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