Texas 2013 - 83rd Regular

Texas Senate Bill SB840 Compare Versions

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1	1	By: Hancock S.B. No. 840
2	2	(Eiland)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain promotional practices not considered to be
8	8	prohibited discrimination, rebates, or inducements in insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subsection (b), Section 541.058, Insurance Code,
11	11	is amended to read as follows:
12	12	(b) It is not a rebate or discrimination prohibited by
13	13	Section 541.056(a) or 541.057:
14	14	(1) for a life insurance or life annuity contract, to
15	15	pay a bonus to a policyholder or otherwise abate the policyholder's
16	16	premiums in whole or in part out of surplus accumulated from
17	17	nonparticipating insurance policies if the bonus or abatement:
18	18	(A) is fair and equitable to policyholders; and
19	19	(B) is in the best interests of the insurer and
20	20	its policyholders;
21	21	(2) for a life insurance policy issued on the
22	22	industrial debit plan, to make to a policyholder who has
23	23	continuously for a specified period made premium payments directly
24	24	to the insurer's office an allowance in an amount that fairly
25	25	represents the saving in collection expenses;
26	26	(3) for a group insurance policy, to readjust the rate
27	27	of premium based on the loss or expense experience under the policy
28	28	at the end of a policy year if the adjustment is retroactive for
29	29	only that policy year;
30	30	(4) for a life annuity contract, to waive surrender
31	31	charges under the contract when the contract holder exchanges that
32	32	contract for another annuity contract issued by the same insurer or
33	33	an affiliate of the same insurer that is part of the same holding
34	34	company group if:
35	35	(A) the waiver and the exchange are fully,
36	36	fairly, and accurately explained to the contract holder in a manner
37	37	that is not deceptive or misleading; and
38	38	(B) the contract holder is given credit for the
39	39	time that the previous contract was held when determining any
40	40	surrender charges under the new contract;
41	41	(5) in connection with an accident and health
42	42	insurance policy, to provide to policy or certificate holders, in
43	43	addition to benefits under the terms of the insurance contract,
44	44	health-related services or health-related information, or to
45	45	disclose the availability of those additional services and
46	46	information to prospective policy or certificate holders; [or]
47	47	(6) in connection with a health maintenance
48	48	organization evidence of coverage, to provide to enrollees, in
49	49	addition to benefits under the evidence of coverage, health-related
50	50	services or health-related information, or to disclose the
51	51	availability of those additional services and information to
52	52	prospective enrollees or contract holders; or
53	53	(7) in connection with an offer or sale of a life
54	54	insurance policy or contract, accident and health insurance policy
55	55	or contract, or annuity contract, to give, provide, or allow or
56	56	offer to give, provide, or allow an item that is a promotional
57	57	advertising item, educational item, or traditional courtesy
58	58	commonly extended to consumers and that is valued at $25 or less.
59	59	SECTION 2. Section 1806.053, Insurance Code, is amended to
60	60	read as follows:
61	61	Sec. 1806.053. DISCRIMINATIONS OR DISTINCTIONS. Except as
62	62	provided by this subchapter [Section 1806.056], with respect to
63	63	business written in this state:
64	64	(1) an insurer may not discriminate or make a
65	65	distinction, or permit discrimination or a distinction to be made,
66	66	among insureds having like hazards with respect to premiums charged
67	67	for, or dividends or other benefits payable under, an insurance
68	68	policy;
69	69	(2) an insurer or an insurer's agent may not make an
70	70	insurance contract or an agreement relating to that insurance,
71	71	other than as expressed in the policy; and
72	72	(3) an insurer or an insurer's agent or other
73	73	representative may not directly or indirectly pay, allow, or give,
74	74	or offer to pay, allow, or give, as an inducement to the insured, a
75	75	rebate payable on the policy or a special favor or advantage in the
76	76	dividends or other benefits to accrue, or anything of value, not
77	77	specified in the policy.
78	78	SECTION 3. Subchapter B, Chapter 1806, Insurance Code, is
79	79	amended by adding Section 1806.059 to read as follows:
80	80	Sec. 1806.059. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED.
81	81	Section 1806.053 does not prohibit an insurer or an insurer's agent
82	82	or other representative from, in connection with an offer or sale of
83	83	an insurance policy subject to this subchapter, giving, providing,
84	84	or allowing or offering to give, provide, or allow an item that is a
85	85	promotional advertising item, educational item, or traditional
86	86	courtesy commonly extended to consumers and that is valued at $25 or
87	87	less.
88	88	SECTION 4. Subchapter C, Chapter 1806, Insurance Code, is
89	89	amended by adding Section 1806.1041 to read as follows:
90	90	Sec. 1806.1041. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED.
91	91	Section 1806.104 does not prohibit an insurer, an insurer's
92	92	employee, or a broker or agent from, in connection with an offer or
93	93	sale of an insurance policy subject to this subchapter, giving,
94	94	providing, or allowing or offering to give, provide, or allow an
95	95	item that is a promotional advertising item, educational item, or
96	96	traditional courtesy commonly extended to consumers and that is
97	97	valued at $25 or less.
98	98	SECTION 5. Subchapter D, Chapter 1806, Insurance Code, is
99	99	amended by adding Section 1806.1541 to read as follows:
100	100	Sec. 1806.1541. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED.
101	101	Section 1806.153 does not prohibit an insurer from, in connection
102	102	with an offer or sale of an insurance policy or contract subject to
103	103	this subchapter, giving, providing, or allowing or offering to
104	104	give, provide, or allow an item that is a promotional advertising
105	105	item, educational item, or traditional courtesy commonly extended
106	106	to consumers and that is valued at $25 or less.
107	107	SECTION 6. Section 4005.053, Insurance Code, is amended by
108	108	adding Subsection (d) to read as follows:
109	109	(d) Subsection (c) does not prohibit an agent from, in
110	110	connection with an offer or sale of an insurance policy or contract,
111	111	giving, providing, or allowing or offering to give, provide, or
112	112	allow an item that is a promotional advertising item, educational
113	113	item, or traditional courtesy commonly extended to consumers and
114	114	that is valued at $25 or less.
115	115	SECTION 7. The change in law made by this Act applies only
116	116	to conduct that occurs on or after the effective date of this Act.
117	117	Conduct that occurs before the effective date of this Act is
118	118	governed by the law applicable to the conduct immediately before
119	119	the effective date of this Act, and that law is continued in effect
120	120	for that purpose.
121	121	SECTION 8. This Act takes effect September 1, 2013.