Texas 2025 - 89th Regular

Texas Senate Bill SB2250 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R181 SCL-D
2	2	By: Kolkhorst S.B. No. 2250
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to disclosure of a beneficiary to a funeral director under
10	10	a life insurance policy.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 1103, Insurance Code, is amended by
13	13	adding Subchapter E to read as follows:
14	14	SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR
15	15	Sec. 1103.201. DEFINITIONS. In this subchapter:
16	16	(1) "Funeral director" has the meaning assigned by
17	17	Section 651.001, Occupations Code.
18	18	(2) "Heir" and "personal representative" have the
19	19	meanings assigned by Chapter 22, Estates Code.
20	20	Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This
21	21	subchapter applies only to a life insurance policy with a death
22	22	benefit in an amount of not more than $15,000 issued in this state
23	23	by:
24	24	(1) a legal reserve life insurance company;
25	25	(2) a mutual assessment life insurance company;
26	26	(3) a stipulated premium life insurance company;
27	27	(4) a burial association; or
28	28	(5) a fraternal benefit society.
29	29	(b) This subchapter applies only to a funeral director who:
30	30	(1) is directing a decedent's funeral in this state;
31	31	(2) is provided reasonably sufficient information by
32	32	an heir, an heir's representative, or the personal representative
33	33	of the decedent that the decedent is or may be an insured under a
34	34	life insurance policy; and
35	35	(3) needs information from the issuer of the life
36	36	insurance policy because an heir, heir's representative, or
37	37	personal representative of the decedent is unaware or unable to
38	38	provide information on:
39	39	(A) whether the decedent was the owner of a life
40	40	insurance policy; or
41	41	(B) the identity of the designated beneficiary
42	42	under the policy.
43	43	Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR.
44	44	(a) A funeral director to whom this subchapter applies may request
45	45	a disclosure in accordance with this section from a life insurer to
46	46	which this subchapter applies if the director has obtained written
47	47	consent from an heir, an heir's representative, or the personal
48	48	representative of the decedent for the director to contact a
49	49	specific life insurer concerning designated beneficiaries in a
50	50	policy insuring the life of the decedent.
51	51	(b) The written consent described by Subsection (a) must
52	52	include:
53	53	(1) the name and address of the heir, heir's
54	54	representative, or personal representative providing consent;
55	55	(2) a brief statement of the facts establishing
56	56	knowledge as to the family and nearest relatives of the decedent;
57	57	(3) a brief statement of facts describing the basis
58	58	for the belief the decedent was or may have been an insured under a
59	59	life insurance policy with a particular life insurer; and
60	60	(4) a brief statement of facts concerning whether the
61	61	decedent was or may have been the owner of the policy.
62	62	(c) A funeral director shall provide a copy of the written
63	63	consent to the life insurer requested to provide information under
64	64	this section.
65	65	Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as
66	66	provided by Subsection (b), a life insurer shall provide a written
67	67	disclosure of the designated beneficiary of a life insurance policy
68	68	owned by the decedent for which a funeral director requests
69	69	information under Section 1103.203. The insurer shall provide the
70	70	disclosure not later than the fifth day after the date the insurer
71	71	receives the request.
72	72	(b) A life insurer may not disclose the designated
73	73	beneficiary of a life insurance policy insuring the life of a
74	74	decedent if the decedent is not the owner of the policy unless the
75	75	life insurer receives the written consent of the owner to provide
76	76	the disclosure. The insurer may advise a funeral director who
77	77	requests information under Section 1103.203 that the decedent is
78	78	not the owner of the policy.
79	79	Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter
80	80	may not be construed to:
81	81	(1) require a life insurer to disclose the owner or
82	82	designated beneficiary of a life insurance policy insuring the life
83	83	of a decedent that is not owned by the decedent without the owner's
84	84	written consent;
85	85	(2) establish a right of the funeral director or
86	86	assignee of the funeral director to benefits under a life insurance
87	87	policy unless the designated beneficiary of the policy has executed
88	88	a written assignment of benefits to the funeral director; or
89	89	(3) establish any determination that benefits are
90	90	payable under the terms of the applicable life insurance policy.
91	91	Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is
92	92	not subject to civil liability or administrative action by making
93	93	an authorized disclosure under this subchapter.
94	94	SECTION 2. This Act takes effect September 1, 2025.