82R8331 AJA-F
By: McClendon H.B. No. 1826
A BILL TO BE ENTITLED
AN ACT
relating to the use of unapproved or disapproved insurance or
health maintenance organization forms.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 541, Insurance Code, is
amended by adding Section 541.062 to read as follows:
Sec. 541.062. USE OF UNAPPROVED OR DISAPPROVED FORM. (a)
It is an unfair method of competition or an unfair or deceptive act
or practice in the business of insurance to deny or limit coverage
or benefits on the basis of language contained in a document for
which form approval is required under Subchapter C, Chapter 1271,
Chapter 1701, or Chapter 2301 if, as applicable:
(1) the form has not been approved under Chapter 1271,
1701, or 2301;
(2) the form has been disapproved under Chapter 1271,
1701, or 2301;
(3) approval of the form has been withdrawn under
Chapter 1271, 1701, or 2301;
(4) the form was not filed with a certification as
described by Section 1701.052;
(5) the commissioner has withdrawn an exemption of the
form from the approval requirements of Chapter 1701 and the form has
not subsequently been approved as required by Chapter 1701; or
(6) the form was not adopted by the commissioner under
Section 2301.008.
(b) This section does not apply to a document that has been
replaced or amended and corrected under Section 1701.059.
SECTION 2. The change in law made by this Act applies only
to a form used to write a document, including a policy, evidence of
coverage, or contract, on or after the effective date of this Act.
A form used before the effective date of this Act is governed by the
law in effect immediately before that date, 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, 2011.