INSURANCE AND ANNUITY TRANSACTIONS

(a) The language conferring authority with respect to insurance and annuity transactions in a statutory durable power of attorney empowers the attorney in fact or agent to: (1) continue, pay the premium or assessment on, modify, rescind, release, or terminate a contract procured by or on behalf of the principal that insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract; (2) procure new, different, or additional insurance contracts and annuities for the principal or the principal's spouse, children, and other dependents and select the amount, type of insurance or annuity, and method of payment; (3) pay the premium or assessment on, or modify, rescind, release, or terminate, an insurance contract or annuity procured by the attorney in fact or agent; (4) designate the beneficiary of the insurance contract, except as provided by Subsection (b); (5) apply for and receive a loan on the security of the insurance contract or annuity; (6) surrender and receive the cash surrender value; (7) exercise an election; (8) change the manner of paying premiums; (9) change or convert the type of insurance contract or annuity with respect to which the principal has or claims to have a power described by this section; (10) change the beneficiary of an insurance contract or annuity, except that the attorney in fact or agent may be designated a beneficiary only to the extent authorized by Subsection (b); (11) apply for and procure government aid to guarantee or pay premiums of an insurance contract on the life of the principal; (12) collect, sell, assign, borrow on, or pledge the principal's interest in an insurance contract or annuity; and (13) pay from proceeds or otherwise, compromise or contest, or apply for refunds in connection with a tax or assessment imposed by a taxing authority with respect to an insurance contract or annuity or the proceeds of the contract or annuity or liability accruing because of the tax or assessment. (b) Unless the principal has granted the authority to create or change a beneficiary designation expressly as required by Section 751.031(b)(4), an agent may be named a beneficiary of an insurance contract or an extension, renewal, or substitute for the contract only to the extent the agent was named as a beneficiary by the principal.