| 4 | 10 | | AN ACT |
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| 5 | 11 | | relating to prohibited discrimination on the basis of an |
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| 6 | 12 | | individual's political affiliation or expression by certain |
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| 7 | 13 | | insurers. |
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| 8 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 15 | | SECTION 1. Chapter 544, Insurance Code, is amended by |
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| 10 | 16 | | adding Subchapter M to read as follows: |
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| 11 | 17 | | SUBCHAPTER M. POLITICAL AFFILIATION AND EXPRESSION |
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| 12 | 18 | | Sec. 544.601. APPLICABILITY OF SUBCHAPTER. This subchapter |
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| 13 | 19 | | applies to: |
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| 14 | 20 | | (1) any legal entity engaged in the business of |
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| 15 | 21 | | insurance in this state, including: |
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| 16 | 22 | | (A) a capital stock insurance company; |
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| 17 | 23 | | (B) a mutual insurance company; |
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| 18 | 24 | | (C) a title insurance company; |
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| 19 | 25 | | (D) a fraternal benefit society; |
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| 20 | 26 | | (E) a local mutual aid association; |
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| 21 | 27 | | (F) a statewide mutual assessment company; |
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| 22 | 28 | | (G) a county mutual insurance company; |
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| 23 | 29 | | (H) a Lloyd's plan; |
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| 24 | 30 | | (I) a reciprocal or interinsurance exchange; |
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| 25 | 31 | | (J) a stipulated premium company; |
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| 26 | 32 | | (K) a group hospital service corporation; |
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| 27 | 33 | | (L) a farm mutual insurance company; |
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| 28 | 34 | | (M) a risk retention group; |
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| 29 | 35 | | (N) an eligible surplus lines insurer; and |
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| 30 | 36 | | (O) an agent, broker, adjuster, or life and |
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| 31 | 37 | | health insurance counselor; and |
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| 32 | 38 | | (2) a health maintenance organization. |
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| 33 | 39 | | Sec. 544.602. PROHIBITION. Except as provided by Section |
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| 34 | 40 | | 544.603, a person may not refuse to insure or provide coverage to an |
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| 35 | 41 | | individual, refuse to continue to insure or provide coverage to an |
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| 36 | 42 | | individual, limit the amount, extent, or kind of coverage available |
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| 37 | 43 | | for an individual, or charge an individual a rate that is different |
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| 38 | 44 | | from the rate charged to other individuals for the same coverage |
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| 39 | 45 | | because of the individual's political affiliation or expression. |
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| 40 | 46 | | Sec. 544.603. EXCEPTIONS. A person does not violate |
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| 41 | 47 | | Section 544.602 if the refusal, limitation, or charge is: |
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| 42 | 48 | | (1) based on sound underwriting or actuarial |
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| 43 | 49 | | principles reasonably related to actual or anticipated loss |
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| 44 | 50 | | experience; or |
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| 45 | 51 | | (2) required or authorized by law or a regulatory |
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| 46 | 52 | | mandate. |
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| 47 | 53 | | Sec. 544.604. ENFORCEMENT ACTIONS. (a) A health |
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| 48 | 54 | | maintenance organization or legal entity engaged in the business of |
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| 49 | 55 | | insurance that is found to be in violation of or to have failed to |
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| 50 | 56 | | comply with this subchapter is subject to the sanctions provided by |
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| 51 | 57 | | Chapter 82 or administrative penalties authorized under Chapter 84. |
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| 52 | 58 | | (b) In addition to the procedures provided by Subsection |
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| 53 | 59 | | (a), the commissioner may use the cease and desist procedures |
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| 54 | 60 | | authorized by Chapter 83. |
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| 55 | 61 | | SECTION 2. Subchapter M, Chapter 544, Insurance Code, as |
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| 56 | 62 | | added by this Act, does not apply to an insurance policy that is |
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| 57 | 63 | | delivered, issued for delivery, or renewed before the effective |
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| 58 | 64 | | date of this Act. |
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| 59 | 65 | | SECTION 3. This Act takes effect September 1, 2021. |
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| 60 | | - | ______________________________ ______________________________ |
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| 61 | | - | President of the Senate Speaker of the House |
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| 62 | | - | I certify that H.B. No. 3433 was passed by the House on May |
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| 63 | | - | 14, 2021, by the following vote: Yeas 134, Nays 9, 2 present, not |
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| 64 | | - | voting. |
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| 65 | | - | ______________________________ |
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| 66 | | - | Chief Clerk of the House |
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| 67 | | - | I certify that H.B. No. 3433 was passed by the Senate on May |
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| 68 | | - | 27, 2021, by the following vote: Yeas 31, Nays 0. |
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| 69 | | - | ______________________________ |
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| 70 | | - | Secretary of the Senate |
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| 71 | | - | APPROVED: _____________________ |
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| 72 | | - | Date |
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| 73 | | - | _____________________ |
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| 74 | | - | Governor |
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| 66 | + | * * * * * |
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