| 1 | 1 | | By: Taylor S.B. No. 853 |
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| 2 | 2 | | (Sheets) |
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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 notice of a premium increase for certain health |
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| 8 | 8 | | insurance policies. |
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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. The heading to Section 1201.109, Insurance Code, |
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| 11 | 11 | | is amended to read as follows: |
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| 12 | 12 | | Sec. 1201.109. NOTICE OF RATE INCREASE FOR MAJOR MEDICAL |
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| 13 | 13 | | EXPENSE INSURANCE POLICY. |
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| 14 | 14 | | SECTION 2. Section 1201.109, Insurance Code, is amended by |
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| 15 | 15 | | amending Subsection (a) and adding Subsection (f) to read as |
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| 16 | 16 | | follows: |
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| 17 | 17 | | (a) Not less than 60 days before the date on which a premium |
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| 18 | 18 | | rate increase takes effect on an individual accident and health |
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| 19 | 19 | | insurance policy that provides major medical expense coverage and |
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| 20 | 20 | | that is delivered or issued for delivery in this state by an |
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| 21 | 21 | | insurer, the insurer shall: |
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| 22 | 22 | | (1) give written notice to the insured of the |
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| 23 | 23 | | effective date of the increase; and |
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| 24 | 24 | | (2) provide the insured a table that clearly lists: |
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| 25 | 25 | | (A) the actual dollar amount of the premium on |
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| 26 | 26 | | the date of the notice; |
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| 27 | 27 | | (B) the actual dollar amount of the premium after |
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| 28 | 28 | | the premium rate increase; and |
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| 29 | 29 | | (C) the percentage change between the amounts |
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| 30 | 30 | | described by Paragraphs (A) and (B). |
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| 31 | 31 | | (f) For purposes of this section, "major medical expense |
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| 32 | 32 | | coverage" means an individual major medical expense insurance |
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| 33 | 33 | | policy to which this chapter applies under Section 1201.003 that |
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| 34 | 34 | | constitutes creditable coverage under Section 1205.004. |
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| 35 | 35 | | SECTION 3. This Act takes effect immediately if it receives |
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| 36 | 36 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 38 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 39 | | Act takes effect September 1, 2013. |
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