| 3 | 5 | | |
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| 4 | 6 | | |
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| 5 | 7 | | A BILL TO BE ENTITLED |
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| 6 | 8 | | AN ACT |
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| 7 | 9 | | relating to the insurable interest of certain persons providing |
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| 8 | 10 | | care to individuals with disabilities in the life of those |
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| 9 | 11 | | individuals. |
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| 10 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 13 | | SECTION 1. Section 1103.053, Insurance Code, is amended by |
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| 12 | 14 | | amending Subsection (a) and adding Subsections (c) and (d) to read |
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| 13 | 15 | | as follows: |
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| 14 | 16 | | (a) Except as provided by Subsection (b) or (c), a |
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| 15 | 17 | | beneficiary or owner of a life insurance policy who is designated in |
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| 16 | 18 | | accordance with this subchapter or an entity to which a life |
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| 17 | 19 | | insurance policy or an interest, benefit, right, or title in a life |
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| 18 | 20 | | insurance policy is transferred or assigned in accordance with this |
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| 19 | 21 | | subchapter has, at all times after the designation, an insurable |
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| 20 | 22 | | interest in the life of the individual who is insured under the |
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| 21 | 23 | | policy. |
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| 22 | 24 | | (c) Notwithstanding Section 1103.051, this subsection |
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| 23 | 25 | | applies to a life insurance policy issued under Chapter 1101. A |
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| 24 | 26 | | person providing care to an individual with a disability, including |
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| 25 | 27 | | an intellectual disability, at a state supported living center, as |
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| 26 | 28 | | defined by Section 531.002, Health and Safety Code, an assisted |
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| 27 | 29 | | living facility licensed under Chapter 247, Health and Safety Code, |
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| 28 | 30 | | an intermediate care facility licensed under Chapter 252, Health |
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| 29 | 31 | | and Safety Code, or a group home, as defined by Section 591.003, |
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| 30 | 32 | | Health and Safety Code, does not directly or indirectly have an |
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| 31 | 33 | | insurable interest in the life of an individual unless the person is |
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| 32 | 34 | | a relative of the individual. |
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| 33 | 35 | | (d) In this section, "relative" means an individual who is |
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| 34 | 36 | | related to the insured within the third degree by consanguinity or |
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| 35 | 37 | | affinity as determined under Chapter 573, Government Code. |
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| 36 | 38 | | SECTION 2. Section 1103.053(c), Insurance Code, as added by |
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| 37 | 39 | | this Act, applies only to an insurance policy delivered, issued for |
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| 38 | 40 | | delivery, or renewed on or after January 1, 2026. |
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| 39 | 41 | | SECTION 3. This Act takes effect September 1, 2025. |
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