By: Smithee, Oliverson (Senate Sponsor - Hughes) H.B. No. 3433
(In the Senate - Received from the House May 17, 2021;
May 17, 2021, read first time and referred to Committee on State
Affairs; May 21, 2021, reported favorably by the following vote:
Yeas 9, Nays 0; May 21, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to prohibited discrimination on the basis of an
individual's political affiliation or expression by certain
insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 544, Insurance Code, is amended by
adding Subchapter M to read as follows:
SUBCHAPTER M. POLITICAL AFFILIATION AND EXPRESSION
Sec. 544.601. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to:
(1) any legal entity engaged in the business of
insurance in this state, including:
(A) a capital stock insurance company;
(B) a mutual insurance company;
(C) a title insurance company;
(D) a fraternal benefit society;
(E) a local mutual aid association;
(F) a statewide mutual assessment company;
(G) a county mutual insurance company;
(H) a Lloyd's plan;
(I) a reciprocal or interinsurance exchange;
(J) a stipulated premium company;
(K) a group hospital service corporation;
(L) a farm mutual insurance company;
(M) a risk retention group;
(N) an eligible surplus lines insurer; and
(O) an agent, broker, adjuster, or life and
health insurance counselor; and
(2) a health maintenance organization.
Sec. 544.602. PROHIBITION. Except as provided by Section
544.603, a person may not refuse to insure or provide coverage to an
individual, refuse to continue to insure or provide coverage to an
individual, limit the amount, extent, or kind of coverage available
for an individual, or charge an individual a rate that is different
from the rate charged to other individuals for the same coverage
because of the individual's political affiliation or expression.
Sec. 544.603. EXCEPTIONS. A person does not violate
Section 544.602 if the refusal, limitation, or charge is:
(1) based on sound underwriting or actuarial
principles reasonably related to actual or anticipated loss
experience; or
(2) required or authorized by law or a regulatory
mandate.
Sec. 544.604. ENFORCEMENT ACTIONS. (a) A health
maintenance organization or legal entity engaged in the business of
insurance that is found to be in violation of or to have failed to
comply with this subchapter is subject to the sanctions provided by
Chapter 82 or administrative penalties authorized under Chapter 84.
(b) In addition to the procedures provided by Subsection
(a), the commissioner may use the cease and desist procedures
authorized by Chapter 83.
SECTION 2. Subchapter M, Chapter 544, Insurance Code, as
added by this Act, does not apply to an insurance policy that is
delivered, issued for delivery, or renewed before the effective
date of this Act.
SECTION 3. This Act takes effect September 1, 2021.
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