HB 1041

relating to the insurable interest of certain persons providing
care to individuals with disabilities in the life of those
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 1103.053, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
(a)  Except as provided by Subsection (b) or (c), a
beneficiary or owner of a life insurance policy who is designated in
accordance with this subchapter or an entity to which a life
insurance policy or an interest, benefit, right, or title in a life
insurance policy is transferred or assigned in accordance with this
subchapter has, at all times after the designation, an insurable
interest in the life of the individual who is insured under the
(c)  Notwithstanding Section 1103.051, this subsection
applies to a life insurance policy issued under Chapter 1101.  A
person providing care to an individual with a disability, including
an intellectual disability, at a state supported living center, as
defined by Section 531.002, Health and Safety Code, an assisted
living facility licensed under Chapter 247, Health and Safety Code,
an intermediate care facility licensed under Chapter 252, Health
and Safety Code, or a group home, as defined by Section 591.003,
Health and Safety Code, does not directly or indirectly have an
insurable interest in the life of an individual unless the person is
(d)  In this section, "relative" means an individual who is
related to the insured within the third degree by consanguinity or
affinity as determined under Chapter 573, Government Code.
SECTION 2.  Section 1103.053(c), Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2026.
SECTION 3.  This Act takes effect September 1, 2025.