81R6229 AJA-F By: Rodriguez H.B. No. 1369 A BILL TO BE ENTITLED AN ACT relating to unfair claim settlement practices by an insurer that issues a preferred provider benefit plan. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 541.060, Insurance Code, is amended by adding Subsection (c) to read as follows: (c) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance for an insurer that issues a preferred provider benefit plan under Chapter 1301 to compute the insured's coinsurance for out-of-network services otherwise available under the plan on an amount other than the nonpreferred provider's billed charge. SECTION 2. The change in law made by this Act applies only to computation of coinsurance under a preferred provider benefit plan delivered, issued for delivery, or renewed on or after the effective date of this Act. Computation of coinsurance under a preferred provider benefit plan delivered, issued for delivery, or renewed before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.