SUBCHAPTER B. ACCELERATED TERM LIFE INSURANCE BENEFITS

  1. Sec. 1111.051. DEFINITIONS. In this subchapter:
    1. (1) "Accelerated benefit" means a benefit paid to an insured instead of a portion of a death benefit.
    2. (2) "Death benefit" means a benefit payable to a beneficiary on the death of an insured.
    3. (3) "Long-term care illness" means an illness or physical condition that results in the inability to perform the activities of daily life or the substantial and material duties of any occupation.
    4. (4) "Terminal illness" means an illness or physical condition, including a physical injury, that can reasonably be expected to result in death within not more than two years.
    Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
  1. Sec. 1111.052. AUTHORITY TO PAY ACCELERATED TERM LIFE BENEFITS. An insurer may pay an accelerated benefit under an individual or group term life insurance policy or certificate if:
    1. (1) the insurer has received a written medical opinion, satisfactory to the insurer, that the insured has:
      1. (A) a terminal illness;
      2. (B) a long-term care illness; or
      3. (C) an illness or physical condition that is likely to cause permanent disability or premature death, including:
        1. (i) acquired immune deficiency syndrome (AIDS);
        2. (ii) a malignant tumor;
        3. (iii) a condition that requires an organ transplant; or
        4. (iv) a coronary artery disease that results in acute infarction or requires surgery; and
    2. (2) the amount of the accelerated benefit is deducted from:
      1. (A) the amount of the death benefit payable under the policy or certificate; and
      2. (B) any amount the insured would otherwise be entitled to convert to an individual contract.
    Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.302, eff. Sept. 1, 2003.
  1. Sec. 1111.053. RULES. The commissioner may adopt rules to implement this subchapter.
  2. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.

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