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Bill

HB 1041

Relating to the insurable interest of certain persons providing care to individuals with disabilities in the life of those individuals.

89th Legislature (2025) Introduced by Salman Bhojani and 7 co-sponsors

Texas law now permits caregivers of disabled individuals to purchase life insurance on their charges, enabling financial protection if care recipients die unexpectedly.

Effective immediately
#assistedlivingfacilities(s0617) #disabilities #personswith(i0380) #insurance--life&annuities(i0423) #mentalhealth&substanceabuse(i0019) #nursinghomes(i0539) #occupationalregulation--healthoccupations(i0540)
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Bill Summary · HB 1041

Legislative bill overview

HB 1041 allows caregivers of individuals with disabilities to obtain life insurance on the people they care for, establishing what's called "insurable interest" for this specific relationship. The bill was signed into law in Texas effective immediately as of May 29, 2025.

Why is this important

This change addresses a practical gap for disability care providers—parents, guardians, and professional caregivers who depend on caring for a disabled individual often face financial hardship if that person dies unexpectedly. The law enables these caregivers to purchase life insurance that protects their livelihood, though it also creates potential moral hazard concerns around the incentive structure.

Potential points of contention

  • Moral hazard risk: Allowing caregivers to profit from a disabled person's death could create perverse incentives, raising concerns about whether safeguards exist to prevent abuse or negligence
  • Definition and scope ambiguity: The bill's language about "certain persons providing care" may be unclear regarding who qualifies (family members, paid staff, volunteers) and what level of financial dependency is required
  • Regulatory oversight: Questions remain about whether existing insurance regulations adequately protect vulnerable individuals from exploitation or whether new oversight mechanisms are needed

Compiled from official sources — confirm details with the bill’s official record.

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