H.B. No. 1041 amends the Texas Insurance Code to clarify the insurable interest of certain caregivers for individuals with disabilities. The bill specifies that a person providing care to an individual with a disability, such as those in state-supported living centers or licensed facilities, does not have an insurable interest in the life of that individual unless they are a relative. This change aims to protect individuals with disabilities from potential exploitation in life insurance matters by ensuring that only family members can hold such interests.

Additionally, the bill introduces a definition of "relative," which includes individuals related to the insured within the third degree by consanguinity or affinity, as defined under Texas law. The new provisions will apply to life insurance policies delivered, issued for delivery, or renewed on or after January 1, 2026. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 1103.053 (Insurance Code 1103)
House Committee Report: Insurance Code 1103.053 (Insurance Code 1103)
Engrossed: Insurance Code 1103.053 (Insurance Code 1103)
Senate Committee Report: Insurance Code 1103.053 (Insurance Code 1103)
Enrolled: Insurance Code 1103.053 (Insurance Code 1103)