| 1 | 1 | | By: Carona S.B. No. 1125 |
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| 2 | 2 | | (Smithee) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to first-party indemnity coverage purchased by insurance |
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| 8 | 8 | | purchasing groups. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2201.251, Insurance Code, is amended by |
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| 11 | 11 | | adding Subsections (c), (d), and (e) to read as follows: |
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| 12 | 12 | | (c) Notwithstanding any other provision of this code, a |
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| 13 | 13 | | purchasing group composed primarily of employees of a political |
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| 14 | 14 | | subdivision, including a county, municipality, or school district, |
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| 15 | 15 | | may purchase first-party indemnity coverage, in addition to the |
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| 16 | 16 | | liability coverage described in Subsection (a)(3), on a group basis |
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| 17 | 17 | | for other risks to which members may be exposed provided that the |
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| 18 | 18 | | aggregate coverage limit per group member for the risk does not |
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| 19 | 19 | | exceed three percent of the per member coverage limit for liability |
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| 20 | 20 | | coverage. |
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| 21 | 21 | | (d) A purchasing group shall notify the commissioner of the |
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| 22 | 22 | | group's intent to purchase coverage described by Subsection (c) not |
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| 23 | 23 | | later than the 60th day before the date the policy that includes the |
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| 24 | 24 | | coverage is initially issued. |
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| 25 | 25 | | (e) Subsection (d) does not apply to a purchasing group |
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| 26 | 26 | | described by Subsection (c) that was providing to its members |
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| 27 | 27 | | coverage described by Subsection (c) on January 1, 2013, and has |
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| 28 | 28 | | continued to provide that coverage without lapse. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2013. |
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