TO ALL TO WHOM THESE PRESENTS SHALL COME:

Pursuant to Article IV, Section 14 of the Texas Constitution, I, Rick Perry, Governor of Texas, do hereby disapprove of and veto House Bill No. 1293 of the 81st Texas Legislature, Regular Session, due to the following objections:

House Bill No. 1293 creates specific disclosure requirements and consumer education standards relating to the sale and marketing of life insurance and annuities. Although the bill establishes standards of transparency and improvements that are important, I believe it will do more harm than good.

This legislation designates any violation of these standards as an unfair or deceptive act or practice, which would expose agents and insurers to private claims for damages, attorney fees and costs for any such violation. Because the Texas Insurance Code already addresses suitable remedies for such offenses, I am opposed to this bill, which creates greater opportunities for frivolous litigation throughout the state.

With this veto message, I am directing the Texas Department of Insurance to implement the beneficial provisions of this bill that are within its rulemaking authority.

IN TESTIMONY WHEREOF, I have signed my name officially and caused the Seal of the State to be affixed hereto at Austin, this the 19th day of June, 2009.

RICK PERRY
Governor of Texas

ATTESTED BY:
COBY SHORTER, III
Deputy Secretary of State

For a detailed view of this bill, visit http://www.legis.state.tx.us/BillLookup/History.aspx?LegSess=81R&Bill=HB1293.