Table of Contents
For this weekly feature, the Texas Council for Developmental Disabilities (TCDD) profiles a noteworthy bill going through the legislative process. The bill may relate directly to TCDD’s Public Policy Priorities or another disability-related issue.
Bill of the Week: HB 1041
House Bill (HB) 1041, relating to the insurable interest of people who provide care to individuals with disabilities in long-term care facilities. HB 1041 was authored by Rep. Chris Turner from Arlington, District 101.
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We’ve created a Bill of the Week one-pager (PDF) for HB 1041. This is a simplified explanation of the bill that you can share with your representative and personal network.
Background
Under Section 1103.056 of the Texas Insurance Code, an adult can allow another person to purchase a life insurance policy on the adult’s own life. The code also allows an adult to designate another person or entity as a beneficiary of their life insurance policy. Though Texas Health and Human Services Commission regulations advise against conflicts of interest, they do not explicitly prohibit employees of long-term care facilities from being named beneficiaries of life insurance policies for individuals under their care. There is a concern that this could improperly influence care decisions and leave vulnerable Texans at risk of financial exploitation.
A notable case highlighting this issue involved Leroy Anderson Jr., a 49-year-old Texas resident with intellectual disabilities and other diagnoses who lived in a state-funded group home. In 2018, he fell into a diabetic coma and passed away. Following his passing, it was revealed that Anderson’s life insurance policy had been changed to make the owner of the group home, rather than Anderson’s family member, the designee for the policy’s death benefit.
Anderson’s story was detailed in WFAA-TV’s investigative series “Disabled in Danger.” His situation brought attention to the conflict of interest that happens when caregivers, who are responsible for the well-being of individuals with disabilities, are also financially positioned to benefit from their passing. While life insurance policies are intended to provide financial security for beneficiaries, there are concerns this could create inappropriate incentives that might compromise the quality of care.
What does the bill do?
HB 1041 would amend the Texas Insurance Code to state that a person providing care to an individual with a disability, including an intellectual disability, at a long-term care facility cannot have an insurable interest in the life of an individual unless they are relatives.
The types of facilities referenced in the bill are:
- state-supported living centers,
- assisted living facilities,
- intermediate care facilities, and
- group homes.
The bill defines “relative” as an individual related to the insured within the third degree. This is identified in existing law as a person’s:
- parent or child (relatives in the first degree);
- brother, sister, grandparent, or grandchild (relatives in the second degree); and
- great-grandparent, great-grandchild, aunt, uncle, nephew, or niece (relatives in the third degree).
If passed, HB 1041 would take effect on Sept. 1, 2025. It would apply to insurance policies delivered, issued for delivery, or renewed on or after Jan. 1, 2026.
“Leroy Anderson’s story highlighted an unfathomable conflict of interest — caregivers taking out life insurance policies on individuals with disabilities and profiting from their deaths. HB 1041 protects our most vulnerable Texans by ensuring that only those with legitimate insurable interests can hold these policies.”
Rep. Chris Turner, HB 1041 author
Where is the bill in the process?
On March 18, 2025, HB 1041 received a public hearing before the House Committee on Human Services. You can watch the discussion on it here, beginning at the 0:00:40 mark.
On March 25, the bill was favorably reported. It now heads to the Calendars Committee, where it will await scheduling for consideration by the full Texas House.
Who supports the bill and why?
The following comments were provided at the March 18 hearing on HB 1041:
- Parent: Don Moore, a parent whose family experience was detailed in another WFAA-TV “Disabled in Danger” report, testified in support of HB 1041. He described the facts of the Anderson case and highlighted the need for reform. Calling the designation of facility staff as life insurance beneficiaries “highly improper,” Moore stressed the importance of closing this conflict-of-interest loophole to prevent financial exploitation. “This experience is taking advantage of a special relationship where you have knowledge of the person’s deficits and vulnerabilities,” he stated. “It’s definitely unethical and crosses the line by any standard in client services.”
- Parent: Clay Boatright, the parent of two daughters with severe autism and IDD who live in a group home, submitted public comments voicing support for the bill. He questioned why such a law does not already exist, stating: “Pure common sense dictates that caregivers should not be able to take out life insurance policies, or be named beneficiaries in such policies, on those in their care.”
The following groups also registered their support for the bill: AARP Texas, Coalition of Texans with Disabilities, Disability Rights Texas, Evergreen Life Services, NAMI Texas, Parents and Allies for Remarkable Texans, Texas Assisted Living Association, and Texas Council of Community Centers.
Who opposes the bill and why?
There was no registered opposition to the bill.
How much will the bill cost?
The Legislative Budget Board found that HB 1041 would not impact the state budget in a significant way.
Is there a Senate companion to the bill?
There is no Senate companion to HB 1041.
Stay Informed
For the latest information about where HB 1041 is in the process, follow the bill on the Texas Legislature Online. To receive future legislative updates from TCDD, follow us on Facebook, X, Instagram, and LinkedIn.
Bill of the Week Updates
Here is an update on previous TCDD Bills of the Week for the 89th legislative session.
HB 1188, which would require school districts to refer students with IDD to their local IDD authority, has been scheduled for an April 8 hearing before the House Committee on Public Education.
Senate Bill (SB) 568 has been placed on the Senate’s Intent calendar for April 7, which means it could be considered on that date. The bill would restructure funding for special education programs in public schools.
