81R9590 PMO-D
By: Eiland H.B. No. 1856
A BILL TO BE ENTITLED
AN ACT
relating to requiring insurers to offer conversion of group
policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 121.256(a) and (b), Insurance Code, are
amended to read as follows:
(a) An insurer shall [may] offer a conversion policy to each
employee, member, or dependent who is covered under a group
accident and health insurance policy that is terminating.
(b) An [If offered, an] issuer shall issue a conversion
policy without evidence of insurability if a written application
for the policy and payment of the first premium are made not later
than the 31st day after the date of termination.
SECTION 2. This Act applies only to an insurance policy or
contract or evidence of coverage that is delivered, issued for
delivery, or renewed on or after January 1, 2010. An insurance
policy or contract or evidence of coverage delivered, issued for
delivery, or renewed before January 1, 2010, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.