State Codes and Statutes

Statutes > Texas > Insurance-code > Title-7-life-insurance-and-annuities > Chapter-1111-life-and-viatical-settlements-and-accelerated-term-life-insurance-benefits

INSURANCE CODE

TITLE 7. LIFE INSURANCE AND ANNUITIES

SUBTITLE A. LIFE INSURANCE IN GENERAL

CHAPTER 1111. LIFE AND VIATICAL SETTLEMENTS AND ACCELERATED TERM

LIFE INSURANCE BENEFITS

SUBCHAPTER A. LIFE AND VIATICAL SETTLEMENTS

Sec. 1111.001. DEFINITIONS. In this subchapter:

(1) "Life settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who does not have a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

(2) "Person" means an individual, corporation, trust,

partnership, association, or any other legal entity.

(3) "Viatical settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who has a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.002. PURPOSE. The purpose of this subchapter is to:

(1) provide for registration of persons engaged in the business

of life or viatical settlements; and

(2) provide consumer protection for a person who may sell or

otherwise transfer the person's life insurance policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.003. RULES; REGISTRATION AND REGULATION. (a) To

implement this subchapter, the commissioner shall adopt

reasonable rules relating to life settlements and relating to

viatical settlements.

(b) The rules adopted by the commissioner under this section

must include rules governing:

(1) registration of a person engaged in the business of life

settlements;

(2) registration of a person engaged in the business of viatical

settlements;

(3) approval of contract forms;

(4) disclosure requirements;

(5) prohibited practices relating to:

(A) unfair discrimination in the provision of life or viatical

settlements; and

(B) referral fees paid by persons engaged in the business of

life or viatical settlements;

(6) assignment or resale of life insurance policies;

(7) maintenance of appropriate confidentiality of personal and

medical information; and

(8) the responsibility of a registrant to ensure compliance with

this subchapter and rules relating to life or viatical

settlements after the registration is revoked, suspended, or

otherwise lapses.

(c) The commissioner may not adopt a rule establishing a price

or fee for the sale or purchase of a life settlement. This

subsection does not prohibit the commissioner from adopting a

rule relating to an unjust price or fee for the sale or purchase

of a life settlement.

(d) The commissioner may not adopt a rule that regulates the

actions of an investor providing money to a life or viatical

settlement company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.004. ANNUAL FEE FOR REGISTRATION. The commissioner

may adopt rules requiring payment of an annual fee in connection

with registration. The fee may not exceed $250.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.005. DENIAL, SUSPENSION, OR REVOCATION OF

REGISTRATION; ENFORCEMENT. (a) The commissioner may suspend or

revoke a registration or deny an application for registration if

the commissioner determines that the registrant or applicant,

individually or through any officer, director, or shareholder of

the registrant or applicant:

(1) wilfully violated:

(A) this subchapter;

(B) an applicable provision of this code or another insurance

law of this state; or

(C) a rule adopted under a law described by Paragraph (A) or

(B);

(2) intentionally made a material misstatement in the

application for registration;

(3) obtained or attempted to obtain registration by fraud or

misrepresentation;

(4) misappropriated, converted to the registrant's or

applicant's own use, or illegally withheld money belonging to a

party to a life or viatical settlement;

(5) was guilty of fraudulent or dishonest practices;

(6) materially misrepresented the terms of business conducted

under this subchapter or any other provision of this code or

another insurance law of this state;

(7) made or issued, or caused to be made or issued, a statement

materially misrepresenting or making incomplete comparisons

regarding the material terms of any business conducted under this

subchapter; or

(8) was convicted of a felony or was convicted of a misdemeanor

involving moral turpitude or fraud.

(b) An applicant or registrant whose registration has been

denied, suspended, or revoked under this section may not file

another application for registration before the first anniversary

of the effective date of the denial, suspension, or revocation

or, if judicial review of the denial, suspension, or revocation

is sought, the first anniversary of the date of the final court

order or decree affirming the action. The commissioner may deny

an application filed after that period unless the applicant shows

good cause why the denial, suspension, or revocation of the

previous registration should not bar the issuance of a new

registration.

(c) In addition to an action taken against a person under

Subsection (a) or (b), the commissioner may take against the

person any action that the commissioner may take against a person

engaged in the business of insurance who violates a statute or

rule.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.006. APPLICABILITY OF OTHER INSURANCE LAWS. The

following laws apply to a person engaged in the business of life

or viatical settlements:

(1) Chapters 82, 83, 84, 481, 541, and 701;

(2) Sections 31.002, 32.021, 32.023, 32.041, 38.001, 81.004,

86.001, 86.051, 86.052, 201.004, 401.051, 401.054, 401.151(a),

521.003, 521.004, 543.001(c), 801.056, and 862.052;

(3) Subchapter A, Chapter 32;

(4) Subchapter C, Chapter 36;

(5) Subchapter B, Chapter 404; and

(6) Subchapter B, Chapter 491.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2F.006, eff. April 1, 2009.

SUBCHAPTER B. ACCELERATED TERM LIFE INSURANCE BENEFITS

Sec. 1111.051. DEFINITIONS. In this subchapter:

(1) "Accelerated benefit" means a benefit paid to an insured

instead of a portion of a death benefit.

(2) "Death benefit" means a benefit payable to a beneficiary on

the death of an insured.

(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) "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.

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) the insurer has received a written medical opinion,

satisfactory to the insurer, that the insured has:

(A) a terminal illness;

(B) a long-term care illness; or

(C) an illness or physical condition that is likely to cause

permanent disability or premature death, including:

(i) acquired immune deficiency syndrome (AIDS);

(ii) a malignant tumor;

(iii) a condition that requires an organ transplant; or

(iv) a coronary artery disease that results in acute infarction

or requires surgery; and

(2) the amount of the accelerated benefit is deducted from:

(A) the amount of the death benefit payable under the policy or

certificate; and

(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.

Sec. 1111.053. RULES. The commissioner may adopt rules to

implement this subchapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-7-life-insurance-and-annuities > Chapter-1111-life-and-viatical-settlements-and-accelerated-term-life-insurance-benefits

INSURANCE CODE

TITLE 7. LIFE INSURANCE AND ANNUITIES

SUBTITLE A. LIFE INSURANCE IN GENERAL

CHAPTER 1111. LIFE AND VIATICAL SETTLEMENTS AND ACCELERATED TERM

LIFE INSURANCE BENEFITS

SUBCHAPTER A. LIFE AND VIATICAL SETTLEMENTS

Sec. 1111.001. DEFINITIONS. In this subchapter:

(1) "Life settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who does not have a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

(2) "Person" means an individual, corporation, trust,

partnership, association, or any other legal entity.

(3) "Viatical settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who has a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.002. PURPOSE. The purpose of this subchapter is to:

(1) provide for registration of persons engaged in the business

of life or viatical settlements; and

(2) provide consumer protection for a person who may sell or

otherwise transfer the person's life insurance policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.003. RULES; REGISTRATION AND REGULATION. (a) To

implement this subchapter, the commissioner shall adopt

reasonable rules relating to life settlements and relating to

viatical settlements.

(b) The rules adopted by the commissioner under this section

must include rules governing:

(1) registration of a person engaged in the business of life

settlements;

(2) registration of a person engaged in the business of viatical

settlements;

(3) approval of contract forms;

(4) disclosure requirements;

(5) prohibited practices relating to:

(A) unfair discrimination in the provision of life or viatical

settlements; and

(B) referral fees paid by persons engaged in the business of

life or viatical settlements;

(6) assignment or resale of life insurance policies;

(7) maintenance of appropriate confidentiality of personal and

medical information; and

(8) the responsibility of a registrant to ensure compliance with

this subchapter and rules relating to life or viatical

settlements after the registration is revoked, suspended, or

otherwise lapses.

(c) The commissioner may not adopt a rule establishing a price

or fee for the sale or purchase of a life settlement. This

subsection does not prohibit the commissioner from adopting a

rule relating to an unjust price or fee for the sale or purchase

of a life settlement.

(d) The commissioner may not adopt a rule that regulates the

actions of an investor providing money to a life or viatical

settlement company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.004. ANNUAL FEE FOR REGISTRATION. The commissioner

may adopt rules requiring payment of an annual fee in connection

with registration. The fee may not exceed $250.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.005. DENIAL, SUSPENSION, OR REVOCATION OF

REGISTRATION; ENFORCEMENT. (a) The commissioner may suspend or

revoke a registration or deny an application for registration if

the commissioner determines that the registrant or applicant,

individually or through any officer, director, or shareholder of

the registrant or applicant:

(1) wilfully violated:

(A) this subchapter;

(B) an applicable provision of this code or another insurance

law of this state; or

(C) a rule adopted under a law described by Paragraph (A) or

(B);

(2) intentionally made a material misstatement in the

application for registration;

(3) obtained or attempted to obtain registration by fraud or

misrepresentation;

(4) misappropriated, converted to the registrant's or

applicant's own use, or illegally withheld money belonging to a

party to a life or viatical settlement;

(5) was guilty of fraudulent or dishonest practices;

(6) materially misrepresented the terms of business conducted

under this subchapter or any other provision of this code or

another insurance law of this state;

(7) made or issued, or caused to be made or issued, a statement

materially misrepresenting or making incomplete comparisons

regarding the material terms of any business conducted under this

subchapter; or

(8) was convicted of a felony or was convicted of a misdemeanor

involving moral turpitude or fraud.

(b) An applicant or registrant whose registration has been

denied, suspended, or revoked under this section may not file

another application for registration before the first anniversary

of the effective date of the denial, suspension, or revocation

or, if judicial review of the denial, suspension, or revocation

is sought, the first anniversary of the date of the final court

order or decree affirming the action. The commissioner may deny

an application filed after that period unless the applicant shows

good cause why the denial, suspension, or revocation of the

previous registration should not bar the issuance of a new

registration.

(c) In addition to an action taken against a person under

Subsection (a) or (b), the commissioner may take against the

person any action that the commissioner may take against a person

engaged in the business of insurance who violates a statute or

rule.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.006. APPLICABILITY OF OTHER INSURANCE LAWS. The

following laws apply to a person engaged in the business of life

or viatical settlements:

(1) Chapters 82, 83, 84, 481, 541, and 701;

(2) Sections 31.002, 32.021, 32.023, 32.041, 38.001, 81.004,

86.001, 86.051, 86.052, 201.004, 401.051, 401.054, 401.151(a),

521.003, 521.004, 543.001(c), 801.056, and 862.052;

(3) Subchapter A, Chapter 32;

(4) Subchapter C, Chapter 36;

(5) Subchapter B, Chapter 404; and

(6) Subchapter B, Chapter 491.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2F.006, eff. April 1, 2009.

SUBCHAPTER B. ACCELERATED TERM LIFE INSURANCE BENEFITS

Sec. 1111.051. DEFINITIONS. In this subchapter:

(1) "Accelerated benefit" means a benefit paid to an insured

instead of a portion of a death benefit.

(2) "Death benefit" means a benefit payable to a beneficiary on

the death of an insured.

(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) "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.

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) the insurer has received a written medical opinion,

satisfactory to the insurer, that the insured has:

(A) a terminal illness;

(B) a long-term care illness; or

(C) an illness or physical condition that is likely to cause

permanent disability or premature death, including:

(i) acquired immune deficiency syndrome (AIDS);

(ii) a malignant tumor;

(iii) a condition that requires an organ transplant; or

(iv) a coronary artery disease that results in acute infarction

or requires surgery; and

(2) the amount of the accelerated benefit is deducted from:

(A) the amount of the death benefit payable under the policy or

certificate; and

(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.

Sec. 1111.053. RULES. The commissioner may adopt rules to

implement this subchapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-7-life-insurance-and-annuities > Chapter-1111-life-and-viatical-settlements-and-accelerated-term-life-insurance-benefits

INSURANCE CODE

TITLE 7. LIFE INSURANCE AND ANNUITIES

SUBTITLE A. LIFE INSURANCE IN GENERAL

CHAPTER 1111. LIFE AND VIATICAL SETTLEMENTS AND ACCELERATED TERM

LIFE INSURANCE BENEFITS

SUBCHAPTER A. LIFE AND VIATICAL SETTLEMENTS

Sec. 1111.001. DEFINITIONS. In this subchapter:

(1) "Life settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who does not have a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

(2) "Person" means an individual, corporation, trust,

partnership, association, or any other legal entity.

(3) "Viatical settlement" means an agreement that is solicited,

negotiated, offered, entered into, delivered, or issued for

delivery in this state under which a person pays anything of

value that is:

(A) less than the expected death benefit of a policy insuring

the life of an individual who has a catastrophic or

life-threatening illness or condition; and

(B) paid in return for the policy owner's or certificate

holder's assignment, transfer, bequest, devise, or sale of the

death benefit under or ownership of the policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.002. PURPOSE. The purpose of this subchapter is to:

(1) provide for registration of persons engaged in the business

of life or viatical settlements; and

(2) provide consumer protection for a person who may sell or

otherwise transfer the person's life insurance policy.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.003. RULES; REGISTRATION AND REGULATION. (a) To

implement this subchapter, the commissioner shall adopt

reasonable rules relating to life settlements and relating to

viatical settlements.

(b) The rules adopted by the commissioner under this section

must include rules governing:

(1) registration of a person engaged in the business of life

settlements;

(2) registration of a person engaged in the business of viatical

settlements;

(3) approval of contract forms;

(4) disclosure requirements;

(5) prohibited practices relating to:

(A) unfair discrimination in the provision of life or viatical

settlements; and

(B) referral fees paid by persons engaged in the business of

life or viatical settlements;

(6) assignment or resale of life insurance policies;

(7) maintenance of appropriate confidentiality of personal and

medical information; and

(8) the responsibility of a registrant to ensure compliance with

this subchapter and rules relating to life or viatical

settlements after the registration is revoked, suspended, or

otherwise lapses.

(c) The commissioner may not adopt a rule establishing a price

or fee for the sale or purchase of a life settlement. This

subsection does not prohibit the commissioner from adopting a

rule relating to an unjust price or fee for the sale or purchase

of a life settlement.

(d) The commissioner may not adopt a rule that regulates the

actions of an investor providing money to a life or viatical

settlement company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.004. ANNUAL FEE FOR REGISTRATION. The commissioner

may adopt rules requiring payment of an annual fee in connection

with registration. The fee may not exceed $250.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.005. DENIAL, SUSPENSION, OR REVOCATION OF

REGISTRATION; ENFORCEMENT. (a) The commissioner may suspend or

revoke a registration or deny an application for registration if

the commissioner determines that the registrant or applicant,

individually or through any officer, director, or shareholder of

the registrant or applicant:

(1) wilfully violated:

(A) this subchapter;

(B) an applicable provision of this code or another insurance

law of this state; or

(C) a rule adopted under a law described by Paragraph (A) or

(B);

(2) intentionally made a material misstatement in the

application for registration;

(3) obtained or attempted to obtain registration by fraud or

misrepresentation;

(4) misappropriated, converted to the registrant's or

applicant's own use, or illegally withheld money belonging to a

party to a life or viatical settlement;

(5) was guilty of fraudulent or dishonest practices;

(6) materially misrepresented the terms of business conducted

under this subchapter or any other provision of this code or

another insurance law of this state;

(7) made or issued, or caused to be made or issued, a statement

materially misrepresenting or making incomplete comparisons

regarding the material terms of any business conducted under this

subchapter; or

(8) was convicted of a felony or was convicted of a misdemeanor

involving moral turpitude or fraud.

(b) An applicant or registrant whose registration has been

denied, suspended, or revoked under this section may not file

another application for registration before the first anniversary

of the effective date of the denial, suspension, or revocation

or, if judicial review of the denial, suspension, or revocation

is sought, the first anniversary of the date of the final court

order or decree affirming the action. The commissioner may deny

an application filed after that period unless the applicant shows

good cause why the denial, suspension, or revocation of the

previous registration should not bar the issuance of a new

registration.

(c) In addition to an action taken against a person under

Subsection (a) or (b), the commissioner may take against the

person any action that the commissioner may take against a person

engaged in the business of insurance who violates a statute or

rule.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1111.006. APPLICABILITY OF OTHER INSURANCE LAWS. The

following laws apply to a person engaged in the business of life

or viatical settlements:

(1) Chapters 82, 83, 84, 481, 541, and 701;

(2) Sections 31.002, 32.021, 32.023, 32.041, 38.001, 81.004,

86.001, 86.051, 86.052, 201.004, 401.051, 401.054, 401.151(a),

521.003, 521.004, 543.001(c), 801.056, and 862.052;

(3) Subchapter A, Chapter 32;

(4) Subchapter C, Chapter 36;

(5) Subchapter B, Chapter 404; and

(6) Subchapter B, Chapter 491.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2F.006, eff. April 1, 2009.

SUBCHAPTER B. ACCELERATED TERM LIFE INSURANCE BENEFITS

Sec. 1111.051. DEFINITIONS. In this subchapter:

(1) "Accelerated benefit" means a benefit paid to an insured

instead of a portion of a death benefit.

(2) "Death benefit" means a benefit payable to a beneficiary on

the death of an insured.

(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) "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.

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) the insurer has received a written medical opinion,

satisfactory to the insurer, that the insured has:

(A) a terminal illness;

(B) a long-term care illness; or

(C) an illness or physical condition that is likely to cause

permanent disability or premature death, including:

(i) acquired immune deficiency syndrome (AIDS);

(ii) a malignant tumor;

(iii) a condition that requires an organ transplant; or

(iv) a coronary artery disease that results in acute infarction

or requires surgery; and

(2) the amount of the accelerated benefit is deducted from:

(A) the amount of the death benefit payable under the policy or

certificate; and

(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.

Sec. 1111.053. RULES. The commissioner may adopt rules to

implement this subchapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.