Bill Text: TX HB1498 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to disclosure of an automatic premium loan provision in a life insurance policy.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2023-05-04 - Committee report sent to Calendars [HB1498 Detail]
Download: Texas-2023-HB1498-Comm_Sub.html
| 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 | ||
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| 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. | ||
